{"id":24008,"date":"2021-10-28T13:10:55","date_gmt":"2021-10-28T16:10:55","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=24008"},"modified":"2026-04-23T14:21:08","modified_gmt":"2026-04-23T17:21:08","slug":"sjm-holdings-earnings-to-improve-analysts-say","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-earnings-to-improve-analysts-say","title":{"rendered":"SJM Holdings earnings to improve, analysts say"},"content":{"rendered":"\n<p>Moody\u2019s Investors Service has predicted that SJM Holdings&#8217; performance will improve over the next two to three years thanks to Grand Lisboa Palace and Macau&#8217;s expected recovery.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Macau.- Analysts at Moody&#8217;s Investor Services have predicted that based on the expected Macau market recovery and the growth of the Grand Lisboa, <strong>SJM Holdings Ltd.&#8217;s earnings will improve<\/strong> in the next two to three years. The recovery will lead to an improvement in EBITDA &#8220;from a negative level in 2021 to approximately 8.5 times in 2022 and 3.2 times in 2023.&#8221;<\/p>\n\n\n\n<p>The grand opening of\u00a0<a rel=\"noreferrer noopener\" target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/grand-lisboa-palace-partial-opening-announced-for-july-30\">Grand Lisboa Palace<\/a>\u00a0Phase I took place on July 30, with\u00a0<strong>SJM allocating the venue 118 gaming tables<\/strong>\u00a0from other properties. When complete, the venue will have<strong>\u00a0around 2,000 hotel rooms<\/strong>\u00a0split between three venues: The Lisboa Palace Hotel, Palazzo Versace Macau, and Karl Lagerfeld Hotel luxury boutique hotel.<\/p>\n\n\n\n<p>It will have&nbsp;<strong>27,000 square metres of gaming floor space&nbsp;<\/strong>(290,000 sq ft) for up to&nbsp;<strong>700 gaming tables and 1,200 electronic gaming machines<\/strong>.<\/p>\n\n\n\n<p>Moody&#8217;s said: &#8220;The expected ramp-up of Grand Lisboa Palace since its opening in July 2021 will allow SJM Holdings to gain market share by building a significant presence in Cotai.&#8221;<\/p>\n\n\n\n<p>According to Moody&#8217;s, Grand Lisboa&#8217;s GGR will reach HK$16bn in 2023 while property EBITDA will be nearly HK$2.5bn, accounting for approximately 40 per cent to 50 per cent of the group\u2019s total EBITDA in 2023.<\/p>\n\n\n\n<p>Analysts have previously said\u00a0<a rel=\"noreferrer noopener\" target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/macaus-economy-to-rebound-by-2024-analysts-say\">Macau\u2019s economy<\/a>\u00a0could return to pre-pandemic levels by 2024. <strong>Moody\u2019s has given Macau an Aa3 rating<\/strong>, however it said: \u201cThe growth volatility of Macau\u2019s economy is among the highest of all rated sovereigns.<\/p>\n\n\n\n<p>\u201cBut despite the highly volatile nature of economic growth, Macao\u2019s vast fiscal and external reserves \u2014&nbsp;<strong>significantly stronger than those of similarly rated peers<\/strong>&nbsp;\u2014 and very high per capita incomes continue to support its credit profile.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Moody\u2019s to review SJM Holdings\u2019 rating after refinancing delay<\/h2>\n\n\n\n<p>SJM Holdings Limited&nbsp;has been placed on review for downgrade by Moody\u2019s Investors Servic<strong>e mainly due to a delay in refinancing its existing bank loans<\/strong>, which will mature at the end of February 2022.<\/p>\n\n\n\n<p>Moody\u2019s will review SJM Holdings Limited\u2019s Ba1 corporate family rating (CFR) and the Ba2 backed senior unsecured rating on the bond issued by Champion Path Holdings Limited and guaranteed by SJM Holdings Limited.<\/p>\n\n\n\n<p><strong>Sean Hwang, Moody\u2019s assistant vice president and analyst<\/strong>, said: \u201cWhile SJM\u2019s solid credit quality and long-standing banking relationships support its ability to raise necessary funds, its funding plan is subject to certain regulatory processes and capital market uncertainties.\u201d<\/p>\n\n\n\n<p><strong>If SJM fails to make sufficient progress on the maturity of bank loans<\/strong>&nbsp;in the next three months or so, Moody\u2019s will downgrade its rating, possibly by multiple ratings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody\u2019s Investors Service has predicted that SJM Holdings&#8217; performance will improve over the next two to three years thanks to Grand Lisboa Palace and Macau&#8217;s expected recovery.<\/p>\n","protected":false},"author":176,"featured_media":17520,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Moody's Investors Service projects SJM Holdings' earnings will improve over the next 2-3 years, driven by Macau's market recovery and the ramp-up of Grand Lisboa Palace, with significant GGR and EBITDA contributions expected from the new property. However, SJM's credit rating is under review for a potential downgrade due to delays in refinancing existing bank loans maturing in February 2022, highlighting capital market uncertainties and regulatory process risks.","focusai_entities":"SJM Holdings, Moody\u2019s Investors Service, Grand Lisboa Palace, Champion Path Holdings Limited, Sean Hwang","focusai_location":"Macau, Cotai","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"SJM Refinancing Impact","query":"What specific regulatory hurdles and capital market conditions are impeding SJM Holdings' refinancing efforts, and what are the potential cascading effects on its Ba1 CFR if a multi-rating downgrade occurs?"},{"label":"Grand Lisboa Palace GGR","query":"How does the projected HK$16bn GGR for Grand Lisboa Palace in 2023 compare to pre-pandemic GGR contributions from SJM's other Cotai properties, and what market share shift is anticipated from this ramp-up?"}],"footnotes":""},"categories":[16338,163],"tags":[23906,23108],"class_list":["post-24008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","tag-macau-casinos","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/24008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=24008"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/24008\/revisions"}],"predecessor-version":[{"id":24016,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/24008\/revisions\/24016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17520"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=24008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=24008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=24008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}