Golden Finance News| Soochow Securities (Hong Kong) issued research reports, stating that Sands China (01928) achieved a total gambling revenue of 1.68 billion US dollars in 3Q24, recovering to 82.6% of the same period in 19. Among them, VIP/Mass (including slot machines) achieved gambling revenue of 0.18/1.5 billion US dollars, respectively recovering to 40.4%/94.2% of the same period in 19 (according to the Gaming Inspection Bureau data, industry VIP/Mass (including slot machines) respectively recovered to 42.1%/107.1% of the same period in 19).

The bank stated that the company achieved a net income of 1.77 billion US dollars in 3Q24, slightly exceeding the market's expected 1.74 billion US dollars, remaining flat on a quarter-on-quarter basis, recovering to 83.1% of the same period in 19. Among them, gambling/non-gambling businesses contributed 1.34/0.43 billion US dollars, with a quarter-on-quarter increase of 0.5%/2.4%, recovering to 80.2%/97.3% of the same period in 19. The company's gambling business is steadily recovering mainly due to an 11.1% year-on-year increase in Q3 total arrivals in Macau, with an increase in the proportion of high-value customers. The non-gambling business is recovering at a slower pace, mainly due to the continued impact of the Londoner Phase Two renovation project on the company's operation. In the 3Q24 renovation project, the company temporarily closed approximately 2,500 rooms (approximately 63% of The Parisian Macao hotel rooms, 20% of the company's total rooms), and the Pacifica gaming area was closed. The company's management expects to close 3,100-3,200 rooms in Q4, with only about 300 new suites remaining open. The disturbance to operations from the renovation project will peak. Regarding the project progress, the company maintains the guidance that the first hotel tower is expected to be renovated by the end of 24, and the second hotel tower is expected to be renovated by May 25.

The bank maintains the company's net income forecast for 2024-2026 at 7.11/7.9/8.39 billion US dollars and maintains the adjusted property EBITDA forecast at 2.27/2.75/2.97 billion US dollars. The current stock price corresponds to EV/EBITDA for 2024-2026 of 9.6/7.9/7.0 times, respectively. The bank believes that the negative impact peak of the Londoner renovation project on the company's operations is approaching, making the current valuation more attractive. The bank's target price is 25.5 Hong Kong dollars, corresponding to EV/EBITDA for 2024-2026 of 11.6/9.6/8.5 times, maintaining a "buy" rating.