SJM Holdings 880 / Stanley Ho

Re: SJM Holdings 880 / Stanley Ho

Postby winston » Tue Jul 04, 2017 6:00 pm

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Macau Casinos: Nomura Downgrades SJM
By Isabella Zhong

SJM Holdings' (880.HK) shares are down 3% on Tuesday morning after Nomura downgraded the stock from buy to neutral.

Analyst Richard Huang says the casino operator has not gained much from Macau's high-end gaming revenue growth (GGR), while mass market customers are choosing casinos in Macau's Cotai district over SJM's flagship Grand Lisboa:

We flagged SJM as a deep-value stock in December 2016 and upgraded it to a Buy with 36% potential upside. Six months down the road, SJM has benefitted little from Macau’s GGR growth, as the city’s largest junket operator (SunCity) does not have any sizeable operations in SJM’s flagship casino (Grand Lisboa), hence the company has not benefited much from the high-end gaming recovery.

Mass market customers, on the other hand, continue to gravitate towards Cotai, with SJM and its flagship casino Grand Lisboa experiencing 8% and 9% mass GGR declines, respectively, in 2016 (underperforming other Macau Peninsula casinos like MGM Macau, which enjoyed 2% growth).

Huang expects SJM’s market share to further decline in 2017 and sees few near-term catalysts for the casino operator although a long-term catalyst could be the opening of Grand Lisboa Palace, which has been delayed until the second half of 2018.

This delay has resulted in analysts lowering the estimated earnings before interest, depreciation and amortization (EBITDA) for 2018 by 6%, with the recent rally taking the 2017 and 2018 enterprise value to EBITDA multiples to 13.3 times and 13.5 time, respectively.

The analyst has a HKD9 a share target price on SJM, which implies 14% upside. SJM shares trade at 27 times forward earnings and pay a 3% dividend yield.

Source: Barron's Asia

http://www.barrons.com/articles/macau-c ... 1499140249
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Aug 02, 2017 7:23 am

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Ho's SJM hit by stiffer competition

by Dominique Nguy

Macau casino operator SJM Holdings (0880) reported a 12.9 percent fall in first-half net profit yesterday, hit by rising competition in the world's biggest casino hub which has eaten away at its market share.

SJM, controlled by the family of Macau casino tycoon Stanley Ho Hung- sun, helped put the former Portuguese colony on the map 40 years ago with the fluorescent, onion-shaped Casino Lisboa, and has presided over much of Macau's development as a casino city.

Net profit fell to HK$955 million from HK$1.1 billion from a year earlier, while revenues dropped 1.9 percent to HK$20.6 billion.

Mass market table gaming revenue dropped 0.5 percent and VIP gaming revenue declined 3.4 percent.

Meanwhile, casinos in Macau extended a one-year winning streak, with monthly revenue rising 29 percent in July due to a resurgence in spending by wealthy punters and increased numbers of tourists.

The industry is recovering from a more than two-year decline that coincided with a Chinese government campaign against ostentatiousness among public officials.

Gambling revenue reached 23 billion patacas (HK$22.33 billion) in July, government data showed yesterday. That compared with analyst estimates of 27 to 30 percent growth.

Macau's overall market has grown over the past year, with new resorts increasing competition for casino operators.

Operators may also be impacted by tighter regulations regarding yuan inflows into Macau implemented over the past six months, analysts have said.

The expansion of Macau's Las Vegas-styled Cotai strip, built on reclaimed land, has drawn gamblers away from Macau's peninsula, a 15-minute drive away and home to MGM Macau and SJM's Lisboa casinos.

Both MGM and SJM, which have yet to open casinos on Cotai, will be at a disadvantage until their openings, analysts said. MGM is due to open at the end of the year, while it's 2018 for SJM.

Ongoing infrastructure development, such as a new ferry terminal near Cotai which opened in June and a planned light rail service, are likely to help drive increasing numbers of visitors to the Cotai strip in future, analysts said.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 0802&sid=2
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Aug 02, 2017 2:12 pm

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<Post Result>Brokers' Latest Ratings & TPs for SJM HOLDINGS (Table)


SJM HOLDINGS (00880.HK) announced that interim net profit faded 12.9% to $955 million with EPS of 16.9 cents.

Interim divided was 5 cents. During the period, adjusted EBITDA reduced 7.7% to $1.508 billion.

Our website summarized the latest investment ratings and target prices of SJM HOLDINGS from eight brokers, of which two brokers trimmed the target price and two maintained the rating of Conviction Buy and Outperform:

Brokers/ Investment Ratings/ Target Price (HKD)
Goldman Sachs/ Buy (Conviction Buy List)/10.4
Deutsche Bank/ Hold/ 8.8
Macquarie/ Outperform/ 8.1
HSBC Global Research/ Hold/ 7.8
Morgan Stanley/ Underweight/ 7.4
Credit Suisse/ Neutral/ 7.4->7.1
CIMB/ Underweight/ 7.09
Bank of America Merrill Lynch/ Underperform/ 7.3->7

Source: AAStocks Financial News
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Sep 06, 2017 8:40 am

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Valuation of SJM Holdings (880) is cheap

The Grand Lisboa Palace will have an integrated resort on Cotai opening in 2018's second half.

Price-to- earnings is 16 times, with 3.4 percent yield. The stock is a laggard in the sector.

The situation may turn better in the second half next year. Long term investors can consider buying.

Source: Dr Check, The Standard
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Tue Oct 31, 2017 6:26 pm

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2017 THIRD QUARTER AND YEAR-TO-DATE HIGHLIGHTS (UNAUDITED)

Gaming revenue of the Group in Q3 2017 was HK$10,015 million, an increase of 0.6% from Q3 2016 and for the nine months ended 30 September 2017, gaming revenue was HK$30,390 million, a decrease of 1.2% from the first nine months of 2016.

