Morgan Stanley released a research report stating that it gave Sands China (01928) a “in sync with the market” rating, downgraded the 2025 EBITDA forecast by 3% to US$2.9 billion, lowered the earnings forecast per share by 4%, raised the dividend rate to HK$1, the dividend ratio was 5.3%, and the target price was reduced by 11% from HK$23.5 to HK$21 billion, mainly due to the fact that the forecast for the company's 2024 EBITDA in 2024 was reduced by 8% to US$2.4 billion, only 78% lower than market expectations.
The bank said that the forecast for Sands China's midmarket share in 2024 is declining, and the actual share for the first quarter of 2024 is lower. However, this was partly offset by operating indicators and projected declines in investment rates. As a result, Damo lowered its 2024 earnings per share forecast by 14%. The 2024 dividend forecast fell to HK$0.5, with a profit margin of 2.6%. It is believed that the company will prioritize capital expenditure and US$1.8 billion bonds due in August 2025.