[ET Net News Agency, 8 January 2021] Citi Research raised its target price for Sands
China (01928) to HK$48.5 from HK$42.5 and maintained its "buy" rating.
The research house said Sands suspended its regular dividend program and raised two
senior notes (US$800m, 5-year note at 3.8% and US$700m, 10-year note at 4.375%,
respectively) in 2Q 2020.
It has obtained covenant waivers from banks, hence, Sands is not subject to any
financial covenant tests until 1 January 2022. It has also obtained an option to raise up
to US$1bn in incremental revolver commitments from lenders.
Citi expects Sands to report 4Q 2020 Macau revenue of US$655m (down 71%) and property
EBITDA of US$45m (down 95%). Citi believes the sequential improvement is likely a function
of recovery in Mass, as the market leader in Mass benefited from the continued growth in
the higher-margin segment. (KL)