Citibank: Sands China (01928) recorded an increase in gaming volume in all sectors, maintaining a “buy” rating and a target price of HK$17

The Zhitong Finance App learned that Citi released a research report stating that it keeps the target price of HK$17 at Sands China (01928) unchanged and maintains a “buy” rating. It believes that the company is well positioned and can benefit from a potential recovery in Macau's gaming revenue growth. The stock has a dividend rate of 8.8%, providing investors with certain downside risk protection.

Sands China recorded an increase in gaming volume across all sectors in the third quarter. Property EBITDA rose 23% month-on-month, but 4% lower than the bank's forecast. Encouraged by the bank, the EBITDA profit margin after adjustment for lucky factors increased 0.3 percentage points month-on-month, reflecting the relative discipline of operating expenses and player reinvestment. The bank believes that Londoners are clearly underperforming in the ultra-high-end preferred field sector.

Despite macroeconomic concerns such as China's offshore taxation, management remains confident about Macau's prospects and is optimistic about long-term wealth creation trends in the region. Management expects strong performance in the fourth quarter, mainly due to the successful hosting of the NBA China Games, the continuation of the strength of the National Day Golden Week, and strong seasonal performance likely to occur in December.