SJM Holdings 880 / Stanley Ho

[winston]

not vested

SJM take halves as players stay away

Macau casino operator SJM Holdings (0880) said first-half net profit more than halved to HK$17.91 billion from a year earlier amid shrinking market share and VIP business.

Group revenue slipped 40.1 percent to HK$266.11 billion as gaming revenue tumbled 40.3 percent, worse than Macau's average gaming revenue for all casino operators, down 37 percent in the six months to June.

VIP gaming operations plunged 48.7 percent to HK$142.26 billion, accounting for 54.1 percent of total gaming revenue compared with 62.8 percent a year earlier.

Gaming revenue from mass market table gaming operations dropped 26.8 percent. The company declared an interim dividend of 10 cents, compared to 22 cents a year earlier.

"We remain optimistic about the future of the Macau market," said Ambrose So Shu-fai, chief executive of SJM Holdings, in a statement.

"We are proceeding with construction of the Lisboa Palace integrated resort on Cotai, on which substantial progress has been made, and we are on target for completion in 2017," he said.

SJM shares dropped 1.67 percent to HK$8.86 before results came out yesterday.

Source: The Standard HK

[winston]

vested

Losing feeling goes on for SJM as high rollers retreat

Macau casino operator SJM Holdings (0880) suffered an 81.4 percent plunge in net profit in the third quarter to HK$285 million from a year ago, as its market share shrank and its VIP room business took a tumble.

Between July and September, gaming revenue fell 37.9 percent to HK$11.2 billion. Adjusted earnings before interest, tax, depreciation and amortization halved to HK$884 million from a year ago.

SJM also incurred a HK$250 million loss from the disposal of one of its investment instruments. Excluding the loss, quarterly net profit would have been HK$535 million, down 65 percent from a year back.

Its flagship Casino Lisboa, which contributed about 30 percent to total gaming revenue, also suffered a 48.5 percent fall in turnover to HK$3.54 billion.

Meanwhile, the occupancy rate at the Grand Lisboa Hotel slipped to 85 percent from 90.5 percent. Its room rate stood at HK$1,743, down by HK$518 from a year earlier.

The group is largely counting on the revenue of its satellite casinos. More than half of casino earnings came from 15 third-party-promoted establishments.

For the three quarters, net profit slumped 61.8 percent to HK$2.08 billion from the same period in 2014. Adjusted Ebitda tumbled 49.2 percent to HK$3.15 billion.

Chief executive Ambrose So Shu-fai said conditions are challenging. SJM has already seen a decline in gaming revenues for six consecutive quarters. But the group has a strong balance sheet and remains optimistic.

SJM shares closed at HK$6.61, up 3.4 percent.


Source: The Standard

[winston]

vested

VALUATION/RECOMMENDATION

Maintain BUY as SJM still has the cheapest valuation.

Although SJM delivered disappointing results for 3Q15, its cheap valuation and lowest play casino among the Macau casino concessions will make it an attractive name in the long run.

Management believes any loosening of transit visa policies in Hong Kong (an effort to revive the depression in the retail market) by the Chinese government will in turn be beneficial for Macau.

Going forward, we expect profits to pick up in 2016 with EBITDA growing 10.4% yoy and revenues increasing 5.1% yoy as the mass market continues to stabilise and recover.

Maintain BUY with target price of HK$8.40, based on SOTP valuation, with an implied 6x 2015F EV/EBITDA on existing operations (trading at 23.1% below the mean and within historical band) plus the DCF on new casinos.

Source: UOBKH

https://research.uobkayhian.com/content ... 829e492b8d

[winston]

not vested

<Research Report>Credit Suisse: SJM HOLDINGS (00880.HK) 3Q EBITDA Below Estimates; TP Cut to $8.6

Credit Suisse, in its report, stated that SJM HOLDINGS (00880.HK) 's EBITDA in the third quarter tumbled 50% yearly to $884 million, 10% below the broker's and the market's estimates.

In the broker's view, the disappointing results should be attributable to increased cash rebate to players at old Lisboa and worse-than-expected market share loss at Grand Lisboa.

The broker lowered SJM HOLDINGS' earnings forecast in 2015-2017 by 15%, 6% and 6%.

Its target price was trimmed from $8.8 to $8.6.

Source: AAStocks Financial News

[winston]

vested

SJM in talks over $25b loan facility

SJM Holdings (0880) is in discussions over a construction loan that could be worth as much as HK$25 billion, according to Reuters.

The loan may consist of four-year and six-year terms, while details are not finalized yet, Reuters said.

SJM shares ended 3.04 percent higher yesterday at HK$4.74.

The Macau casino operator, chaired by tycoon Stanley Ho Hung-sun, started building its Lisboa Palace, an integrated resort on Cotai, in February 2014.

Construction cost is estimated to reach HK$30 billion, while the project is expected to be completed in 2017.

More than 90 percent of the total area will comprise non-gaming facilities. Many of Macau's casino operators are expanding the non- gaming business hoping to attract more tourists and offset the sliding revenue from the gaming sector.

Last year, Macau saw gaming revenue from the VIP market plunge 39.9 percent from a year earlier as a result of China's anti-graft moves and economic slowdown. But the sluggish business performance does not seem to have an impact on generosity to employees.

