[ET Net News Agency, 25 September 2020] HSBC Global Research lowered its target price
for Sands China (01928) to HK$35 from HK$38 and maintained its "buy" rating.
The research house cut its FY2020 GGR growth rate forecast to -80% (from -64%). HSBC
thinks near-term uncertainty in both supply and demand, especially from high-end segments,
will cap the recovery pace.
HSBC said new capacity at the Four Seasons which was scheduled to be added in mid-2020
should put Sands in a good position to capture growth from returning demand, especially in
mass. Renovation work at Sands Cotai Central/Londoner has also sped up as the operator no
longer has to space out the work in fear of disruptions. These should all help to buffer
the social distancing impact on its grind (low end) mass business when visitors come back
to Macau.
HSBC cut its FY2020 and FY2021 EBITDA by 479% and 27%, respectively. (KL)