SJM Holdings 880 / Stanley Ho

[winston]

Not vested.

STOCK ALERT - Macau casino operator SJM opens flat vs IPO price in HK debut

HONG KONG (XFN-ASIA) - SJM Holdings (880.HK), a Macau gaming operator, opened at 3.08 hkd in its Hong Kong trading debut, unchanged from its IPO price.

The company, which is controlled by tycoon Stanley Ho and runs several casinos in Macau, was originally to have listed on July 10 but it put back the date to await the outcome of a legal effort by Ho's estranged sister Winnie to block the IPO.

After the delay the retail tranche of SJM's offer was just 53 pct subscribed. The company gave investors who had subscribed for shares before the listing delay the opportunity to withdraw their applications.

The IPO raised 3.85 bln hkd from the sale of 1.25 bln shares.

The High Court yesterday rejected Winnie Ho's appeal against the listing.

[winston]

Not vested in SJM. Vested in Shun Tak who owns some SJM ( 10% ? )..

SJM still winning

SJM Holdings (0880) said its interim net profit was up 8.1 percent to HK$571 million, or 15.2 HK cents per share, thanks to good performance in Casino Grand Lisboa.

Gaming revenue dropped 4.5 percent to HK$15.4 billion, compared with last year's HK$16.18 billion, owing to a setback of VIP gaming operation by 12 percent. VIP operations recorded sales of HK$9.278 billion versus last year's HK$10.55 billion.

No interim dividend was declared.

[winston]

Grand Lisboa profit surge lifts SJM first half above forecast
BenjaminScent

Stanley Ho Hung-sun's SJM Holdings (0880) reported first-half net profit rose 8.1 percent, beating internal earnings forecasts, after a surge in contributions from the company's flagship casino, Grand Lisboa.

Net profit climbed to HK$571 million, from HK$528.4 million the previous year.

SJM set a profit forecast of "not less than HK$559 million" for the period at the time of its initial public offering in July.

The group's adjusted earnings before interest, taxes, depreciation and amortization for the six months ended June 30 jumped 27.4 percent to HK$981.3 million. Revenue fell 4.5 percent to HK$15.45 billion.

No interim dividend was declared.

Revenue from SJM's mass-market gaming operations rose 9 percent to HK$5.68 billion, following the opening of casino operations at Ponte 16 in February.

Pre-tax profit from Grand Lisboa soared sixfold to HK$810 million, from HK$134.9 million during the same period last year, despite the increasingly competitive industry environment.

SJM chief executive Ambrose So Shu- fai said progress is continuing on the conversion of the former New Yaohan department store site into Oceanus, a new casino targeting day-trip visitors that will be directly connected to the Macau ferry terminal.

[winston]

SJM Falls Most Since July as China Keeps Macau Travel Curbs By Chia-Peck Wong

Jan. 12 (Bloomberg) -- SJM Holdings Ltd., billionaire Stanley Ho’s casino holding company, fell the most since it listed in Hong Kong in July after China failed to relax Macau travel restrictions.

SJM fell as much as 14 percent, the most since it began trading July 16. It was 11 percent lower at HK$1.66 at 11:20 a.m. in Hong Kong. Galaxy Entertainment Group Ltd., the Macau casino operator controlled by billionaire Lui Che-woo, fell as much as 17 percent, the most in two months, to HK$1.20. It was 15 percent lower at HK$1.23.

Before today’s decline, SJM had gained 13 percent since Dec. 29 amid expectations China will relax restrictions on Chinese residents visiting Macau when Vice President Xi Jinping visited the city starting on Jan. 10. Xi instead urged Macau to diversify its economy, the South China Morning Post reported today.

“Everyone knows” Macau needs to diversify, Gabriel Chan, a Hong Kong-based analyst at Credit Suisse, said by phone today. “The immediate need is to help the labor market that’s been deteriorating because a lot of the casinos are laying off people. There was nothing specific to help” Macau.

China has restricted travel by its residents to Macau, the only Chinese region where casinos are legal, since early last year to limit growth in high-roller gambling.

Among the measures China has taken was restricting residents of Guangdong, the southern Chinese province bordering Macau, to one visit every three months starting from October 2008, instead of a trip once every two months.

Melco International Development Ltd., a shareholder in the casino venture between Australian billionaire James Packer and Stanley Ho’s son Lawrence Ho, declined as much as 12 percent. It traded 11 percent lower at HK$2.45.

[winston]

DJ MARKET TALK: Citi Hikes SJM To Buy From Sell; Target HK$2.35

1036 [Dow Jones] STOCK CALL: Citigroup upgrades SJM Holdings (0880.HK) to Buy from Sell, raises target to HK$2.35 from HK$1.70; says it will be in net cash position by 2010, its 2008 debt-to-EBITDA ratio at 3X lowest vs peers' average at 8.6X.

"We view that SJM does not need to raise any debt until M&A opportunities arise." Expects company to be one of leaders if there's any industry consolidation with its strong balance sheet, solid operation. Stock flat at HK$1.60

[winston]

Bets are off for SJM over Lisboa

SJM Holdings, controlled by Macau casino tycoon Stanley Ho Hung-sun, has scrapped a HK$4.7 billion plan to buy the Hotel Lisboa and a development site in the city from its parent because of the financial crisis.

While the group's internal financial resources are sufficient to complete the acquisition of the two properties, the proposed redevelopment of the Lisboa site would have imposed an unnecessary burden on its financial resources, SJM said in a filing with the Hong Kong stock exchange.

