The Zhitong Finance App learned that UBS released a research report stating that the “buy” rating for Sands China (01928) is expected to resume dividends earlier than market expectations. The dividend for the 2024 fiscal year is expected to gradually increase to 1.99 yuan per share. The market generally expects that there will be no dividend in the 2024 fiscal year. It is believed that Sands has sufficient working cash flow to cover the increase in capital expenditure in FY2024 and FY2025. The target price was raised from HK$25.2 to HK$26.9.

The bank believes that since dividend payments were suspended, the valuation discount for Galaxy Entertainment (00027) should be narrowed because, with the support of the continued recovery in demand in Macau, expectations for the resumption of dividends have increased, which also indicates that investors are concerned about the loss of market share or excessive concerns that the second phase of the Londoner transformation under the company may cause.