[ET Net News Agency, 23 January 2020] UBS Global Research raised its target price for
Sands China (01928) to HK$41.9 from HK$39.7 and maintained its "neutral" rating.
The research house tweaked its Macau sector GGR (gross gaming revenue) assumptions, with
a 3ppt increase in mass GGR and a 2ppt cut in VIP GGR. UBS expects Sands China to benefit
from a solid mass market in 2020, supplemented by the upcoming railway extension to
Hengqin and Sands' new high-quality hotel rooms and suites. However, related disruption
from renovation could partially offset potential growth this year.
It said Sands China trades at 14.4x 2020 EBITDA, compared with a seven-year average of
14.3x, which appears fair. (KL)