SJM has mixed holiday fortunes

Business | Stella Zhai 4 Oct 2019

Ambrose So Shu-fai, vice chairman and chief executive of SJM (0880), said revenue from the company's casino resorts during the Golden Week has been below what was expected, though it is satisfied with the number of visitors.

Revenue from mass-market table gaming went well, So said, while the VIP business failed to meet expectations.

And the hotel occupancy rate reached over 90 percent with lower room rates.

Looking ahead, the opening of SJM's Grand Lisboa Palace looks likely in the second half of next year with the project completed and now awaiting official checks and permissions.

So also said some shops in the project's malls could open, but there are questions as not all the stores have been taken.

He also said the number of gaming tables in the project could be increased.

On the revenue outlook for next year, So said that was dependent on how the China-US trade talks go and whether the unrest in Hong Kong is fully resolved.

Analysts, however, are underweight on this year's overall gaming revenue in Macau.

Merrill Lynch expects casino revenue in October to drop 5.7 percent from 12 months ago. Nomura Securities, meanwhile, predicts the full-year gaming revenue will decrease by 2-3 percent.

Shares of SJM went up 3.3 percent to HK$7.82 yesterday while other casino operators gained overall.

Blue-chip Galaxy Entertainment (0027) rose 2.67 percent to HK$50, and Sands China (1928), another blue chip, closed 1.82 percent higher at HK$36.30.

Wynn Macau (1127), Melco International Development (0200) and MGM China (2282) also jumped by over 2 percent.


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