SJM Holdings (0880) AI Stock Analysis

• Market Cap: $23.58B
• Dividend Yield: N/A
• Average Volume (3M): 30.08M
• Price to Earnings (P/E): 8425.0
• Beta (1Y): 0.81
• Revenue Growth: 12.29%
• EPS Growth: 98.20%
• Country: HK
• Employees: 20,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.02
• Shares Outstanding: 7,101,805,000
• 10 Day Avg. Volume: 25,703,360
• 30 Day Avg. Volume: 30,075,507
• PEG Ratio: -67.32
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 9.37
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 13.26
• 1Y Price Target: $2.88
• Price Target Upside: -10.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 40 Underperform
• Price Target: HK$3.00 ▼(-7.12% Downside)

SJM Holdings faces significant challenges despite a strong revenue recovery. The most pressing issues are weak profitability, high leverage, and liquidity concerns, which are reflected in the low financial performance score. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a highly negative P/E ratio. These factors collectively result in a low overall stock score.

SJM Holdings Business Overview & Revenue Model

Company Description

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau, Hong Kong, and internationally. It operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in the VIP gaming, mass market table gaming, slot machine, and other gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates a hotel; and offers catering, retail, leasing and related activities. SJM Holdings Limited also provides marketing and promotion, property development, casino operations management, dredging, gaming promotion, human resources and project management, food and beverage, treasury, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

How the Company Makes Money

SJM 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 is experiencing strong revenue recovery post-pandemic, but profitability remains weak with a net profit margin close to zero. High leverage and low equity returns pose financial risks, and the absence of operating and free cash flow indicates potential liquidity issues.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.61B	17.24B	13.14B	4.00B	5.89B	4.14B
Gross Profit	16.90B	16.50B	12.50B	3.60B	5.55B	3.93B
EBITDA	3.37B	3.92B	1.93B	-4.77B	-2.58B	-2.14B
Net Income	-16.60M	3.20M	-2.01B	-7.80B	-4.14B	-3.02B
Balance Sheet
Total Assets	48.94B	48.72B	49.74B	52.65B	49.91B	52.72B
Cash, Cash Equivalents and Short-Term Investments	2.40B	2.21B	3.54B	6.86B	3.20B	6.13B
Total Debt	28.23B	27.46B	28.75B	32.43B	23.86B	20.24B
Total Liabilities	34.92B	34.55B	35.65B	36.63B	29.50B	28.08B
Stockholders Equity	13.73B	13.92B	13.36B	16.00B	20.34B	24.53B
Cash Flow
Free Cash Flow	-10.70M	2.30B	2.11B	-5.29B	-5.99B	-10.94B
Operating Cash Flow	2.05B	4.06B	3.80B	-4.22B	-4.54B	-7.49B
Investing Cash Flow	-2.22B	-1.41B	-1.27B	-2.02B	-787.70M	2.54B
Financing Cash Flow	-972.40M	-3.74B	-5.71B	9.49B	3.04B	1.52B

SJM Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.23 is above the 20-day moving average (MA) of 3.04, above the 50-day MA of 3.15, and above the 200-day MA of 2.64, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.21 is Neutral, neither overbought nor oversold. The STOCH value of 74.94 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0027	78 Outperform	HK$187.51B	19.51	11.53%	2.80%	4.94%	15.38%
1928	77 Outperform	HK$175.63B	24.59	101.36%	2.30%	-3.13%	-13.65%
1128	65 Neutral	HK$37.95B	20.53	-24.06%	5.12%	-4.41%	-31.45%
2282	63 Neutral	HK$63.43B	14.68	872.64%	5.51%	5.59%	-4.38%
0880	40 Underperform	$23.58B	8,425.00	-0.13%	―	12.29%	98.20%
0200	34 Underperform	HK$14.28B	-72.72	―	―	13.18%	86.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

SJM Holdings Corporate Events

SJM Holdings Expands Casino Lisboa Operations with Strategic Acquisition

SJM Holdings has announced a connected transaction involving the acquisition of a portion of Hotel Lisboa for HK$529 million. This strategic move aims to expand Casino Lisboa’s operations by adding 7,504 square meters, enhancing its offerings for both VIP and mass-market patrons. The acquisition is expected to strengthen SJM Resorts’ competitive position on the Macau Peninsula and align with its long-term strategy to leverage its heritage brand and capture growth opportunities in Macau’s gaming market.

The most recent analyst rating on (HK:0880) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on SJM Holdings stock, see the HK:0880 Stock Forecast page.

SJM Holdings Sees Revenue Growth Amidst EBITDA Decline in H1 2025

SJM Holdings Limited reported a 6.1% increase in total group net revenue for the first half of 2025, reaching HK$14,639 million, driven by a rise in net gaming revenue. Despite this growth, the company experienced a decline in adjusted EBITDA by 5.1% and reported a loss attributable to owners of HK$182 million. The Grand Lisboa Palace Resort and Grand Lisboa both saw increases in occupancy rates and average daily room rates, although their adjusted property EBITDA decreased compared to the previous year. The company maintained a substantial cash reserve but also carried significant debt, with a portion of its banking facilities remaining undrawn.

The most recent analyst rating on (HK:0880) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on SJM Holdings stock, see the HK:0880 Stock Forecast page.

SJM Holdings to Review Interim Results and Dividend

SJM Holdings Limited has announced that its board of directors will convene on August 28, 2025, to approve the unaudited interim results for the first half of the year and consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, which could impact its market position and stakeholder interests.

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.