[ET Net News Agency, 17 April 2018] CICC Research maintained its target price for SJM
Holdings (00880) at HK$7 unchanged, and reiterated its "hold" rating.
The research house expects adjusted EBITDA for SJM to be HK$861mn (+2% QoQ & +2% YoY)
slower than the industry's +7% QoQ & +24% YoY. CICC believes this could be due to loss in
VIP market share as luck normalizes, offset by in-line-with-industry Mass segment growth.
Compared with 4Q 2017, CICC expects SJM's GGR market share to decline as it lost market
share in the VIP segment with Mass segment market share unchanged.
After four straight years of declining earnings, CICC believes SJM will post its first
year of earnings growth in 2018 as the gaming industry continues its strong growth.
Lisboa Palace's opening likely to be delayed until 2H 2019, extending SJM's lack of
exposure in Cotai, it added. (KL)