[ET Net News Agency, 24 May 2021] Morgan Stanley cut its target price for SJM Holdings
(00880) to HK$11 from HK$13.5 due to the lower 2022 EBITDA and maintained its "overweight"
rating.
The research house now expects Grand Lisboa Palace (GLP) to only open its VIP operation
in 2022 (previously 2Q 2021) but Morgan continues to expect it to open Mass & Slot
operations in 2Q 2021. It also modeled it to only open its 1.4K Lisboa Palace hotel rooms
in 2Q 2021 while its high-end rooms of Versace and Lagerfeld may only open by mid-2022.
GLP should make minimal EBITDA in 2021 if factoring in the pre-opening expenses (mainly
staff costs at GLP), Morgan said. This, as well as the slower recovery of industry GGR,
results in 97% and 14% lower estimates for 2021 and 2022 EBITDA. (KL)