Sands China 1928

[winston]

DJ Sands China Gets $1.75B Bank Financing For Macau Cotai Resort

HONG KONG (Dow Jones)--Sands China Ltd. (1928.HK), the Macau unit of Las Vegas Sands Corp. (LVS), said Friday it has secured US$1.75 billion in bank financing to develop two plots of land at Cotai Strip in Macau.

Sands China, which will list on the Hong Kong stock exchange Monday, said in a statement the bank financing will be spent on building a resort, which will have 6,000 hotel rooms, at Cotai Strip.

The statement didn't say which banks are in the syndication. But people familiar with the situation said earlier five investment banks handling Sands China's Hong Kong initial public offering--global coordinators Citigroup Inc. (C) and Goldman Sachs Group (GS), and underwriters Barclays PLC, BNP Paribas SA, and UBS AG--have pledged to lend US$1.45 billion.

Sands China raised US$2.5 billion in a Hong Kong IPO ahead of a listing Monday, the seventh largest global IPO this year. It sold 1.87 billion shares at HK$10.38 each, in a HK$10.38-HK$13.88 indicative price range.

Source: Aries Poon, Dow Jones Newswires

[winston]

Vested from IPO.

DJ Sands China Slumps On Debut On Concerns Over Valuation, Debt

HONG KONG (Dow Jones)--Casino operator Sands China Ltd.(1928.HK) fell sharply on its Hong Kong stock exchange debut Monday, reflecting investor concerns over a rich valuation and heavy indebtedness.

At 0310 GMT, the Macau unit of Las Vegas Sands Corp. (LVS) was down 12% at HK$9.16, having recovered from a low of HK$8.78. The benchmark Hang Seng Index was up 3.4% at 23,860.63.

Sands China was the exchange's most heavily traded stock with HK$1.59 billion worth of shares changing hands.

The company raised US$2.5 billion in the world's seventh-biggest initial public offering this year after its IPO was priced at the low end of the indicative range following a lackluster reception from investors

Analysts weren't surprised by the weak debut.

"Its aggressive expansion plan has resulted in heavy indebtedness, and coupled with its unattractive valuation I think the stock will remain underperforming in the near-term," said Ernie Hon, a strategist at ICBC International.

Hon said the lack of new themes to support Macau-related stocks may put further pressure on Sands China's performance.

Sands China's IPO price of HK$10.38 translated to an enterprise value of 13.5 times forecast 2010 earnings before interest, tax, depreciation and amortization, higher than Wynn Macau Ltd.'s (1128.HK) 2010 price-earnings ratio of 12.7 times. Wynn Macau listed on the Hong Kong bourse in September after a US$1.9 billion fund-raising.

Sands China has US$3.4 billion in outstanding debt and net current liabilities of US$1.3 billion. It will use more than half its IPO proceeds to repay debt.

Source: Dow Jones Newswires

[winston]

=DJ HEARD ON THE STREET: Macau's Shifting Sands By Mohammed Hadi

A DOW JONES COLUMN

Superlatives are out. Not just in Dubai.

Sands China, the Macau casinos of Las Vegas Sands, debuted to a dismal reception Monday. Shares dropped 10%, while the broad market--and most Macau-related stocks-- jumped sharply.

It's little wonder. The company may own the Venetian Macao --the world's biggest casino--and aspire to build Macau's answer to the Las Vegas Strip on a patch of reclaimed land, but it's heavily indebted and borrowing more to fund its expansion. Much of the proceeds from the $2.5 billion IPO will go towards paying off the borrowings that are most urgently due, but Sands will still be left with some $3.1 billion in debt to repay, Credit Suisse estimates.

For a business that's already proven susceptible to changing economic and policy winds from China, this is enough to make investors think twice. News from Dubai served as a timely reminder of how quickly things can unravel for companies depending on borrowed funds.

A particular concern comes with the company's plan to develop the Cotai area. Sands wants to build five integrated resorts and plans to spend $2.2 billion toward completing the first two phases of this; $500 million of which is coming from the IPO proceeds. Factor in the cost overruns and delays that are 'quite famous in Macau' and more financing may be in order, says Credit Suisse analyst Gabriel Chan.

There has been good news from Macau lately. Visitor numbers are recovering, and Moody's thinks revenues could climb 10% to 15% in the year ahead.

