Sands China 1928

[winston]

not vested

DJ MARKET TALK: Sands China Down 5.4% But Accumulate On Dips -CIMB

1347 [Dow Jones] Sands China (1928.HK) falls 5.4% to HK$21.05, leading Macau casino operators broadly lower, after it reports that 2Q net income fell 40% on-year to $160.5 million.

There's also chatter that Macau's gaming revenue will register its first-ever on-year decline in July.

CIMB says Macau gaming stocks are unlikely to outperform in the near term, due to macro headwinds and likely weak July/August GGR, but Sands China is trading at 9X FY13 EV/EBITDA, which it believes already factors in these upcoming challenges.

While the share price is likely to be volatile, "we would begin to accumulate on dips given Sands China's strong long-term position in Macau." Galaxy Entertainment (0027.HK), Wynn Macau (1128.HK) and SJM Holdings (0880.HK) are all falling at least 2.0%.

Source: Dow Jones Newswire

[winston]

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DJ MARKET TALK: Competition A Concern For Sands China - Macquarie

1125 [Dow Jones] Macquarie says Sands China's (1928.HK) 2Q12 results were relatively uninspiring, but it thinks that the bigger risk in subsequent quarters is that of competition.

It says Sands has added capacity, and is expected to add even more capacity into a market that continues to slow.

"We think this will increase potential for margin deterioration and may disappoint investors that are looking for operating leverage."

Separately, it also thinks revenue performance has started its downward trajectory and will take time to find a floor.

Against this backdrop, while it likes Sands from the perspective of a patient investor, the stock may show greater volatility in the near term.

Macquarie keeps its Neutral view on Sands China with a target price of HK$22.50. The stock rebounds 3.5% to HK$21.90 after falling to a 2012 low Thursday post-results.

Source: Dow Jones Newswire

[winston]

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SANDS CHINA LTD (01928) kept OW, TP reduced to $33.6 by HSBC

SANDS CHINA LTD (01928) reported 10% increase in EBITDA to US$429 million, but it still came below first-quarter record of US$451 million and HSBC's estimate of US$485 million, the bank said in a report.

Non-cash impairment for site 7-8 even delivered a loss of US$100 million.

Macau gaming business keeps slowing down on subdued economy growth in China, but the casino opening in Cotai, accommodated with 200 gaming tables and 1000 gaming machines, would boost EBITDA growth by 100% and become a catalyst for SANDS CHINA LTD's profit growth in 2013.

HSBC lowered SANDS CHINA LTD's EBITDA for 2012-13 by 9% and 8%.

As the revenue of the group is expected to pick up along with Chinese economy recovery, SANDS CHINA LTD was kept Overweight with target price reduced mildly from $33.36 to $33.69.


Source: AAStocks Financial News

[winston]

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SANDS CHINA LTD (01928) TP cut to $28 by Citi on weakened 2Q results

Citigroup cut SANDS CHINA LTD (01928)'s earnings forecast for 2012-2014 and thus its target price was lowered from $30 to $28.

The move reflected weakened second-quarter result and expansion of Cotai Central project.

The spot price of SANDS CHINA LTD represented 9.7x to EBITDA with a payout ratio of 5%, providing a buy opportunity for investors.

The management of SANDS CHINA LTD believed EBITDA profit margin will rise from 19.5% in the second quarter to 30% upon completion of the project.

According to the data from Citigroup, SANDS CHINA LTD's market share increased from 17.7% in the second quarter to 21% in July, demonstrating Cotai Central is enlarging such ratio for the company.

The opening of Cotai Central Phase 2 on 20 September is expected to bring 2500 hotel rooms, 200 gaming tables and 1500 slot machines, luring new visitors to the area.

By that time, SANDS CHINA LTD may make up 40% of Macau gaming industry.


Source: AAStocks Financial News

[winston]

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Financial Highlights:

• We generated an all-time half year record of US$873.0 million (HK$6,771.7 million) of adjusted EBITDA across all our Group properties, an increase of 15.6% compared to US$754.9 million (HK$5,875.2 million) in the first half of 2011.

• Total net revenues for the Group increased 23.7% to US$2,920.5 million (HK$22,653.7 million) in the first half of 2012, compared to US$2,360.8 million (HK$18,373.4 million) in the first half of 2011.

• Profit for the Group decreased 18.5% to US$439.8 million (HK$3,411.4 million) in the first half of 2012, compared to US$539.5 million (HK$4,198.8 million) in the first half of 2011.

Excluding impairment losses related to Parcels 7 and 8 and the closure of the ZAiA show at The Venetian Macao, and pre-opening expenses related to Sands Cotai Central, adjusted profit increased 20.3% to US$675.8 million (HK$5,242.0 million) in the first half of 2012, compared to US$561.7 million (HK$4,371.5 million) in the first half of 2011.

http://www.hkexnews.hk/listedco/listcon ... 827085.pdf

[winston]

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<Post-Result>SANDS CHINA LTD (01928.HK) challenges HK$27 on earning 19% less in 2H12, shouldering selling pressure again

SANDS CHINA LTD (01928.HK)'s interim profit slipped nearly 19% to US$440 million with earnings per share US5.46 cents.

Its total revenue during the interim period jumped 24% to US$2.92 billion.

The stock went down after midday after gaining 0.3% amid range-bound movements in early session.

It was once as low as HK$27.05. It was last at HK$27.2, retreating 1.4%. Volume amounted to HK$3.44 million shares.

Source: AAStocks Financial News

[winston]

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Sands China Sees Macau Pick Up, Says No Illegal Activity By Vinicy Chan

http://www.bloomberg.com/news/2012-08-2 ... ivity.html

[winston]

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CS: SANDS CHINA LTD (01928.HK) retained Neutral, recommends to take profit first

SANDS CHINA LTD (01928.HK)'s Cotai Central Phase I opening in April, boosted its market share by 2.5 percentage points, but cannibalisating against other existing properties, such as Venetian Macao and Four Seasons, Credit Suisse said in a report.

The stock has surged 39% from previous trough.

The bank recommended investors to take profit first and wait for better entry.

SANDS CHINA LTD is retained Neutral with target price unchanged at $25.6.


Source: AAStocks Financial News

[winston]

not vested. Will it cannibalize it's existing business ?

SANDS CHINA LTD (01928.HK) invests US$2.5B in new casino in Macau
2012-09-20

SANDS CHINA LTD (01928.HK), billionaire Sheldon Adelson’s Macau casino operator, plans to invest US$2.5 billion in developing its fifth holiday resort in the territory, where gaming revenue is expected to jump to US$100 billion by 2020.

Adelson said in a press conference today that constructions of the project on Macau’s Cotai strip will begin in 60 days.

The project will have 3000 hotel rooms and family-oriented facilities to attract middle class in China.

The new project will have an Eiffel Tower replica.


Source: AAStocks Financial News

[winston]

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SANDS CHINA LTD (01928.HK) maintained Buy with TP lifted to $32.5 by BofA ML

Phase IIA of Sands Cotai Central, developed by SANDS CHINA LTD (01928.HK), opens with a casino featuring Polynesia and having 1,300 slot machines, said Bank of America Merrill Lynch.

The new casino is sized 105,000 square feet and looks more spacious.

Phase IIB will open in October.

SANDS CHINA LTD was maintained Buy with target lifted to $32.5 from $29.

Source: AAStocks Financial News