Sands China (1928) AI Stock Analysis

• Market Cap: $158.87B
• Dividend Yield: 2.4%
• Average Volume (3M): 17.16M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.06
• Revenue Growth: -3.13%
• EPS Growth: -13.65%
• Country: HK
• Employees: 27,064
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.23
• Shares Outstanding: 8,093,379,400
• 10 Day Avg. Volume: 11,761,528
• 30 Day Avg. Volume: 17,155,862
• PEG Ratio: 0.40
• Price to Book (P/B): 21.11
• Price to Sales (P/S): 3.07
• P/FCF Ratio: 17.99
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 25.66
• Enterprise Value/Gross Profit: 44.20
• Enterprise Value/Ebitda: 87.66
• 1Y Price Target: $23.42
• Price Target Upside: 15.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$24.50 ▲(20.57% Upside)

Sands China's strong financial recovery and positive technical indicators are the primary drivers of the stock's score. The company's high leverage and moderate valuation present some risks, but the overall outlook remains positive.

Positive Factors

Revenue Recovery

The substantial revenue recovery indicates strong market demand and effective business strategies, enhancing long-term growth prospects.

Profitability Improvement

Improved profitability margins reflect effective cost management and operational efficiency, which are crucial for sustainable financial health.

Cash Flow Strength

A strong cash flow position enhances financial flexibility, allowing for reinvestment and debt reduction, supporting long-term stability.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities.

Volatile Revenue Growth

Volatility in revenue growth indicates sensitivity to market conditions, which could impact long-term planning and investment strategies.

Cash Flow Volatility

Inconsistent cash flow generation can challenge financial planning and limit the company's ability to manage unexpected expenses.

Sands China Business Overview & Revenue Model

Company Description

Sands China Ltd. is a leading developer and operator of integrated resorts in Macao, a Special Administrative Region of the People's Republic of China. The company is a subsidiary of Las Vegas Sands Corp. and operates several major properties, including The Venetian Macao, The Parisian Macao, and Sands Macao. Sands China focuses on providing a wide array of entertainment, gaming, and hospitality services, with its core offerings including casino operations, hotel accommodations, shopping, dining, and convention spaces.

How the Company Makes Money

Sands China generates revenue primarily through its casino operations, which include gaming tables and slot machines. The company earns significant income from gaming activities, driven by both local and international tourists. Additionally, Sands China profits from its non-gaming segments, including hotel stays, food and beverage services, retail shopping, and entertainment events. The company also capitalizes on conventions and exhibitions held at its properties, providing venues and services for large gatherings. Strategic partnerships with travel agencies and promotional deals aimed at attracting high-roller clientele further enhance its revenue streams. Factors such as Macao's tourism policies, the overall health of the gaming market, and the company’s ability to innovate in its service offerings also play critical roles in its financial performance.

Sands China Financial Statement Overview

Summary

Sands China has shown a strong recovery with increased revenue and profitability. However, high leverage and past volatility pose risks, requiring careful debt management and consistent cash flow generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.02B	7.08B	6.53B	1.60B	2.87B	1.69B
Gross Profit	4.08B	4.18B	5.24B	487.00M	1.73B	549.00M
EBITDA	2.06B	2.15B	2.02B	-427.00M	25.00M	-557.00M
Net Income	917.00M	1.04B	692.00M	-1.58B	-1.05B	-1.52B
Balance Sheet
Total Assets	10.08B	11.17B	10.26B	10.56B	10.09B	10.55B
Cash, Cash Equivalents and Short-Term Investments	985.00M	1.97B	1.36B	790.00M	678.00M	861.00M
Total Debt	7.09B	8.16B	8.33B	10.20B	7.95B	7.04B
Total Liabilities	8.96B	10.14B	10.26B	11.26B	9.21B	8.62B
Stockholders Equity	1.12B	1.03B	-4.00M	-700.00M	888.00M	1.93B
Cash Flow
Free Cash Flow	993.00M	1.21B	2.09B	-676.00M	-476.00M	-1.83B
Operating Cash Flow	1.97B	2.07B	2.29B	-473.00M	88.00M	-816.00M
Investing Cash Flow	-924.00M	-810.00M	-180.00M	-325.00M	-634.00M	-1.02B
Financing Cash Flow	-1.85B	-658.00M	-2.45B	1.82B	366.00M	231.00M

Sands China Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.32
• 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:1928, the sentiment is Neutral. The current price of 20.32 is below the 20-day moving average (MA) of 20.71, below the 50-day MA of 20.33, and above the 200-day MA of 18.00, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 23.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1928.

Sands China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2282	74 Outperform	$58.47B	13.58	452.88%	5.65%	5.59%	-4.38%
0027	72 Outperform	$174.30B	18.32	12.59%	3.09%	4.94%	15.38%
1928	72 Outperform	$158.87B	22.24	111.35%	2.40%	-3.13%	-13.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1128	61 Neutral	$34.07B	18.43	―	6.02%	-4.41%	-31.45%
3918	55 Neutral	HK$23.71B	11.73	11.98%	1.54%	8.23%	175.51%
0880	40 Neutral	$18.54B	―	-0.13%	―	12.29%	98.20%

Sands China Corporate Events

Sands China Highlights LVS’s Q3 Financial Results

Sands China Ltd. announced the financial results of its controlling shareholder, Las Vegas Sands Corp. (LVS), for the fiscal third quarter ended September 30, 2025. LVS, which owns a majority stake in Sands China, filed its quarterly report with the SEC, highlighting financial information prepared under US GAAP, differing from the IFRS used by Sands China. The announcement underscores the importance of understanding these accounting differences for stakeholders and potential investors in Sands China.

Sands China Reports Revenue Growth in Q3 2025

Sands China Ltd. reported an increase in total net revenues by 7.5% to US$1.90 billion for the third quarter of 2025, compared to the same period in 2024. The company’s net income rose slightly to US$272 million, and its adjusted property EBITDA increased to US$601 million. These results reflect the company’s strategic investments in Macao and Singapore, positioning it for future growth in the hospitality and gaming sectors.

Sands China Ltd. Announces Board Composition and Committee Structure

Sands China Ltd. announced the composition of its board of directors and the establishment of five committees, including the Audit, Remuneration, Nomination, Capex, and ESG Committees. This organizational structure aims to enhance governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

Sands China Ltd. Updates ESG Committee Terms

Sands China Ltd. has updated the terms of reference for its Environmental, Social, and Governance (ESG) Committee, which was initially established in 2021. The ESG Committee is tasked with overseeing the company’s ESG strategy, reporting, and policy implementation. This update reflects Sands China’s commitment to enhancing its governance of environmental and social matters, potentially impacting its operational transparency and stakeholder trust.

Sands China Ltd. Appoints Ms. Chung as Independent Non-Executive Director

Sands China Ltd. has announced the appointment of Ms. Chung Kit Yi Kitty as an Independent Non-Executive Director and a member of the Audit Committee, effective October 16, 2025. Ms. Chung brings extensive experience in auditing, accounting, and financial management, having previously served as a partner at PricewaterhouseCoopers. Her appointment is expected to enhance the company’s governance and oversight capabilities, potentially strengthening its market position and stakeholder confidence.