Overview of results for the first quarter of '24: Net revenue increased 323.7% year over year and 4.5% month-on-month to US$1.86 billion (recovering to 83% in 2019). The VIP business fell 30.2% month-on-month (this business recovered to 24% in the same period in '19; the number of transcoders increased by 23.5%), and the midfield business grew 9.2% month-on-month (high-end midfield grew 2.3% month-on-month to 91% in the same period in '19; Volkswagen midfield fell 2.5% month-on-month to 96% in the same period in '19). In terms of retail business: gross revenue and operating profit decreased by 26% month-on-month, respectively (recovering to 100%/99% in 2019, respectively). The hotel occupancy rate is 96%, and the average price is $199. Adjusted EBITDA decreased 6.7% month-on-month to US$651 million (recovering to 77% in the same period in '19). The EBITDA rate fell 1.3 percentage points month-on-month to 33.9% (promotion expenses remained stable month-on-month, partly affected by Londoners' second phase renovation project). Quarterly net profit increased 3.1% month-on-month to $297 million. First-quarter results were in line with expectations. The Group held approximately $1.61 billion in cash, and net liabilities decreased by $240 million to $6.57 billion.

Performance of casinos: Revenue from The Venetian Macao, The Londoner, The Parisian, Four Seasons Hotel Macau and Paragon Casino, and Sands Macao respectively recovered to 86%, 97%, 51%, 64%, and 50% in the same period in 2019; their adjusted EBITDA was $314 million, $172 million, $71 million, $36 million, and $12 million, respectively (to 87%, 81%, 44%, 42%, and 30%, respectively) in the same period in 2019.

Other highlights: The Londoner's budget for the second phase is $1.2 billion. The renovation/renovation project began in November of last year, and it is planned to redecorate and position the Sheraton and Conrad Hotels and Pacifica Casino; new attractions, restaurants, retail and entertainment products will also be added. The completion dates for the Sheraton and Conrad Hotels are expected to be at the end of 2024 and May 2025, respectively. During the period, the Cotai Arena (the number of shows decreased by 19 compared to the previous month) and 500-600 Sheraton guest rooms were affected by the renovation, and it is expected that more rooms will be affected in the next two quarters. After completion, the potential profitability of Macau Londoners is expected to reach or surpass that of The Venetian Macau; the Group's EBITDA rate is expected to rise to a high of 30%.

Maintaining the purchase rating, target price HK$26.29: Sands China's performance in the first quarter was in line with expectations; as the operator of Macau's largest integrated entertainment resort, the Group has a leading position in the midfield and non-gaming fields. The Londoner Phase II renovation project may have an impact on the Group in the short term, but after completion, it will enhance the Group's competitive advantage and profit margin. We remain confident in the Group's long-term development. We maintain our buy rating and target price is HK$26.29, which corresponds to 14 times the EV/EBITDA in 2024.

Risk factors: We believe the following are some of the more important risks: macroeconomic uncertainty, increased competition due to the completion of new interbank projects, and policy risks.