SJM and parent Sociedade de Turismo e Diversoes de Macau will instead develop the Hotel Lisboa site jointly. This won't happen for some time though because of market conditions, SJM said.

Casino revenue in Macau slumped 15.5 percent last month from a year earlier, Portuguese news agency Lusa reported this month, citing data collected from operators.

BLOOMBERG

[winston]

SJM earnings plunge on slowdown by AlfredLiu

SJM Holdings (0880), gaming flagship of casino mogul Stanley Ho Hung-sun, reported 2008 net profit dropped 48.1 percent to HK$796.1 million, after gaming revenues fell.

"Our results in 2008 reflected the general economic conditions and specific challenges to our industry that characterized the year, particularly during the second half," Ho, chairman of the company, said in a statement.

Gaming revenue dropped 12.9 percent to HK$27.99 billion because of a decline in VIP gaming revenue, caused principally by reduced VIP chips purchases amid the deteriorating economic conditions.

VIP gaming operations accounted for 57.1 percent of the company's total gaming revenue, while 39.5 percent came from mass-market table gaming operations.

A final dividend of 6 HK cents was proposed.

Earnings before interest, taxes, depreciation and amortization fell 22.4 percent to HK$1.6 billion.

The company said Casino Grand Lisboa's performance was beyond its expectations, with revenue increased 80 percent to HK$8.61 billion, while EBITDA jumped 41 percent to HK$1.4 billion.

The firm sees no need for borrowing in the coming year, as total loan facilities available to the company were HK$6.6 billion, of which about HK$656 million was undrawn.

Chief executive Ambrose So Shu-fai remained upbeat.

"We will continue to exploit opportunities for growth based on our excellent relationships with gaming promoters while capitalizing on our balance sheet flexibility," So said.

[winston]

SJM vow as rival cuts jobs by Alfred Liu, The Standard

Casino operator SJM Holdings (0880) said it has no plans to lay off staff, as rival Las Vegas Sands looks to slash up to 4,000 more jobs in Macau.

"We don't need to cut jobs. We will increase staff efficiency," SJM chief executive Ambrose So Shu-fai said after the company's first annual general meeting since listing last year.

The company intends to freeze recruitment.

Las Vegas Sands, however, plans to cut between 3,000 and 4,000 jobs by September, on top of the company's workforce reduction to 17,500 from close to 20,000 at its peak in Macau, Bloomberg reported.

The casino company, controlled by billionaire Sheldon Adelson, halted work on a 20,000-room complex of hotels and casinos at Macau's Cotai Strip and shelved projects in the United States.

Credit Suisse analyst Gabriel Chan said the further layoffs may be in response to the opening of City of Dreams on the Cotai Strip, by Melco Crown Entertainment, next month.

"The worst is over for the Macau gaming market as revenue declines are narrowing now," Chan said.

For the overall Macau gaming market, earnings may start rising again from August or September, he said.

So said SJM's monthly revenue rose 5 percent for the first fourth months this year from the same period a year ago.

"The first quarter has shown quite good signs," he said. Earnings before interest, taxes, depreciation, and amortization increased 10 percent in the same period. Cash flow increased 10 percent from the previous year. So said SJM has a 30 percent share, the largest, in the Macau gaming business.

The company is not worried about City of Dreams affecting its business and bad debts are not on the rise, he added.

Chan believes SJM revenue growth was spurred by the Grand Lisboa Hotel, which opened last December. SJM shares rose 2.82 percent to HK$2.55.

[winston]

I thought I know the Casinos business very well, having frequented quite abit of casinos. Suddenly, after investing you learned about things like bad debt from the junket operators. Do you know the drivers of the industry that you are investing in ? Not vested.

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DJ MARKET TALK: CS Starts SJM At Outperform, Target HK$4.60

0920 [Dow Jones] STOCK CALL: Credit Suisse starts SJM Holdings (0880.HK) at Outperform, target price at HK$4.60 based on 8.5X FY10 EV/EBITDA. Says "the empire strikes back" with opening of two new casinos - L.Arc, Oceanus - in 2H09, should help consolidate SJM's leadership position, raise overall margin; SJM also streamlining product offering by closing some unprofitable casinos.

Says strong balance sheet "another core virtue," with SJM currently only operator among 6 concessionaires with financial ability to conduct acquisitions, pay dividend. Adds, any acquisition in Cotai, at reasonable prices, will trigger re-rating as will speed up company's presence in Macau's new gaming center. Stock ended flat at HK$2.66 yesterday.

[winston]

DJ MARKET TALK: Citi Ups SJM Hldgs Target To HK$4.10 From HK$2.75

0700 [Dow Jones] STOCK CALL: Citigroup raises SJM Holdings (0880.HK) target price to HK$4.10 from HK$2.75 after increasing 2009E-11E earnings forecasts 23%-35% on revised market share estimates. Says "impressed" by casino operator's 4M09 market share gain, with market share by gross gaming revenue rising to about 30% from about 27%, despite Macau gaming revenue slipping an estimated 12% to-date.

Says based on channel checks, appears loyal Chinese customer base continues to embrace SJM's flagship products - Casino Lisboa and Grand Lisboa; adds, not easy for competitors to lure these players away from SJM. Expects SJM's market share to stabilize at 30% level after opening of Melco Crown's City of Dreams; raises SJM 2009 market share estimate to 30% from 26%, raises 2010 estimate to 29% from 25%. Keeps at Buy, lowers risk rating to High from Speculative. Shares closed Wednesday +16.2% at HK$3.09.