SJM Holdings (0880) AI Stock Analysis

• Market Cap: $20.17B
• Dividend Yield: N/A
• Average Volume (3M): 21.13M
• Price to Earnings (P/E): 8425.0
• Beta (1Y): 0.83
• 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: 19,216,215
• 30 Day Avg. Volume: 21,131,964
• 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: 2.21
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 13.26
• 1Y Price Target: $2.88
• Price Target Upside: -2.51% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 40 Neutral
• Price Target: HK$3.00 ▲(1.69% Upside)

SJM Holdings is experiencing a strong revenue recovery, but significant challenges remain in profitability and cash flow management. The technical indicators suggest bearish momentum, and the valuation metrics are unattractive due to significant losses and no dividend yield. These factors combine to result in a low overall stock score.

SJM Holdings Business Overview & Revenue Model

Company Description

SJM 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 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: 2.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.95 is below the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.09, and above the 200-day MA of 2.66, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.51 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
2282	67 Neutral	$54.10B	12.31	452.88%	6.19%	5.59%	-4.38%
0027	65 Neutral	$164.60B	17.30	12.59%	3.16%	4.94%	15.38%
1128	65 Neutral	$34.59B	17.92	―	5.52%	-4.41%	-31.45%
1928	62 Neutral	$152.64B	20.47	111.35%	2.60%	-3.13%	-13.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0880	40 Neutral	$20.17B	8,425.00	-0.13%	―	12.29%	98.20%
0200	36 Underperform	$10.19B	―	-28.54%	―	13.18%	86.18%

SJM Holdings Corporate Events

SJM Holdings Reports Revenue Growth Amid Strategic Expansion

SJM Holdings Limited is a prominent investment holding company based in Hong Kong, primarily engaged in the development and operation of casinos and related facilities, as well as hotel, catering, retail, and leasing services in Macau. The company is a key player in the gaming industry, with a significant presence in Macau’s casino market.

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.

SJM Holdings Expands with Hengqin Property Acquisition

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.