According to analysts, SJM Holdings has only about six months of liquidity runway.<\/p>\n\n\n\n\n\n\n\n
Macau.-\u00a0SJM Holdings Ltd\u00a0<\/strong>is facing a serious financial crisis, according to the latest report from JP Morgan Securities. Analysts DS Kim, Amanda Cheng and Livy Lyu suggest the casino operator has only six months of liquidity.<\/p>\n\n\n\n Their report states that SJM Holdings’ loan refinancing has stalled due to government delays, which will likely require the company to seek external funding, either through debt or capital. JP Morgan analysts also warned that SJM Holdings’ Grand Lisboa Palace casino resort could take a long time “to ramp up and achieve a critical mass of patrons for breakeven.”<\/p>\n\n\n\n Analysts added that SJM Holdings\u2019 operating expense was “likely to rise from the second half of 2022 amid the likely closure of some satellite casinos<\/a>” as they believe SJM Holdings will have to bring its gaming staff onto its own payroll. “This would shorten its liquidity runway even further, they analysts noted.<\/p>\n\n\n\n There are currently\u00a018 satellite casinos in Macau\u00a0<\/strong>operating under licences attached to one of the six casino concessionaires but run by third parties in individually owned premises. Some 14 are operating under the licence of SJM Holdings Ltd, and the other four are tied to Galaxy Entertainment Group (GEG) and Melco Resorts and Entertainment Ltd.<\/p>\n\n\n\n A few weeks ago,\u00a0Emperor Entertainment Hotel Limited<\/a>\u00a0reported that its casino at the Grand Emperor Hotel will cease operations due to the termination of its service contract with SJM, which\u00a0expires on June 26<\/strong>. However, Macau\u2019s Labour Affairs Bureau has stressed that SJM has a duty to protect the rights of laid-off workers<\/a>\u00a0following the closure of the casino.<\/p>\n\n\n\n SJM Holdings reported a full-year loss of HKD4.14bn (US$530.3m) for 2021.<\/p>\n\n\n\nSJM chairman confident about next concession period in Macau<\/h2>\n\n\n\n