Sands China (1928) AI Stock Analysis

• Market Cap: $132.89B
• Dividend Yield: 14.2%
• Average Volume (3M): 16.50M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.08
• Revenue Growth: 6.04%
• EPS Growth: 50.60%
• Country: HK
• Employees: 27,064
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 8,093,379,400
• 10 Day Avg. Volume: 18,233,925
• 30 Day Avg. Volume: 16,502,241
• PEG Ratio: -0.31
• Price to Book (P/B): -38.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.69
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 8.67
• Enterprise Value/Ebitda: 5.18
• 1Y Price Target: $20.10
• Price Target Upside: 22.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Sands 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 Money

Sands 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.08B	6.53B	1.60B	2.87B	1.69B
Gross Profit	4.18B	5.24B	487.00M	1.73B	549.00M
EBITDA	2.15B	2.02B	-427.00M	25.00M	-557.00M
Net Income	1.04B	692.00M	-1.58B	-1.05B	-1.52B
Balance Sheet
Total Assets	11.17B	10.26B	10.56B	10.09B	10.55B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.36B	790.00M	678.00M	861.00M
Total Debt	8.16B	8.33B	10.20B	7.95B	7.04B
Total Liabilities	10.14B	10.26B	11.26B	9.21B	8.62B
Stockholders Equity	1.03B	-4.00M	-700.00M	888.00M	1.93B
Cash Flow
Free Cash Flow	1.21B	2.09B	-676.00M	-476.00M	-1.83B
Operating Cash Flow	2.07B	2.29B	-473.00M	88.00M	-816.00M
Investing Cash Flow	-810.00M	-180.00M	-325.00M	-634.00M	-1.02B
Financing Cash Flow	-658.00M	-2.45B	1.82B	366.00M	231.00M

Sands China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1928	73 Outperform	$132.89B	16.52	203.51%	14.20%	6.04%	50.60%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
SJMHF		$2.22B	3,430.00	0.03%	―	―	―
MCHVF		$5.94B	10.18		4.09%	―	―
GXYEF		$19.86B	17.14	11.92%	2.92%	―	―
NGCRF		$2.03B	18.10	5.24%	―	―	―
WYNMF		$3.66B	8.63		7.03%	―	―

Sands China Corporate Events

Sands China Ltd. Announces Successful 2025 AGM Resolutions

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

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

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

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.