Movement Alert|SANDS CHINA LTD Falls 3.11% in Regular Trading, Sector-Wide Weakness Persists After Q2 Earnings Miss and Analyst Downgrades

Market Focus07-31

On July 31, SANDS CHINA LTD declined 3.11% in regular trading, trading at 14.63 HKD/share, with turnover of HKD 116 million. The broader Casinos and Gaming sector fell in tandem, with SJM Holdings down 3.05%, Melco International down 2.37%, Wynn Macau down 2.25%, Galaxy Entertainment down 1.05%, and MGM China down 0.26%.

The decline comes amid continued pressure following the company's disappointing Q2 results reported on July 23, which showed net income falling 50% year-over-year to USD 107 million, while adjusted property EBITDA dropped to USD 430 million from USD 566 million in the prior-year period. UBS characterized the Q2 EBITDA as the worst since the pandemic. Goldman Sachs subsequently lowered its target price to HKD 19.5 on July 28, citing the EBITDA miss. Management attributed the shortfall to extremely low VIP win rates and the impact of global football events, emphasizing that Q2 results do not reflect the company's true earnings capacity.

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