But gamblers returning to Macau are fueled by easy credit on the mainland -- from where most of the territory's visitors hail -- and this is susceptible to tightening by Beijing. Already a different kind of policy risk, visa restrictions that limit the number of times gamblers from the mainland can visit Macau, has given investors something to worry about.

Sands China was never an easy sell. The listing fell well short of early hopes that it would raise $3.5 billion, and priced at the bottom of its indicated range, with little of the over-the-top interest that's characterized some Hong Kong listings.

And that was before the implosion of another glitzy, credit-fueled, biggest-in-the-world playground for the rich.

Source: Dow Jones

[winston]

Sands China Has Enough Funds After Hong Kong IPO, Adelson Says Share Business
By Chia-Peck Wong

Dec. 1 (Bloomberg) -- Las Vegas Sands Corp. has enough money for its Macau projects after selling shares in a unit in Hong Kong’s biggest initial public offering this year, billionaire chairman Sheldon Adelson said.

“We don’t need more funds” from the markets, Adelson, 76, said yesterday in an interview in Hong Kong, where Sands China Ltd. had its first day of trading. The Macau unit and [b]its parent have raised about $4.85 billion in debt and equity financing in the past three months.

Sands China, operator of the world’s biggest casino by floor area, will use some of the money to complete the mothballed Shangri-La, Traders and Sheraton hotels at a 13.3 million square foot resort in the world’s biggest gambling hub. A year ago, Adelson and his family invested about $1 billion in Las Vegas Sands to avoid violating the terms of U.S. loans and triggering defaults that risked forcing it into bankruptcy.

Sands China may need extra funds in the 2011 and 2012 financial years to cover $1.68 billion in debt repayments, Gabriel Chan, a Hong Kong-based analyst at Credit Suisse, said in a report yesterday. He initiated coverage of the stock with an “underperform” rating.

Adelson said it’s “completely wrong” to say Sands China may require more funds. He also said he doesn’t plan to pull his investment out of Las Vegas Sands and would instead “love to” inject more cash on the same basis as a preferred shareholder. “But the company is not going to give it to me, because the company doesn’t need the money.”

Sands China will be paying $1.7 billion back to its parent, Credit Suisse’s Chan said in a phone interview late yesterday. “The U.S. side may not need the money, but of the $2.5 billion IPO, only $800 million is staying in Macau,” he said.

Macau Apartments

Sands China’s financing plans also rely too much on the successful sale of its apartments in Macau, Chan said.

The company has the approval to sell its Four Seasons apartments in Macau on a co-operative basis, and is in the process of applying to the government to sell the homes based on strata titles, Adelson said. Sands president Michael Leven said in October that getting the strata title would make sales easier.

Adelson estimates the apartments at Four Seasons may fetch between $1.2 billion and $1.4 billion, while those on the sites where building will resume may be worth a further $1.5 billion.

Construction at the sites was halted in November 2008 as credit markets froze, revenue growth slowed and the risk of loan defaults swelled. Finishing the resort on Macau’s Cotai Strip will strengthen Adelson’s challenge to 88-year-old Stanley Ho’sSJM Holdings Ltd.

http://www.bloomberg.com/apps/news?pid= ... IjWSNupa1E

[winston]

Not vested.

DJ MARKET TALK: Venetian Macao Surprises In LVS 4Q Results - CLSA

1349 [Dow Jones] Following release of Sands China's (1928.HK) parent company Las Vegas Sands' (LVS) 4Q results, CLSA says biggest surprise from Venetian Macao, whose property Ebitdar of US$174.7 million topped house's forecast by 11%, consensus by 10%. Adds margins were strong at 31%.

On other hand, says Sands Macao property, for which company had to increase reserves of US$12 million due to collection of debt from a single player, disappointed. Notes this is one-off item, however, and is checking if there are other reasons for Sands' poor performance such as bad hold rate.

Sands China shares to resume trade at 0630 GMT after being halted in morning session so company could present highlights from parent's results. Shares down 2.5% at HK$10.96 before being suspended. House rates stock at Buy with HK$14.00 target.

Source: Dow Jones Newswire

[winston]

Not vested.

Sands China says 2009 net profit up 22 pct

HONG KONG, March 2 (Reuters) - Sands China <1928.HK>, the world's most valuable casino operator by market capitalisation, said its 2009 net profit rose 22 percent from a year earlier, driven by a surge in gambling revenue in Macau.

