DBS: Lowering target price for Sands China (01928) to HKD 22.86, global outlook remains uncertain.

DBS released a research report, predicting that the compound annual growth rates of revenue and profit for Sands China (01928) for the fiscal years 2024 to 2026 will be 10% and 27% respectively. Considering the ongoing tense geopolitical situation and the rapidly changing global outlook, a more conservative stance is maintained, with the target price lowered from HK$26.62 to HK$22.86, and a rating of "buy". The bank pointed out that Sands China's advantages will surpass those of its peers, expecting the renovation of the Londoner Macao to further enhance customer experience and drive growth in the high-end segment. With the completion of the revamp of the Venetian Macao theatre, and the low base effect from earlier renovation projects since the second quarter of this year, Sands China is expected to gain more market share in terms of gaming revenue. The report mentioned that Macau's gaming revenue increased by 1.7% year-on-year in April, and with the Golden Week performance in May being satisfactory, further acceleration of gaming revenue growth in May is expected. After upgrading its hotel facilities, Sands China should perform well in the second half of the year.