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Sands China Ltd. (HK:1928)
:1928

Sands China (1928) AI Stock Analysis

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HK

Sands China

(OTC:1928)

Rating:73Outperform
Price Target:
HK$17.50
▲(6.58%Upside)
Sands China's overall score is driven by its strong financial recovery and attractive valuation. Despite high leverage, the company's profitability improvements and competitive dividend yield are key strengths. Technical indicators suggest moderate market momentum, but potential resistance levels remain.
Positive Factors
Earnings projection
Sands China is anticipated to outperform peers with a projected 36% earnings CAGR from FY24 to FY26.
Hotel facilities
Sands China should outperform this year, backed by its upgraded hotel facilities and holding a significant portion of 5-star hotel inventory in Macau.
Market share
Sands China should stand in the best position to secure greater market share by gross gaming revenue, given its commanding presence in the high-margin mass gaming segment.
Negative Factors
Gaming revenue
Minimal year-to-date gross gaming revenue expansion in Macau and its tough base may lead to a low single-digit dip in first quarter revenue.
Macroeconomic factors
Sands China is anticipated to outperform peers with a projected 36% earnings CAGR from FY24 to FY26, despite low macro visibility and rising geopolitical tensions.

Sands China (1928) vs. iShares MSCI Hong Kong ETF (EWH)

Sands China Business Overview & Revenue Model

Company DescriptionSands China Ltd., an investment holding company, develops, owns, and operates integrated resorts and casinos in Macao. It owns and operates The Venetian Macao, The Londoner Macao, The Parisian Macao resort, The Plaza Macao, and The Sands Macao casino; the Cotai Expo, a convention and exhibition hall; and the Cotai Arena, an entertainment venue, as well as Cotai Water Jet ferry for leisure and business travelers. As of December 31, 2021, the company had 12,373 hotel rooms and suites, 151 restaurants and food outlets, 2.1 million square feet of retail malls, 1.7 million square feet of MICE space, 4 permanent theatres, a 15,000-seat arena, and casinos. It also offers ferry transportation and leasing services, and pontoon leasing; travel and tourism agency services; security services; human resources administration services; and mall management services, as well as outsourcing services, including information technology, accounting, hotel management, and marketing. The company was incorporated in 2009 and is headquartered in Taipa, Macau. Sands China Ltd. is a subsidiary of Las Vegas Sands Corp.
How the Company Makes MoneySands China primarily generates revenue through its casino operations, which include a wide range of gaming activities such as table games and slot machines. The casino business is the most significant contributor to the company's earnings, capitalizing on Macao's status as a leading global gaming hub. Additionally, Sands China derives income from its non-gaming offerings, including hotel accommodations, retail shopping, dining, and entertainment. The company's integrated resorts attract both leisure and business travelers, enhancing its revenue streams through events, conventions, and exhibitions. Key partnerships with international luxury brands and entertainment providers further bolster Sands China's earnings by drawing high-spending tourists and enhancing the overall customer experience.

Sands China Financial Statement Overview

Summary
Sands China has shown a strong recovery in revenue and profitability, with improvements in gross profit, EBIT, and EBITDA margins. However, high leverage and past volatility in financial metrics indicate ongoing risks.
Income Statement
78
Positive
Sands China has demonstrated a strong recovery from prior losses with a significant increase in total revenue from $1.605 billion in 2022 to $7.08 billion in 2024. The gross profit margin improved, indicating effective cost management, and the EBIT and EBITDA margins have returned to positive territory, reflecting operational efficiency. The net profit margin also turned positive, showcasing improved profitability. However, the revenue growth has been volatile over the years, indicating potential sensitivity to market conditions.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is high due to substantial total debt, which poses a risk if not managed properly. However, an improvement in stockholders' equity from negative to positive indicates better financial health and stability. The equity ratio remains low, reflecting a high leverage position. While these improvements are promising, the balance sheet still reflects significant leverage risk.
Cash Flow
70
Positive
Sands China's cash flow position has strengthened, with a positive free cash flow in 2024 after previous years of negative free cash flow. The operating cash flow to net income ratio suggests sufficient cash generation relative to net income, indicating good cash conversion. While the free cash flow growth rate is notable, the volatility in cash flow from operations over the years suggests a need for cautious financial management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.08B6.53B1.60B2.87B1.69B
Gross Profit4.18B5.24B487.00M1.73B549.00M
EBITDA2.15B2.02B-427.00M25.00M-557.00M
Net Income1.04B692.00M-1.58B-1.05B-1.52B
Balance Sheet
Total Assets11.17B10.26B10.56B10.09B10.55B
Cash, Cash Equivalents and Short-Term Investments1.97B1.36B790.00M678.00M861.00M
Total Debt8.16B8.33B10.20B7.95B7.04B
Total Liabilities10.14B10.26B11.26B9.21B8.62B
Stockholders Equity1.03B-4.00M-700.00M888.00M1.93B
Cash Flow
Free Cash Flow1.21B2.09B-676.00M-476.00M-1.83B
Operating Cash Flow2.07B2.29B-473.00M88.00M-816.00M
Investing Cash Flow-810.00M-180.00M-325.00M-634.00M-1.02B
Financing Cash Flow-658.00M-2.45B1.82B366.00M231.00M

