Zhitong Finance learned from the app that CICC released a research report stating that it maintains a "outperform" rating on Las Vegas Sands China (01928) and lowered its adjusted EBITDA forecast for 2024 and 2025 by 3% and 2% to USD 2.488 billion and USD 3 billion, respectively. This is based on the impact of the renovation of the Londoner buildings on the company's business, and the target price is lowered by 15% to HKD 22.8.

The bank stated that Las Vegas Sands China announced its 2Q24 results through its parent company, Las Vegas Sands, on July 25: net revenue was USD 1.754 billion, which is 82% of 2Q19 (up 8% year-on-year, down 3% quarter-on-quarter), and adjusted property EBITDA was USD 0.561 billion, which is 73% of 2Q19 (up 4% year-on-year, down 8% quarter-on-quarter), lower than the consensus estimate of USD 0.583 billion among institutions. CICC attributes the performance of Las Vegas Sands China to: 1) The Londoner and Sands Cotai Central are being renovated. The gambling area of The Londoner has been closed since May, and about 1,500 hotel rooms were offline in 2Q24; 2) Mid-market table games and slot machine revenues have recovered to 92% and 103% of 2Q19, respectively.

The key points of the management's earnings conference are as follows: 1) The management expects that the company's business volume will continue to be disrupted in 2H24. The Londoner, Sands Cotai Central, and The Pacifica at The Londoner (scheduled to close in May 2024) will be completed and reopen at the end of 2024, while the second phase of The Londoner will reopen in May 2025. 2) The management noticed a trend of business differentiation, with the high-end segment continuing to perform strongly while the mass-market segment lagging behind. Despite the government's introduction of a series of positive travel policies (such as adding 10 mainland cities to open up for "individual travel" to Hong Kong and Macau), visitor arrivals to Macau are still weak due to seasonal factors. 3) The high-end segment (which has recovered to 106% of 2Q19, down 4% quarter-on-quarter) continues to lead the industry's recovery, while the mass-market segment (which has recovered to 91% of 2Q19, down 3% quarter-on-quarter) is affected by the closure of The Pacifica at The Londoner.