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SJM Holdings (HK:0880)
:0880
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SJM Holdings (0880) AI Stock Analysis

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HK:0880

SJM Holdings

(OTC:0880)

Rating:50Neutral
Price Target:
HK$3.50
▲(12.18%Upside)
SJM Holdings' stock score is influenced primarily by financial performance challenges and valuation concerns. Despite a strong revenue recovery, high leverage, low profitability, and an exceptionally high P/E ratio pose significant risks. While technical indicators suggest bullish momentum, the overbought condition could lead to potential corrections.

SJM Holdings (0880) vs. iShares MSCI Hong Kong ETF (EWH)

SJM Holdings Business Overview & Revenue Model

Company DescriptionSJM Holdings Limited is a leading player in the gaming and hospitality industry based in Macau, China. The company operates through its subsidiaries, providing casino gaming operations and related services. It is one of the license holders authorized to operate casinos in Macau, offering a wide range of gaming and entertainment options to its customers. Additionally, SJM Holdings is involved in the development and management of integrated resorts, which include hotels, retail, dining, and entertainment facilities.
How the Company Makes MoneySJM Holdings makes money primarily through its gaming operations, which include a variety of casino games such as baccarat, blackjack, and slot machines. The company generates revenue from both VIP gaming and mass market gaming segments. VIP gaming involves high-stakes players, often facilitated through junket operators who bring in clients and extend credit, while the mass market segment caters to a broader customer base with lower stakes. Apart from gaming, SJM Holdings also earns income through its hospitality services, including hotel accommodations, food and beverage sales, and retail operations within its integrated resorts. Key factors contributing to its earnings include its strategic location in Macau, partnerships with junket operators, and its ability to attract both high-end and mass-market customers.

SJM Holdings Financial Statement Overview

Summary
SJM Holdings shows a strong revenue recovery post-pandemic, but profitability remains weak with minimal net profit margins and high leverage that pose financial risks. The absence of recent cash flows further highlights potential liquidity issues.
Income Statement
45
Neutral
SJM Holdings has shown a significant recovery in revenue, with a growth rate of approximately 119% from 2023 to 2024, indicating strong revenue recovery post-pandemic. However, profitability remains a concern as the net profit margin is close to zero in 2024, reflecting minimal net income relative to revenue. EBIT and EBITDA margins have improved to 6.2% and 12.2% respectively, yet still show room for strengthening profitability.
Balance Sheet
40
Negative
The company's debt-to-equity ratio is relatively high at 1.97, indicating a high level of leverage which could pose financial risks if not managed properly. The equity ratio is 28.6%, suggesting a moderate reliance on equity financing. Return on Equity is low at 0.02%, highlighting minimal returns for shareholders despite improved revenues.
Cash Flow
30
Negative
The absence of operating and free cash flow in 2024 is concerning, indicating potential liquidity issues. However, previous years showed positive free cash flow, which suggests that cash flow management needs attention. The lack of recent cash flow data limits further analysis, highlighting the need for improved cash management strategies.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.24B13.14B4.00B10.08B7.51B
Gross Profit16.50B12.50B3.60B5.55B3.93B
EBITDA3.92B1.93B-4.77B-2.59B-2.14B
Net Income3.20M-2.01B-7.85B-4.14B-3.02B
Balance Sheet
Total Assets48.72B49.74B52.65B49.91B52.72B
Cash, Cash Equivalents and Short-Term Investments2.21B3.54B6.86B3.20B6.13B
Total Debt27.46B28.75B32.43B23.86B20.24B
Total Liabilities34.55B35.65B36.63B29.50B28.08B
Stockholders Equity13.92B13.36B16.00B20.34B24.53B
Cash Flow
Free Cash Flow2.30B2.11B-5.29B-5.99B-10.94B
Operating Cash Flow4.06B3.80B-4.22B-4.54B-7.49B
Investing Cash Flow-1.41B-1.27B-2.02B-787.70M2.54B
Financing Cash Flow-3.74B-5.71B9.49B3.04B1.52B

SJM Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.12
Price Trends
50DMA
2.66
Positive
100DMA
2.49
Positive
200DMA
2.56
Positive
Market Momentum
MACD
0.15
Positive
RSI
63.31
Neutral
STOCH
47.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0880, the sentiment is Positive. The current price of 3.12 is above the 20-day moving average (MA) of 3.03, above the 50-day MA of 2.66, and above the 200-day MA of 2.56, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0880.

SJM Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$168.36B19.2211.92%2.60%17.34%28.21%
77
Outperform
$154.10B18.90203.51%10.97%6.04%50.60%
71
Outperform
HK$34.22B10.63
3.99%16.27%172.71%
63
Neutral
$63.08B13.71
3.64%26.22%74.49%
57
Neutral
HK$25.10B4.09-2.03%5.85%-0.24%-68.05%
50
Neutral
$22.16B7,800.000.03%31.24%
34
Underperform
HK$12.35B-220.97%23.05%55.01%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0880
SJM Holdings
3.12
0.68
27.87%
HK:2282
MGM China Holdings
16.60
6.01
56.71%
HK:1128
Wynn Macau
6.51
1.16
21.64%
HK:0027
Galaxy Entertainment Group
38.40
8.09
26.70%
HK:0200
Melco International
5.44
2.14
65.00%
HK:1928
Sands China
19.04
4.91
34.79%

SJM Holdings Corporate Events

SJM Holdings Expands with Hengqin Property Acquisition
Jul 28, 2025

SJM Holdings has announced the acquisition of a property in Hengqin for RMB724.20 million, which will be converted into a 3-star hotel. This strategic move aims to expand SJM’s market reach by attracting budget-conscious travelers, diversifying its portfolio, and increasing revenue streams. The location’s proximity to Macau and access to the Mainland China market presents significant growth potential, while the operation of a 3-star hotel could result in lower operating costs and potential cost synergies.

The most recent analyst rating on (HK:0880) stock is a Sell with a HK$2.85 price target. To see the full list of analyst forecasts on SJM Holdings stock, see the HK:0880 Stock Forecast page.

SJM Holdings Successfully Passes All AGM Resolutions
Jun 10, 2025

SJM Holdings Limited announced that all resolutions proposed at its 2025 Annual General Meeting were successfully passed by shareholders. Key resolutions included the re-election of directors, approval of financial statements, and authorization for the board to manage director remuneration and share transactions. This outcome underscores shareholder confidence in the company’s leadership and strategic direction, potentially strengthening its position in the competitive gaming industry.

The most recent analyst rating on (HK:0880) stock is a Sell with a HK$2.85 price target. To see the full list of analyst forecasts on SJM Holdings stock, see the HK:0880 Stock Forecast page.

SJM Holdings to Restructure Satellite Casino Operations in Macau
Jun 9, 2025

SJM Holdings Limited announced plans to acquire properties for Casino L’Arc Macau and Casino Ponte 16 as part of its strategy to align with revised Macau gaming laws. The company will cease operations at seven satellite casinos by the end of 2025, reallocating gaming resources to its directly owned casinos. SJM is committed to maintaining local employment, offering job opportunities within its portfolio to affected workers. The Board does not foresee any significant adverse effects on the company’s operations or profitability due to these changes.

The most recent analyst rating on (HK:0880) stock is a Sell with a HK$2.85 price target. To see the full list of analyst forecasts on SJM Holdings stock, see the HK:0880 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025