United States-based Pzena Investment Management LLC has spent HKD879.77 million (US$112.22 million) to increase its long position in Hong Kong-listed Macau casino operator Galaxy Entertainment Group Ltd, via two recent transactions.
That is according to shareholding disclosures filed with the Hong Kong bourse. Pzena is deemed a substantial shareholder in Galaxy Entertainment.
The second and largest of the two purchases was on June 16, when Pzena spent HKD695.61 million in upping its long position in Galaxy Entertainment to 6.27 percent, from 5.75 percent. The average price per share at point of exchange had stood at HKD30.51 for that transaction.
On May 14 Pzena had spent HKD184.16 million to increase its long position in Galaxy Entertainment from 4.89 percent to 5.01 percent. Average price per share at point of exchange was HKD33.81.
At the close of Monday trading on the Hong Kong bourse, Galaxy Entertainment’s share price was at a calendar-year low of HKD29.82.
Hong Kong-listed Macau gaming names have been underperforming versus the Hang Seng Index year-to-date, said banking group Morgan Stanley in a Sunday memo.
The institution attributed that to the market’s downward revision of Macau-sector earnings before interest, taxation, depreciation and amortisation (EBITDA); and expectations of “weaker June/July” casino gross gaming revenue (GGR).
In the same note the banking group mentioned it had cut 2026 growth estimates for Macau’s full-year GGR and EBITDA.
Macau gaming stocks were “rolling at the bottom”, for now, suggested Morgan Stanley.
