Sands China 1928

[winston]

not vested

Sands China pays for earnings hit

by Melody Chen

Shares of Sands China (1928) fell up to 3.7 percent to HK$14.92, its lowest since November 2022, after the casino operator reported worse-than-expected second-quarter earnings.

Adjusted property earnings before interest, taxes, depreciation and amortization rose 3.7 percent to US$561 million (HK$4.38 billion), slightly short of an estimate of US$580 million.

Total net revenues increased 8 percent to US$1.75 billion compared to the same period last year, falling short of market expectations of US$1.767 billion.

Net income was US$246 million, up from US$187 million.

Parent company Las Vegas Sands reported that second-quarter capital expenditures amounted to US$285 million, including US$131 million for construction, development and maintenance in Macau.

"Turning to the results in Macau, solid EBITDA was delivered for the quarter despite material disruption at The Londoner Macau," said chairman and chief executive Robert Glen Goldstein.

The Ebitda margin for the parent company's Macau portfolio would have been 32.1 percent in the quarter, down 80 basis points from a year ago, due to the Londoner Grand being renovated and its 1,500 rooms being out of commission, said president Patrick Dumont.

Source: The Standard

https://www.thestandard.com.hk/section- ... rnings-hit

[winston]

not vested

<Research>CLSA Adds SANDS CHINA LTD (01928.HK) TP to $25.8, Drops TPs for Other MO Casinos

2024/10/10

Macau's casinos will begin reporting 3Q24 results at the end of October, CLSA released a research report saying.

The industry's Ebitda is forecasted to fall 10% QoQ to US$1.748 billion as Macau's 3Q24 GGR fell 1.5% QoQ and margin headwinds persisted.

In addition, CLSA added its target price for SANDS CHINA LTD (01928.HK) to $25.8 from $25.1, with rating at Outperform, as market share gains offset margin contraction concerns.

The broker dropped its target prices for other Macau's casinos. The latest ratings and target prices of the sector are listed in a separate table.

Related News: M Stanley Expects MO Casinos' 3Q Property EBITDA to Fall 8% QoQ, Prefers SANDS CHINA LTD/ WYNN MACAU

MGM CHINA (02282.HK) and SANDS CHINA LTD remain the broker's top picks.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Sands China (1928) saw its net profit increase by 16 percent year-on-year in the third quarter to US$268 million (HK$2.09 billion) with revenue edging down 1 percent to US$1.77 billion.

The company hopes that SCL can resume paying out dividends in the upcoming year. The developer's share price rose nearly 4 percent yesterday.

Source: The Standard

[winston]

vested

Sep 27, 2024

MS: Sands China - Multiple Catalysts to Play; Upgrade to OW

We think Sands China is the only company in Macau with identifiable catalysts (reopening of Arena/hotel/casino) as well as step change in dividend boosting 2025 market share and
earnings.

Parent (LVS) buying larger stake should provide downside protection.

1. Dividends to restart in 2025: Prior to Covid, the company consistently paid out DPS of HK$1.99 each year from 2014. Sands' net debt to EBITDA ratio declined from 5.7x at end-2022 to 2.8x at end-1H24, and shareholder equity turned positive in end-1H24, which should enable the company to resume HK$0.70 to HK $1.00 DPS in 2025, implying 4.4% to 6.3% dividend yield. If the company returns to its pre-Covid dividend levels, this would imply a 13% div. yield.

2. Dividend resumption should help valuation multiple: Sands China stock used to trade at a 17% premium over Galaxy and other peers. This eroded as the company suspended dividends and lost some market share amidst the slow recovery of the grind mass business.

We expect both Sands and Galaxy to see market share improvements in 2025 but we believe dividend resumption in 2025 for Sands in particular will help drive down its valuation discount vs. peers.

3. 3Q24 peak disruption likely resulting in market share improvement from 4Q24 onwards, in our view, although we expect Sands' 4Q results to be hampered by lower turnover rent. We predict Sands' Mass GGR market share to recover from 24.9% in 2Q24 to 26.0% in 2025.

4. LVS continues share buyback: LVS bought 1.2% in Dec 2023 and another 0.74% in Sept 2024. We think LVS could continue to buy until its ownership stake reaches 75%.