Sands China Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.42
Price Trends
50DMA
14.89
Positive
100DMA
15.80
Positive
200DMA
17.15
Negative
Market Momentum
MACD
0.14
Negative
RSI
64.35
Neutral
STOCH
75.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1928, the sentiment is Positive. The current price of 16.42 is above the 20-day moving average (MA) of 15.58, above the 50-day MA of 14.89, and below the 200-day MA of 17.15, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 75.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1928.

Sands China Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$132.89B16.52203.51%14.20%6.04%50.60%
62
Neutral
$16.34B10.69-6.34%3.17%1.66%-24.46%
$2.22B3,430.000.03%
$5.94B10.18
4.09%
$19.86B17.1411.92%2.92%
$2.03B18.105.24%
$3.66B8.63
7.03%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1928
Sands China
16.42
0.41
2.53%
SJMHF
SJM Holdings
0.32
0.02
6.67%
MCHVF
MGM China Holdings
1.58
0.12
8.22%
GXYEF
Galaxy Entertainment Group
4.40
-0.09
-2.00%
NGCRF
NagaCorp
0.45
0.00
0.00%
WYNMF
Wynn Macau
0.70
-0.07
-9.09%

Sands China Corporate Events

Sands China Ltd. Announces Successful 2025 AGM Resolutions
May 22, 2025

Sands China Ltd. announced the results of its 2025 Annual General Meeting, where all proposed resolutions were passed with significant majorities. Key resolutions included the approval of a final dividend, re-election of directors, and the granting of mandates to repurchase and issue shares. These decisions reflect the company’s strategic direction in maintaining shareholder value and ensuring effective governance. The re-appointment of Deloitte Touche Tohmatsu as auditors and the authorization of directors’ remuneration were also confirmed, indicating a continued focus on financial transparency and management stability.

The most recent analyst rating on (HK:1928) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Sands China stock, see the HK:1928 Stock Forecast page.

Sands China Announces Las Vegas Sands Corp.’s Q1 Financial Results
Apr 28, 2025

Sands China Ltd. announced the filing of its controlling shareholder, Las Vegas Sands Corp.’s (LVS), quarterly report for the fiscal first quarter ended March 31, 2025. The report, filed with the SEC, includes financial results prepared under US GAAP, which differ from the IFRS standards that Sands China follows. This disclosure is significant for stakeholders as it provides insights into the financial health and operational performance of LVS, which directly impacts Sands China’s market positioning and strategic decisions.

Sands China Reports Decline in Q1 2025 Revenues Amid Strategic Investments
Apr 23, 2025

Sands China Ltd. reported a decrease in total net revenues by 5.7% to US$1.70 billion for the first quarter of 2025 compared to the same period in 2024. The company’s net income also fell to US$202 million from US$297 million in the previous year. Despite the softened market growth in Macao, Sands China remains committed to its strategic objectives and capital investment programs, which are expected to drive future growth in both Macao and Singapore.

Sands China Ltd. Announces Early Repayment of $1 Billion Loan
Mar 27, 2025

Sands China Ltd. has announced the early repayment of a $1 billion term loan extended by Las Vegas Sands Corp., which was originally due in 2028. This strategic financial move demonstrates the company’s robust financial health and may positively impact its market positioning by reducing debt obligations ahead of schedule, potentially benefiting stakeholders.

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: Jun 25, 2025