CITIC CLSA: Sands China (01928) is expected to accelerate the expansion of its Londoner Macao Phase 2 project as it enters operation, and will maintain its "outperform the market" rating for now.

CITIC Lyon released a research report stating that Sands China (01928) witnessed a 8% QoQ decrease in adjusted EBITDA to USD 545 million in the first quarter of this year, in line with market expectations but 4% lower than the bank's forecast. The company's market share in revenue also dropped by 0.7 percentage points to 22.8% in the quarter, mainly due to the impact of The Venetian Macao. The report mentioned that The Londoner Macao Phase Two has been fully operational, increasing the total number of hotel rooms to 10,800 and the bank expects the expansion of The Londoner to accelerate. Sands China's EV/Ebitda for 2026 is 7.3 times, and Las Vegas Sands still plans to increase its stake in Sands China to 74.9%, maintaining a "outperform the market" rating for now.