The company said on Tuesday net profit for the year ended December rose to $213.8 million, compared with $175.7 million a year ago and a consensus forecast of $219.6 million from seven analysts polled by Thomson Reuters I/B/E/S.

Sands, 70-percent-owned by Las Vegas Sands , said net revenues rose 8.1 percent to $3.3 billion last year.

The casino operator run by billionaire Sheldon Adelson owns two casinos in Macau, including the Venetian Macau, the world's largest.

Gambling revenue in Macau reached a high of $1.8 billion in January, signalling sustained growth in the world's largest gambling market and the only place in China where gambling is legal.

Source: Reuters

[winston]

Not vesterd.

DJ MARKET TALK: Sands China Outlook Upbeat; GS Keeps Retains Buy

1449 [Dow Jones] Goldman Sachs says Sands China's (1928.HK) outlook upbeat, given its strong Macau gaming revenue growth in January-February (+66% on-year), and fact that EBITDA running at similar rate year-to-date vs that of 4Q09, even though 4Q is stronger seasonally.

"A potential near-term catalyst for Sands' stock is the proposed sale of Four Seasons apart-hotel, for which management targets an average selling price of US$1,500 per square feet by end-2Q10."

This, if successful, would lead to sales proceeds of US$1.3 billion by Goldman's estimate, presenting 3% and 21% upside to house's FY10 NAV and FY10 earnings estimates, respectively, due to interest cost savings. Keeps at Buy, HK$13.30 target. Stock +0.9% at HK$10.70


Source: Dow Jones Newswire

[winston]

Not vesterd. Pls note GS was the Global Coordinator the IPO but I'm sure there's a Chinese Wall ...

DJ MARKET TALK: Sands China Outlook Upbeat; GS Keeps Retains Buy

1449 [Dow Jones] Goldman Sachs says Sands China's (1928.HK) outlook upbeat, given its strong Macau gaming revenue growth in January-February (+66% on-year), and fact that EBITDA running at similar rate year-to-date vs that of 4Q09, even though 4Q is stronger seasonally.

"A potential near-term catalyst for Sands' stock is the proposed sale of Four Seasons apart-hotel, for which management targets an average selling price of US$1,500 per square feet by end-2Q10."

This, if successful, would lead to sales proceeds of US$1.3 billion by Goldman's estimate, presenting 3% and 21% upside to house's FY10 NAV and FY10 earnings estimates, respectively, due to interest cost savings. Keeps at Buy, HK$13.30 target. Stock +0.9% at HK$10.70


Source: Dow Jones Newswire

[winston]

Not vested. I was at The Venetian Macau on a Saturday recently and it was packed. Wonder how's their traffic on the weekdays ?

From Dr. Check:-

Today, take a look at Sands China (1928). It operates the Venetian Macau, Sands Macau, Plaza Macau and the Cotai Jet ferry service.

Net profit last year rose 21.7 percent from 2008 to US$213.8 million (HK$1.66 billion). Earnings per share gained 18.6 percent to US$3.32 cents.

Revenues from Macau casinos have hit record highs, and Dr Check suggests adding at least one operator to your portfolio.

Deutsche Bank rates Sands China as the sector's first choice. It estimates Sands China's earnings before interest, tax, depreciation and amortization from each client is HK$300 against an industry average of HK$120. UBS targets the stock at HK$15.60.

Sands China closed at HK$12.10 yesterday, signaling, even in modest terms, a 28 percent upside.

http://www.thestandard.com.hk/news_deta ... 00421&fc=4

[winston]

Sands China Q1 net profit rises 315 pct

HONG KONG, May 11 (Reuters) - Sands China <1928.HK>, the world's second-most valuable casino operator by market value, posted first-quarter earnings that quadrupled from a year ago, thanks to more gamblers at its Macau casinos and cost controls.

Sands China, whose rivals include Wynn Macau <1128.HK> and Melco Crown Entertainment , reported net profit of $110.51 million for January-March, up from $26.66 million a year ago.

The results were widely expected as Sands China had reported last Friday first-quarter profit of $113.3 million, according to U.S. GAAP standards, together with Las Vegas Sands.

Most analysts say Sands China, 70 percent owned by U.S. casino firm Las Vegas Sands , is their favourite pick among Macau casino stocks, due to its aggressive expansion plans and high exposure to the mass-market gambling segment, which is more resilient to economic turbulence.


Source: Reuters