The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that the weak performance of Sands China (01928) in the third quarter was generally in line with market concerns. The bank currently has a selective and cautious view on Macau Gaming stocks, maintaining Sands China's “plus” rating and target price of HK$17.5. It believes that progressive dividends, a strong balance sheet and still steady free cash flow can support risk return over the next 6 to 12 months.

Sands China's EBITDA for the third quarter after adjusting for luck factors was US$518 million, down 14% year on year and flat month on month, mainly due to a low base for the previous quarter. This figure is 2% lower than the sellers' market estimate of $527 million, but the performance is not too bad compared to the buyers' recent forecast of lower than $500 million.

The bank pointed out that the industry's performance is mediocre, and the sentiment of high-end Chinese consumers and gamblers is still weak, which is disappointing. The bank expects other gaming operators to face similar pressure. It estimates that the industry's EBITDA for the third quarter fell by about 10% year on year, leaving the risk of the market lowering the EBITDA forecast for the second half of the year and the full year of 2027.

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