CICC: Maintains "neutral" rating on SJM Holdings (00880), lowers target price to 2.6 Hong Kong dollars.

CICC released a research report stating that they are maintaining a "neutral" rating for SJM Holdings (00880), with the target price lowered by 13% to 2.6 Hong Kong dollars. The bank stated that SJM Holdings' fourth-quarter net profit increased by 17% year-on-year to 7.469 billion Hong Kong dollars, remaining flat on a quarterly basis and recovering to 87% of the same period in 2019. Adjusted EBITDA increased by 42% year-on-year, but dropped by 4% quarterly to 993 million Hong Kong dollars, recovering to 84% of the same period in 2019, which is in line with expectations. The bank noted that management has observed changes in customer travel behavior during the Lunar New Year this year, with the total gaming revenue in the first seven days below last year's levels, mainly due to lower average bet sizes in the high-end segment market. The bank believes that the performance benefited from the gradual growth of the new Lisboa, with its total gaming revenue increasing by 5% sequentially.