[ET Net News Agency, 16 January 2018] Morgan Stanley lifted its target price for Sands
China (01928) to HK$42 from HK$40.5, and maintained its "equal-weight" rating.
The research house said Sands China owns close to 13,000 hotel rooms, representing 45%
market share in 2019. Hotel occupancy of 88% (2017), is lower than peers of 92% and
industry peak cycle of 95%, which should allow Sands China to grow more than peers when
the improved infrastructure brings more visitors to Macau.
Also, the company has the largest exposure to the grind mass segment (i.e., lower
spending per capita). Thus, Morgan thinks it stands out to benefit the most when
lower-tier cities become wealthier, driving higher spending per capita. It expects the
market to reward Sands for maintaining market share in 4Q 2017 and raising DPS marginally
for 2017. (KL)