[ET Net News Agency, 3 September 2020] Morgan Stanley raised its target price for SJM
Holdings (00880) to HK$12 from HK$11 and maintained its "overweight" rating.
The research house said SJM also gained meaningful market share in GGR (+18ppts), helped
by mass and slot, but this was driven by locals, which may not be replicable in the future
as the impact of local demand should shrink when Chinese visitation recovers after IVS
(Individual Visit Scheme) reinstatement and all customers now need to present negative
test results to enter casinos (locals did not need to in 2Q).
Morgan cut its 2020 net revenue by 39% and opex by 13%. As a result, its LBITDA estimate
and net loss estimates for 2020 are 172% and 46% larger. (KL)