Melco Crown Entertainment announced a one-month discretionary bonus for its non-management staff yesterday. The bonus will be paid out before Chinese New Year, the casino operator said.

Source: The Standard

[winston]

vested

SJM in talks over $25b loan facility

SJM Holdings (0880) is in discussions over a construction loan that could be worth as much as HK$25 billion, according to Reuters.

The loan may consist of four-year and six-year terms, while details are not finalized yet, Reuters said.

SJM shares ended 3.04 percent higher yesterday at HK$4.74.

The Macau casino operator, chaired by tycoon Stanley Ho Hung-sun, started building its Lisboa Palace, an integrated resort on Cotai, in February 2014.

Construction cost is estimated to reach HK$30 billion, while the project is expected to be completed in 2017.

More than 90 percent of the total area will comprise non-gaming facilities. Many of Macau's casino operators are expanding the non- gaming business hoping to attract more tourists and offset the sliding revenue from the gaming sector.

Last year, Macau saw gaming revenue from the VIP market plunge 39.9 percent from a year earlier as a result of China's anti-graft moves and economic slowdown. But the sluggish business performance does not seem to have an impact on generosity to employees.

Melco Crown Entertainment announced a one-month discretionary bonus for its non-management staff yesterday. The bonus will be paid out before Chinese New Year, the casino operator said.

Source: The Standard

[winston]

vested

SJM Tumbles On Q4 Profit Margin Miss, Dividend Cut

By Shuli Ren

VIP gaming jumped 16%, while the more profitable mass market segment fell 4% in December quarter.

Profit margin at SJM fell 3.2 pecentage points to 11.1%.

It sits on HK$16 billion, sufficient to fund a significant portion of the HK$23 billion required to build its new GL Palace, scheduled for completion at the end of 2017.

Source: Barron's Asia


http://blogs.barrons.com/asiastocks/201 ... idend-cut/

[winston]

vested

SJM hit in mass market gamble

SJM Holdings (0880) said net profit in the first quarter plunged 44.1 percent to HK$561 million from a year earlier.
Gaming turnover dropped 22.8 percent to HK$11.02 billion.

All of its three main sources of revenue fell: VIP by 29.2 percent to HK$5.61 billion; mass market by 14.9 percent to HK$5.15 billion; and slot machines by 14.3 percent to HK$267 million.

The operator removed 161 VIP ables, but increased the number of mass market tables and slot machines.

The adjusted margin of earnings before interest, tax, depreciation and amortization also narrowed to 7.5 percent from 8.6 percent.

SJM also earned hotel, catering and related services revenues of HK$132 million, down 16.5 percent year on year. The average occupancy rate at its Grand Lisboa Hotel chalked up gains to hit 91.6 percent from 81.4 percent, as it cut the average room rate by 33.8 percent to HK$1,660 per night.

SJM's first-quarter gaming revenues accounted for 20.2 percent of Macau's total.

Source: The Standard

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vested

Lisboa Palace to open in 2017

by Watson Tan

Macau casino operator SJM (0880) says its Lisboa Palace casino is tipped to open in the second half of 2017 to coincide with the launch of the Hong Kong- Zhuhai-Macau Bridge, in a bid to lure more customers, chief executive Ambrose So Shu-fai said yesterday.
Speaking after the general meeting, So said the new project may have five to six hundred gaming tables.

Also SJM's Oceanus, which is being rebuilt, is scheduled to reopen in the fourth quarter of this year and it is currently hiring staff. The operator has cut hotel room prices by 10 percent since last year, and So said no further cuts are expected.

The occupancy rate of Grand Lisboa reached 90 percent, which is expected to rise in summer. When asked about the soon-to-open Wynn Palace of Wynn Macau (1128) and Parisian of Sands China (1928), So said these two new venues would not have a huge effect on the operator's revenues due to the sluggish market.

Recently the decline in revenue of Macau's gaming industry has been narrowed, and the situation will gradually improve in the next six months, he said.

The gaming operator reduced 30 to 40 percent of its VIP tables, and increased its mass market tables, with the ratio of the two now equal. Despite reports of phone betting at VIP tables, So said a notice had been sent to all VIP tables concerning violations.

Source: The Standard

[winston]

vested

SJM interim net falls

by Koey Yip

Macau casino operator SJM Holdings Ltd (0880) said first-half to June net profit fell by 38.7 percent to HK$1.1 billion, while earnings per share plunged by 38.8 percent to 19.4 HK cents.

It said earnings before interest, tax, depreciation and amortization fell by 27.8 percent to HK$1.63 billion.

Gaming revenue tumbled by 20.7 percent to HK$20.88 billion, with mass market table gaming 11.5 percent lower, while VIP gaming down by 28.5 percent.

In its hotel operations, Hotel Grand Lisboa's occupancy rate rose by 10.4 percent in the first half to 90.5 percent from a year earlier. However, the average daily room rate fell by 32.9 percent to HK$1,609.

Despite the profit fall, SJM has proposed an interim dividend of 6 HK cents, 40 percent lower from a year earlier.

Source: The Standard