Adjusted EBITDA1 of the Group in Q3 2017 was HK$726 million, a decrease of 10.4% over Q3 2016, and for the nine months ended 30 September 2017, Adjusted EBITDA was HK$2,233 million, a decrease of 8.6% from the first nine months of 2016.

Adjusted EBITDA Margin2 of the Group in Q3 2017 decreased to 7.2% from 8.0% in Q3 2016, and for the nine months ended 30 September 2017 decreased to 7.3% from 7.8% in the first nine months of 2016.

Profit attributable to owners of the Company in Q3 2017 was HK$428 million, a decrease of 16.5% over Q3 2016, and for the nine months ended 30 September 2017, profit attributable to owners of the Company was HK$1,383 million, a decrease of 14.1% from the first nine months of 2016.

Gaming revenue of the Group’s flagship Casino Grand Lisboa was HK$3,709 million, an increase of 19.3% from Q3 2016, whilst its Adjusted EBITDA was HK$418 million, an increase of 2.0%. For the nine months ended 30 September 2017, Casino Grand Lisboa’s gaming revenue was HK$11,016 million, an increase of 11.3% from the first nine months of 2016, whilst its Adjusted EBITDA was HK$1,265 million, an increase of 0.8%.

The Group maintained a strong and liquid financial position, with HK$13,456 million of cash, bank balances and pledged bank deposits and HK$4,435 million of debt as at 30 September 2017.

Construction of the Grand Lisboa Palace, the Group’s integrated resort on Cotai, continued in Q3 2017 but was adversely affected by category 10 Typhoon Hato in August 2017 and a fire incident in September 2017. The Group is aiming to complete the project by the end of 2018 on budget.

http://www.hkexnews.hk/listedco/listcon ... 031542.pdf
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Nov 01, 2017 8:31 am

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Macau casino operator SJM falls short of market expectations with 16.5pc profit drop in third quarter

Analysts say the company’s fortunes may improve in 2018 with Beijing’s push of the ‘Greater Bay Area’ scheme and regional infrastructure projects coming on stream

The net profit of HK$428 million (US$54.8 million) for the quarter missed the HK$496.5 million consensus estimate by analysts polled by Bloomberg.

The net profit for the nine months ended in September was also down 14.1 per cent on the year to HK$1.38 billion.


While the company saw the return of its high rollers on the back of a 7.4 per cent rise in revenue from the VIP segment to HK$4.73 billion in the quarter, revenue from its mass market gaming business declined.

Revenue from mass market gaming and slot machine segments slid 4.6 per cent and 7.7 per cent to HK$5.04 billion and HK$251 million respectively in the third quarter, compared with a year ago.


SJM, owned by the family of casino mogul Stanley Ho, operates 19 casinos and two hotels in the


Source: SCMP

http://www.scmp.com/business/china-busi ... xpectation
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Nov 01, 2017 9:14 am

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Fundamental weakness

3Q17’s EBITDA of HK$726m (-10% yoy, +9% qoq) was in line with our forecast.

A catalyst for the stock will be the opening of Grand Lisboa Palace (GLP) which may
not happen until 2019.

Maintain Reduce with a target price still based on 7x FY18F EV/EBITDA, in line the stock’s four-year average. GLP comprises 16% of our target price.

source: CIMB

https://brokingrfs.cimb.com/ZKW147lWF5n ... CQHrA2.pdf
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Nov 01, 2017 11:11 am

3Q17 in line; new project largely on track

Jai Alai hotel is expected to commence operation soon in late 2017, which is pending the
operation approval from government. In 3Q, the cost for carrying excess staff pre-opening was around HK$45 mn (2Q: HK$54 mn).


Limited re-rating catalyst in sight

SJM is attractive for its undemanding valuation (at a mere 8x FY19E EBITDA) and its solid net cash balance sheet (HK$9 bn as of 3Q17).

That said, until the opening of Grand Lisboa Palace (scheduled by end 2018), we believe SJM will continue to face market share loss to the Cotai based operators despite an industry-wide revenue recovery.

We retain our NEUTRAL rating, and suggest that investors position for the stock closer to SJM’s new project opening or when its market share stabilises.


Source: CS
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed May 30, 2018 12:01 pm

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<Research Report>G Sachs Lifts SJM HOLDINGS (00880.HK) TP to $12.7; Strong GGR Sustains into 2Q

Goldman Sachs said in its report that SJM HOLDINGS (00880.HK) will benefit from the industry GGR growth and that its EBITDA improved in the past two quarters.

Factoring in the targeted opening of Lisboa Palace in mid-2019, SJM HOLDINGS' share price was set to climb, for which it was reiterated Buy (on CL) at the target price $12.7, lifted from $12.

Source: AAStocks Financial News
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Re: SJM Holdings 880 / Stanley Ho

Postby winston » Wed Jul 11, 2018 11:10 am

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<Research Report>C Suisse Lifts SJM HOLDINGS (00880.HK) Target to $12.2; Rated Outperform

Credit Suisse revised Macau 2018E/ 2019E GGR growth to 19%/ 21% from 22%/ 20% to factor in weaker VIP but stronger mass.

The research house expected SJM HOLDINGS (00880.HK) to see rises in VIP and mass market shares in 2Q, riding on seasonal positives.

The rating of SJM HOLDINGS was retained at Outperform with target price raised to $12.2 from $11.8 on room for re-rating.

Source: AAStocks Financial News
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