Citigroup: Maintains a "buy" rating on Sands China (01928), EBITDA expected to recover in the second half of the year.

Citigroup released a research report stating that Sands China (01928) first-quarter performance met expectations, with net income falling 6% year-on-year and property EBITDA dropping 12% to $535 million, roughly in line with the bank's expected $530 million and market forecast of $541 million. The group's Londoner Hotel in Macau is now fully operational, taking into account the latest market gambling revenue trends, the upcoming May Day holiday, and the fact that the major shareholder LVS has expressed intentions to continue purchasing shares of Sands China from the market, as well as the resumption of dividends, it is expected to provide support for its stock price. Citigroup maintains a "buy" rating with a target price of HK$21. With the Londoner Hotel fully operational before the May Day holiday, Citigroup expects Sands China's EBITDA to significantly recover in the second half of this year. After the announcement of first-quarter performance, concerns about disappointing performance have now dissipated.