CLSA improves SJM EBITDA forecast


CLSA has upped its forecast by 9.3 per cent.

Macau.- Investment group CLSA has adjusted its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) forecast for SJM Holdings following the company’s first-quarter performance. The revised forecast it 9.3 per cent higher, while the forecast for 2025 has been raised by 2.9 per cent. 

Analysts attributed the adjustments to increased non-gaming revenue projections and margin assumptions for SJM Holdings’ key properties, Grand Lisboa and Grand Lisboa Palace (GLP). CLSA noted that SJM Holdings’ performance in the first quarter exceeded expectations.

Analysts cautioned that SJM Holdings’ margin expansion still may face challenges in the coming quarters as the company continues to invest in its salesforce and implement salary adjustments.

However, GLP currently holds a market share of only 2.2 per cent, falling short of the targeted 5 per cent. Analysts emphasised the need for continued investment in infrastructure. CLSA does not expect dividends to return before 2026.

In the first quarter of the year, SJM Holdings reported gross gaming revenue (GGR) was up 77.3 per cent year-on-year at HK$6.46bn (US$827m). Net gaming revenue was up 74.5 per cent year-on-year to HK$6.46bn (US$827m). Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at HK$864m (US$110.5m), compared with HK$31m (US$4m) in the same period last year.

See also: Macau gaming tax revenue up 98.2% in first 4 months of the year

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