CBRE Research optimistic on Macau prospects
Analysts particularly highlighted SJM.
Macau.- CBRE Research has a positive outlook on the Macau gaming market and SJM Holdings in particular despite concerns regarding China’s economy. Although cautious about China’s economic outlook, CBRE indicated that Macau’s gross gaming revenue recovery through May shows less connection to China’s overall economy.
It highlighted the Chinese government’s expansion of the Individual Visitor Scheme (IVS), facilitating more travel by mainland Chinese to Macau and Hong Kong, and said Macau had benefited from pent-up leisure demand following the Covid-19 lockdown and a trend seen in other markets where demand for experiential travel has surpassed that for consumer goods.
Following meetings in London with Christopher Ip Shih Ming, chief financial officer of SJM, analysts John DeCree and Max Marsh said that under the new leadership of managing director Daisy Ho and CFO Ip Shih Ming, SJM Holdings is repositioning its Grand Lisboa Palace resort and improving operational efficiencies.
SJM’s financial results for the first quarter of 2024 revealed a 74.5 per cent increase in net gaming revenue compared to the previous year, reaching HK$6.46bn (US$827m). During the same period, the group’s adjusted EBITDA rose from HK$31m (US$4m) in the first quarter of 2023 to HK$864 million (US$110.5m) in the first quarter of 2024.
