Morningstar - SJM Holdings Limited (00880) SJMâ€™s Fourth-Quarter Results Hurt by Provision and VIP Market Share Loss to New Capacity

Report

Morningstar

Chelsey Tam

EUR 100.00 For Business Accounts Only

SJMâ€™s Fourth-Quarter Results Hurt by Provision and VIP Market Share Loss to New Capacity

We maintain narrow-moat SJMâ€™s fair value estimate at HKD 7.7 per share. Adjusted EBITDA in the fourth quarter was HKD 846 million, up only 1% year over year and down 8% sequentially due to a HKD 109 million provision against a receivable from a gaming promoter at the satellite Casino Eastern. Excluding the provision, adjusted EBITDA would have grown 14% year over year and 4% sequentially. Net revenue in the fourth quarter was up 5% year over year and 2% sequentially. Dividend payout ratio for th...

01/03/2019 14 EN

Underlying

SJM Holdings Limited

SJM Holdings is an investment holding company based in Hong Kong. Co. is the holding company of Sociedade de Jogos de Macau and is engaged in the development and operation of casinos and related facilities in Macau Special Administrative Region, the People's Republic of China. Co.'s casinos are located in prime locations on the Macau Peninsula and Taipa Island. Gaming operations are comprised of VIP table gaming, Mass Market table gaming and slot machines. Co. is organized in two segments: Gaming Operations (operation of casinos and related facilities); and Hotel and Catering operations (hotel, catering and related services).

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HK0880043028 Hong Kong Stock Exchange Hong Kong

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Chelsey Tam

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SJMâ€™s Fourth-Quarter Results Hurt by Provision and VIP Market Share Loss to New Capacity

Sjm Holdings Limited: 2 directors

Increased risk weighs on SJM HOLDINGS LIMITED, penalising its rating down to Slightly Negative

Morningstar | Lifting SJMâ€™s FVE by 30% to HKD 11.60 to Reflect Higher ROIC for Grand Lisboa Palace

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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