We switch preference from Galaxy to Sands: Despite Galaxy's near-term momentum (gaining share and changing to regular dividend), we think Sands China provides more compelling upside.

We expect Galaxy to continue investing in its Phase 4 development over the next two years, meaning no leverage improvements are likely, and with the dividend story behind us, the upside catalyst is not as strong as it is for Sands.

[winston]

Sands China (1928 HK) 4Q24: Normalised EBITDA Up 1% Qoq;

Expect The Londoner To Return To Full Room Inventory By May Golden Week

Despite being impacted by the renovation of The Londoner, SC saw 4Q24 normalised EBITDA increase 1% qoq and recover to 75% of 2019’s level.

GGR decreased 3% qoq and market share declined 1.4ppt qoq to 22.8%.

Looking ahead, management expects The Londoner’s full inventory to be back online by the May Golden Week.

For non-gaming, management still believes that SC is well-positioned for the retail sector despite the weakness in 4Q24. Maintain BUY; trim target price by 3% to HK$27.70.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

SANDS CHINA LTD Erodes ~5% as 4Q24 Adj. Property EBITDA Dips 12.7%

Total net revenues for SANDS CHINA LTD decreased 5% YoY to US$1.76 billion for 4Q24, while net income fell by 17.7% to US$237 million. Adjusted property EBITDA was US$571 million, down 12.7% YoY.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Stronger traction by 2Q25

Macau GGR +0.8% y/y in Mar, taking 1Q25 GGR to +0.6%

GGR growth to accelerate in 2H25, supporting c.6% growth in FY25; benefits Sands

China as Londoner Grand rollout by 2Q25 adds hotel capacity and lifts high-margin premium mass growth

Minimal YTD GGR expansion in Macau and its tough base may lead to a low single-digit dip in 1Q revenue; we lower our 3-year earnings CAGR to 27% (from 36%), still ahead of most peers

With new TP of HKD26.62 and likely a better trend for Sands China starting 2Q25, we maintain BUY

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=24647

[winston]

vested

<Results>SANDS CHINA LTD 1Q Adj. Property EBITDA Slips 12.3% YoY; Net Income Drops ~32% YoY

SANDS CHINA LTD (01928.HK) announced its consolidated financial results for the first quarter ended March 2025.

In accordance with the US GAAP, net revenues amounted to US$1.7 billion, down 5.7% YoY, while net income was US$202 million, down nearly 32% YoY.

Adjusted property EBITDA was US$535 million, down 12.3% YoY.

During the period, interest expense, net of amounts capitalized, was US$174 million, compared to US$182 in the same period last year.

Its weighted average borrowing cost was 4.9%, compared to 5% in the same period of 2024.

Furthermore, capital expenditures during the first quarter totaled US$379 million, including construction, development and maintenance activities of US$197 million in Macao.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>CLSA: SANDS CHINA LTD (01928.HK) 1Q Hold-adjusted EBITDA Misses Forecasts

SANDS CHINA LTD (01928.HK) 's 1Q25 total net revenue amounted to US$1.709 billion, down 4% QoQ, while gross gaming revenue fell 2% QoQ to US$1.609 billion, according to CLSA's research report.

Property EBITDA declined 6% QoQ to US$535 million.

The hold-adjusted EBITDA dropped 8% QoQ to US$545 million, in line with market consensus, but 4% below the broker's forecast.

Therefore, CLSA kept rating on SANDS CHINA LTD at Outperform, with a target price of $18.7, and expected the Company's operations to return to normal levels in 2026.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>HSBC Research: SANDS CHINA LTD (01928.HK) 1Q Results Miss; TP Dropped to $16

SANDS CHINA LTD (01928.HK) 's 1Q25 property EBITDA was 4% below market consensus, with revenue and margin missing expectations, HSBC Global Research issued a research report saying.

Based on the lower-than-expected 1Q25 results, the broker lowered its FY2025-FY2026 EBITDA forecasts by 10-13%, and forecasted EBITDA YoY growth to turn positive only in 4Q25.

HSBC Global Research dropped its target price for SANDS CHINA LTD to $16 from $19, with rating kept at Hold, due to the lack of short-term catalysts as it expected that SANDS CHINA LTD will take time to improve its results.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN