Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.02, representing a potential upside of 24.3% from the current price of HKD 2.43 [1][2]. Core Insights - The company's Q4 2024 performance met expectations, with a continuous improvement in debt ratios. The overall market share slightly decreased, but the company is expected to benefit from Macau's ongoing recovery [2][3]. - The report highlights significant growth in net income, projecting a remarkable increase from a loss of HKD 2,009.8 million in 2023 to a profit of HKD 885.9 million in 2025, reflecting a growth rate of 27,585.7% [2][3]. - The company is focusing on enhancing its competitive advantage through the performance of "上葡京" and the installation of smart gaming tables, which are expected to be completed by November this year [2][3]. Financial Summary - **Revenue Growth**: The company reported a net income of HKD 21,623.2 million in 2023, with projections of HKD 30,400.2 million in 2025, indicating a growth rate of 33.0% [2][3]. - **EBITDA**: The EBITDA for 2023 was HKD 1,727.0 million, with a forecasted increase to HKD 4,517.7 million in 2025, showing a growth rate of 14.1% [2][3]. - **Net Profit**: The net profit is expected to rise significantly, from a loss in 2023 to a profit of HKD 885.9 million in 2025, with a projected net profit margin of 2.9% [2][3]. - **Debt Ratios**: The net debt/EBITDA ratio improved from 13.7 times to 6.3 times, indicating a healthier financial position [2][3]. Market Performance - The company's overall market share in Q4 2024 was 13.5%, a slight decrease of 0.4 percentage points from the previous quarter [2][3]. - The report notes that the company's cash balance is approximately HKD 3,220 million, with net debt around HKD 23,200 million [2][3]. Future Outlook - The company plans to invest HKD 15-20 billion in capital expenditures starting in 2025, which includes renovations and expansions to enhance its offerings [2][3]. - The report anticipates double-digit growth in gaming revenue for January-February 2025, with the market share expected to remain stable compared to Q4 2024 [2][3].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's performance in Q4 2024 met expectations, with a net revenue of HKD 7.47 billion, recovering to 87.2% of Q4 2019 levels. The gaming and non-gaming net revenues were HKD 6.95 billion and HKD 0.52 billion, respectively, recovering to 83.0% and 285.0% of the same period in 2019 [6] - The adjusted EBITDA for Q4 2024 was HKD 0.99 billion, aligning closely with market expectations of HKD 1.02 billion, and recovering to 83.8% of Q4 2019 levels [6] - The company is focused on upgrading its properties, with a target market share of 5% for its flagship property, and has implemented several strategies to enhance operational efficiency and customer experience [6] - The company does not express concern over satellite casinos potentially ceasing operations, as it believes it can effectively utilize its own gaming tables and staff to maintain performance [6] - The revenue forecast for 2024-2026 is maintained at HKD 28.92 billion, HKD 31.41 billion, and HKD 33.52 billion, respectively, with adjusted property EBITDA forecasts of HKD 3.79 billion, HKD 4.71 billion, and HKD 5.43 billion [6] Financial Projections - Total revenue projections for 2023A, 2024E, 2025E, and 2026E are HKD 21,623.2 million, HKD 28,921.2 million, HKD 31,408.8 million, and HKD 33,521.4 million, respectively, with year-on-year growth rates of 223.8%, 33.8%, 8.6%, and 6.7% [6][7] - Adjusted property EBITDA for the same years is projected at HKD 1,928.0 million, HKD 3,786.5 million, HKD 4,712.1 million, and HKD 5,427.4 million, with growth rates of 96.4%, 24.4%, and 15.2% for 2024E, 2025E, and 2026E [6][7] - The diluted earnings per share are forecasted to be HKD -0.28, HKD 0.03, HKD 0.18, and HKD 0.31 for 2023A, 2024E, 2025E, and 2026E, respectively [6][7]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's performance in Q4 2024 met expectations, with a net revenue of HKD 7.47 billion, recovering to 87.2% of Q4 2019 levels. The gaming and non-gaming net revenues were HKD 6.95 billion and HKD 0.52 billion, respectively, recovering to 83.0% and 285.0% of the same period in 2019 [6] - The adjusted EBITDA for Q4 2024 was HKD 0.99 billion, aligning closely with market expectations of HKD 1.02 billion, and recovering to 83.8% of Q4 2019 levels [6] - The company is focused on upgrading its properties, with a long-term market share target of 5% for its flagship property, and has implemented several strategies to enhance operational efficiency and customer experience [6] - The company does not express concern over satellite casinos potentially ceasing operations, as it believes it can effectively utilize its own gaming tables and staff to maintain performance [6] - The revenue forecasts for 2024-2026 are maintained at HKD 28.92 billion, HKD 31.41 billion, and HKD 33.52 billion, respectively, with adjusted property EBITDA forecasts of HKD 3.79 billion, HKD 4.71 billion, and HKD 5.43 billion [6] Financial Projections - Total revenue for 2023 is projected at HKD 21.62 billion, with a year-on-year growth of 223.8%. For 2024, the revenue is expected to reach HKD 28.92 billion, reflecting a growth of 33.8% [7] - The adjusted property EBITDA for 2023 is estimated at HKD 1.93 billion, with projections of HKD 3.79 billion for 2024, indicating a significant increase of 96.4% [7] - The earnings per share (EPS) is expected to turn positive in 2024, with estimates of HKD 0.03 per share, rising to HKD 0.31 by 2026 [7] - The company's EV/adjusted EBITDA ratios for 2024, 2025, and 2026 are projected at 11.12, 8.94, and 7.76, respectively [6][7]

Financial Performance - The company's gaming net revenue for the year ended December 31, 2024, was HKD 26,846 million, representing a 33.8% increase from HKD 20,059 million in 2023[3]. - Adjusted EBITDA for the group was HKD 3,764 million, up 117.9% from HKD 1,727 million in the previous year[3]. - The profit attributable to the company's owners was HKD 3 million, a significant recovery from a loss of HKD 2,010 million in 2023[3]. - The total revenue from hotel, dining, retail, leasing, and related services was HKD 2,186 million, reflecting a 20.4% increase from HKD 1,815 million in 2023[3]. - Total net revenue increased by 33.0% from HKD 21,623 million in 2023 to HKD 28,769 million in 2024[53]. - The group reported a pre-tax profit of HKD 158.8 million in 2024, a significant improvement from a loss of HKD 1,838.9 million in 2023[26]. - The total gross gaming revenue for the group was HKD 28,824 million, up 35.9% from HKD 21,204 million in 2023[56]. Revenue Breakdown - The group reported segment revenue for the gaming business of HKD 26,846.1 million in 2024, up from HKD 20,059.2 million in 2023, representing a growth of 33.9%[25]. - The hotel, restaurant, retail, and leasing business generated segment revenue of HKD 1,922.8 million in 2024, compared to HKD 1,564.0 million in 2023, reflecting an increase of 22.9%[25]. - The gross gaming revenue from the integrated resort reached HKD 5,238 million, a 94.7% increase compared to HKD 2,690 million in 2023[58]. - Casino gross gaming revenue increased by 18.4% to HKD 5,241 million from HKD 4,428 million[62]. - Satellite casino revenue grew by 24.9% to HKD 10,797 million from HKD 8,647 million[63]. Assets and Liabilities - The group’s total assets less current liabilities amounted to HKD 41,791.5 million as of December 31, 2024[9]. - The total assets decreased to HKD 48,724.9 million in 2024 from HKD 49,739.7 million in 2023, reflecting a decline of 2.0%[30]. - The total liabilities of the group decreased to HKD 34,548.9 million in 2024, down 3.1% from HKD 35,654.5 million in 2023[30]. - The company's financing costs were HKD 1,892.6 million, slightly down from HKD 1,930.1 million in the previous year[8]. - Non-current liabilities decreased from HKD 30,379.0 million in 2023 to HKD 27,615.5 million in 2024, a reduction of approximately 9.2%[10]. - The total outstanding bank loans as of December 31, 2024, was HKD 134.99 billion, down from HKD 152.36 billion on December 31, 2023[73]. Cash Flow and Financial Position - The company recorded cash, bank balances, and short-term bank deposits of HKD 3,217 million, with total debt amounting to HKD 26,458 million as of December 31, 2024[7]. - As of December 31, 2024, the group's cash and bank balances amounted to HKD 22.08 billion, a decrease of 37.7% from HKD 35.42 billion on December 31, 2023[73]. - The group's asset-liability ratio at the end of the reporting period was 51.1%, compared to 52.2% on December 31, 2023[74]. - The group has issued priority notes and convertible bonds totaling HKD 109.52 billion as of December 31, 2024, slightly up from HKD 109.07 billion on December 31, 2023[73]. Employee and Operational Insights - The group employed approximately 20,400 full-time employees as of December 31, 2024, with a low employee turnover rate[80]. - The group’s pre-tax profit for 2024 was impacted by total employee benefits costs of HKD 6,297.5 million, up from HKD 5,723.3 million in 2023[40]. Future Plans and Developments - The company plans to maintain a strong financial position to achieve sustainable long-term growth[54]. - The company will continue to focus on its operations in Macau while considering expansion opportunities in Asia[54]. - The company plans to acquire and convert office properties in Hengqin into a three-star hotel to expand its mid-range hotel market[66]. - The company will enhance its event hosting capabilities by adding two new venues at the Venetian, increasing capacity by 132%[69]. - The group plans to continue participating in promotional activities to enhance the "Pousada" brand's visibility and attract diverse tourist markets in 2025[70]. - The group aims to expand high-end service experiences and diversify tourism services to contribute to sustainable tourism development in Macau[71]. Accounting and Compliance - The group is currently evaluating the specific impact of the new Hong Kong Financial Reporting Standard No. 18 on its consolidated financial statements[21]. - The new accounting standards will take effect for annual periods beginning on or after January 1, 2027, with early application permitted[21]. - The group's consolidated financial statements for the year ended December 31, 2024, have been reviewed by the audit committee and confirmed by Deloitte[88]. - The auditor's report for the financial statements of the two years did not contain any reservations or emphasize any matters[89]. - The company has submitted financial statements for the year ended December 31, 2023, to the Companies Registry in accordance with Hong Kong Companies Ordinance[88].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 3.27 [2][3]. Core Insights - The company has transitioned from a loss to profit in Q3 2024, with a significant recovery in gaming revenue, achieving a 74.9% increase in gross gaming revenue compared to the previous quarter, and a 12.5% increase compared to the same period in 2019 [2][3]. - Non-gaming revenue also showed a positive trend, with a 10.4% increase to HKD 1.2 billion, contributing to the overall recovery of the company [2][3]. - The report highlights the performance of key properties, with "New Lisboa" and other self-operated venues showing a recovery to 69.4% and 84.8% of their 2019 levels, respectively [2][3]. Financial Summary - The company reported a net income of HKD 282.3 million for 2024, a significant turnaround from a loss of HKD 2,009.8 million in 2023 [5]. - EBITDA is projected to grow by 32.4% to HKD 3,826.2 million in 2024, with further growth expected in subsequent years [5]. - The company's total revenue is forecasted to reach HKD 28,633.7 million in 2024, reflecting a growth rate of 32.4% compared to 2023 [5]. Market Position - The company has improved its market share, with a reported increase of 40.8% in overall market share in Q3 2024 [2][3]. - The report indicates that the company is well-positioned to benefit from the ongoing recovery in the Macau gaming market, supported by strategic initiatives to enhance customer engagement and expand service offerings [2][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.0 [1] Core Views - The company's Q3 2024 performance exceeded expectations, with net revenue reaching HKD 7.5 billion, recovering to 91% of Q3 2019 levels [1] - Adjusted EBITDA for Q3 2024 was HKD 1.04 billion, surpassing the expected HKD 1.0 billion and recovering to 109.2% of Q3 2019 levels [1] - The company's market share in the gaming sector increased by 1.3 percentage points to 13.9% in Q3 2024 [1] - The new property, Grand Lisboa Palace, turned profitable in Q3 2024, contributing HKD 1.42 billion in gaming revenue, a 17.2% increase quarter-over-quarter [1] Financial Performance - Total revenue for 2023A was HKD 21,623.2 million, with a projected increase to HKD 28,921.2 million in 2024E, HKD 31,408.8 million in 2025E, and HKD 33,521.4 million in 2026E [1] - Adjusted property EBITDA for 2023A was HKD 1,928.0 million, expected to rise to HKD 3,786.5 million in 2024E, HKD 4,712.1 million in 2025E, and HKD 5,427.4 million in 2026E [1] - Earnings per share (EPS) for 2023A was -HKD 0.28, projected to improve to HKD 0.03 in 2024E, HKD 0.18 in 2025E, and HKD 0.31 in 2026E [1] Market Share and Operational Improvements - The company's market share in the VIP segment recovered to 26.9% of 2019 levels, while the mass market segment (including slot machines) recovered to 101.8% of 2019 levels [1] - Grand Lisboa Palace's adjusted property EBITDA reached HKD 165 million in Q3 2024, marking a turnaround from losses [1] - The company plans to enhance service quality by introducing new VIP programs, opening more leisure restaurants, and renovating the Sky Phoenix VIP area [1] Operational Costs - Daily operating expenses in Q3 2024 were approximately HKD 20.9 million, a 5.2% increase quarter-over-quarter, primarily due to higher summer traffic [1] - Grand Lisboa Palace's daily operating expenses were HKD 7.6 million, up 8.4% quarter-over-quarter, reflecting its growth phase and increased marketing personnel [1] Valuation Metrics - The company's EV/Adjusted EBITDA for 2024E is 11.7x, expected to decrease to 9.4x in 2025E and 8.2x in 2026E [1] - The current price-to-book (P/B) ratio is 1.41x, with a market capitalization of HKD 19.46 billion [2][3]

Financial Performance - The group's gaming net revenue for Q3 2024 was HKD 6.995 billion, an increase of 29.2% from HKD 5.413 billion in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was HKD 1.037 billion, representing an 83.2% increase from HKD 566 million in Q3 2023[4] - The adjusted EBITDA margin for Q3 2024 was 13.8%, up from 9.6% in Q3 2023, reflecting a 4.2 percentage point increase[4] - The total net revenue for Q3 2024 was HKD 7.499 billion, a 27.8% increase from HKD 5.868 billion in Q3 2023[4] - The group recorded a profit attributable to owners of HKD 101 million in Q3 2024, compared to a loss of HKD 410 million in Q3 2023[4] - The company's total gaming revenue reached HKD 7,498 million in Q3 2024, a 30.8% increase from HKD 5,731 million in Q3 2023[6] - The total revenue for the first nine months of 2024 was HKD 4,733 million, an 88.3% increase from HKD 2,514 million in the same period of 2023[7] - The company reported a 30.3% increase in total revenue for Q3 2024, amounting to HKD 2,017 million compared to HKD 1,548 million in Q3 2023[8] - The total revenue for Q3 2024 reached HKD 1,459 million, representing a 16.1% increase from HKD 1,257 million in Q3 2023[9] Revenue Breakdown - The group's gross gaming revenue for Q3 2024 was HKD 69.95 billion, up from HKD 54.13 billion in Q3 2023, marking a 29.2% increase[5] - The group's non-gaming revenue for Q3 2024 was HKD 5.04 billion, compared to HKD 4.55 billion in Q3 2023[4] - Non-gaming revenue for the first nine months of 2024 was HKD 17,589 million, up 39.9% from HKD 12,574 million in the same period of 2023[6] - Non-gaming revenue for the first nine months of 2024 was HKD 24,965 million, up 20.6% from HKD 20,708 million in the same period of 2023[9] - The group's electronic gaming gross revenue for Q3 2024 was HKD 620 million, an increase of 24.2% from HKD 499 million in the same period last year[5] - The company achieved a 24.2% increase in electronic gaming revenue, reaching HKD 620 million in Q3 2024, compared to HKD 499 million in Q3 2023[6] - The electronic gaming revenue for Q3 2024 was HKD 1,816 million, a 10.9% increase from HKD 1,638 million in Q3 2023[9] Operational Metrics - The occupancy rate for hotels reached 98.9% in Q3 2024, up from 85.4% in Q3 2023, reflecting a 13.5 percentage point increase[8] - The average daily room rate decreased by 10.7% to HKD 1,185 in Q3 2024 from HKD 1,327 in Q3 2023[8] - The average daily room rate for the "回力酒店" was HKD 195, reflecting a 3.7% increase from HKD 188 in Q3 2023[9] - The occupancy rate for "回力酒店" was 99.9%, up 0.3 percentage points from 99.6% in Q3 2023[9] Capital Expenditures and Debt - The group's cash, bank balances, and short-term bank deposits as of September 30, 2024, amounted to HKD 3.782 billion, with total debt of HKD 26.708 billion[3] - Capital expenditures for the group in Q3 2024 amounted to HKD 166 million, primarily for furniture, fixtures, and equipment, as well as property renovations[11] Other Financial Information - The group reported an unrealized fair value loss of HKD 16 million from equity securities investments, recognized in other comprehensive expenses[10] - The total amount wagered in the transcode segment was HKD 9,267 million in Q3 2024, a 43.7% increase from HKD 6,447 million in Q3 2023[7] - Adjusted property EBITDA for Q3 2024 was HKD 165 million, a significant increase of 711.1% compared to a loss of HKD 27 million in Q3 2023[7] - Adjusted property EBITDA for Q3 2024 was HKD 343 million, a slight decrease of 0.6% from HKD 345 million in Q3 2023[9] - The company reported a 24.6% increase in non-transcoded gaming revenue, totaling HKD 6,100 million in Q3 2024 compared to HKD 4,897 million in Q3 2023[6] - The gaming revenue (gross gaming revenue) for Q3 2024 was HKD 2,749 million, a 19.7% increase from HKD 2,297 million in Q3 2023[10]

Investment Rating - The report maintains a "Buy" rating for 澳博控股 (880 HK) with a target price raised to HKD 4.70, corresponding to a 2025 EV/EBITDA of 10x [2][7]. Core Insights - The performance of 上葡京 has shown improvement, with EBITDA turning positive since Q4 2023, and market share increasing from 1.3% in H1 2023 to 2.1% in H1 2024. The adjusted property EBITDA margin is also gradually increasing [2][4]. - The company has strategically developed popular dining and entertainment experiences, collaborating with Hong Kong TVB to create programs targeting Greater Bay Area travelers, which has resulted in significant promotional effects [3][4]. - The report indicates that the valuation is now above pre-pandemic levels, with the average EV/EBITDA from 2016-2019 being 8.9x, while the industry average was 13-14x during that period [4]. Financial Projections - For the fiscal year 2024, the projected revenue is HKD 28,883 million, with a year-on-year growth of 33.58% [6]. - The net profit attributable to the parent company is expected to be HKD 520.03 million in 2024, a significant recovery from a loss of HKD 2,010 million in 2023 [6][12]. - The EBITDA is projected to reach HKD 3,755 million in 2024, with a further increase to HKD 4,764 million in 2025 [12]. Market Trends - During the recent National Day holiday, Macau's gaming industry saw a resurgence, with visitor numbers reaching 99 million, recovering to 119% of 2019 levels, and daily gaming revenue approaching pre-pandemic figures [5]. - The report highlights that the strategy of inviting high-profile performers has shifted, aiming to attract high-spending customers, which is expected to positively impact gaming revenue [5].

Financial Performance - Group's total net revenue increased by 47.4% to HKD 13.801 billion in the first half of 2024 compared to HKD 9.362 billion in the same period in 2023[3][7] - Gaming net revenue rose by 48.3% to HKD 12.897 billion in H1 2024 from HKD 8.695 billion in H1 2023[3][7] - Adjusted EBITDA surged by 275.9% to HKD 1.734 billion in H1 2024 compared to HKD 461 million in H1 2023[3][7] - The company's attributable loss narrowed to HKD 162 million in H1 2024 from HKD 1.264 billion in H1 2023[3][7] - Total revenue for the six months ended June 30, 2024, was HKD 13,801.3 million, a significant increase from HKD 9,361.6 million in the same period in 2023[27] - Gaming revenue for the six months ended June 30, 2024, was HKD 12,897.0 million, compared to HKD 8,695.1 million in the same period in 2023[27] - The company reported a net loss of HKD 108.6 million for the six months ended June 30, 2024, a significant improvement from a net loss of HKD 1,196.9 million in the same period in 2023[27] - Net loss for the period amounted to HKD 108.6 million, compared to a net loss of HKD 1,196.9 million in the same period last year[33] - Total comprehensive loss for the period was HKD 114.4 million, a significant improvement from HKD 1,234.6 million in the previous year[33] - Pre-tax loss narrowed to HKD 85.2 million in the first half of 2024, significantly improved from a pre-tax loss of HKD 1,196.9 million in the same period in 2023[44] - The company reported a pre-tax loss of HKD 162.4 million in 2024, compared to a pre-tax loss of HKD 1,264.1 million in 2023[59] - The basic and diluted loss per share improved to HKD 2.3 cents in 2024 from HKD 17.8 cents in 2023[60] Property Performance - Grand Lisboa Palace's gross revenue reached HKD 2.956 billion, with gaming revenue of HKD 2.325 billion and non-gaming revenue of HKD 631 million in H1 2024[4] - Grand Lisboa's gross revenue stood at HKD 3.8 billion, including HKD 3.66 billion from gaming and HKD 140 million from non-gaming in H1 2024[4] - Occupancy rate at Grand Lisboa Palace increased by 10.9% to 94.8% in H1 2024, while average daily rate decreased by 15.1% to HKD 1,155[4] - Grand Lisboa Hotel's occupancy rate rose by 10.7% to 98.5% in H1 2024, with average daily rate increasing by 19.5% to HKD 1,226[4] - Revenue from the Grand Lisboa Palace increased by 106.7% to HKD 2,956 million, with casino gross gaming revenue up 124.9% to HKD 2,325 million[10] - Adjusted property EBITDA for the Grand Lisboa Palace improved significantly to HKD 192 million, compared to a loss of HKD 292 million in the previous year[10] - Non-rolling chip win amount at the Grand Lisboa Palace surged by 166.2% to HKD 1,363 million, with a win rate increase of 1.7 percentage points to 17.3%[10] - The Lisboa property saw a 58.1% increase in total revenue to HKD 3,800 million, driven by a 61.5% rise in casino gross gaming revenue[12] - Adjusted property EBITDA for the Lisboa property more than doubled, increasing by 113.5% to HKD 1,010 million[12] - The Sofitel Macau at Ponte 16 reported a 20.3% increase in total revenue to HKD 2,655 million, with casino gross gaming revenue up 21.6%[14] - Satellite casinos generated HKD 5,285 million in casino revenue, a 39.0% increase from the previous year, with adjusted property EBITDA improving by 86.1%[15] Liquidity and Financial Position - The group held HKD 3.433 billion in cash, bank balances, short-term bank deposits, and pledged bank deposits as of June 30, 2024[4] - The group's syndicated loan facility includes HKD 9 billion in term loans and HKD 10 billion in revolving credit, with HKD 4.1 billion undrawn as of June 30, 2024[4] - Bank balances and cash decreased by 31.6% to HKD 2.424 billion as of June 30, 2024, compared to HKD 3.542 billion at the end of 2023[19] - Total outstanding bank loans decreased to HKD 14.012 billion as of June 30, 2024, from HKD 15.236 billion at the end of 2023[19] - Asset-to-liability ratio stood at 52.4% as of June 30, 2024, slightly up from 52.2% at the end of 2023[20] - Committed capital expenditure obligations increased to HKD 744 million as of June 30, 2024, from HKD 427 million at the end of 2023, with HKD 587 million allocated for government bidding projects[20] - Mortgaged properties and equipment with a book value of HKD 33.565 billion and right-of-use assets of HKD 1.689 billion as of June 30, 2024[21] - Total assets as of June 30, 2024, were HKD 44,999.6 million, slightly decreased from HKD 45,305.9 million as of December 31, 2023[29] - Total liabilities as of June 30, 2024, were HKD 29,148.4 million, decreased from HKD 30,379.0 million as of December 31, 2023[30] - The company's net asset value as of June 30, 2024, was HKD 13,969.8 million, slightly decreased from HKD 14,085.2 million as of December 31, 2023[30] - The company's equity attributable to owners of the company as of June 30, 2024, was HKD 13,767.4 million, slightly decreased from HKD 13,935.6 million as of December 31, 2023[30] - The company has unutilized bank financing facilities of HKD 4.05 billion as of June 30, 2024[37] - Current liabilities exceeded current assets by approximately HKD 1.881 billion as of June 30, 2024[37] - Capital commitments of the group amounted to HKD 744 million as of June 30, 2024[37] - The company's directors believe the group has sufficient liquidity to meet its financial obligations for the next 12 months[37] - Total assets of the group decreased slightly to HKD 48,328.3 million as of June 30, 2024, compared to HKD 49,739.7 million as of December 31, 2023[50] - Total liabilities of the group decreased to HKD 34,358.5 million as of June 30, 2024, from HKD 35,654.5 million as of December 31, 2023[50] - The gaming business segment assets stood at HKD 35,211.9 million as of June 30, 2024, slightly down from HKD 35,996.7 million as of December 31, 2023[50] - The hotel, catering, retail, and leasing business segment assets were HKD 10,036.2 million as of June 30, 2024, compared to HKD 10,298.7 million as of December 31, 2023[50] - Bank loans for the gaming business decreased to HKD 13,852.6 million as of June 30, 2024, from HKD 15,056.7 million as of December 31, 2023[50] - Unsecured notes for the gaming business remained relatively stable at HKD 9,420.1 million as of June 30, 2024, compared to HKD 9,413.7 million as of December 31, 2023[50] - Property and equipment decreased to HKD 37,806.1 million in 2024 from HKD 38,353.9 million in 2023, with a notable decrease in the value of leased land and buildings[62] - The company's right-of-use assets decreased slightly to HKD 2,561.4 million in 2024 from HKD 2,483.5 million in 2023[62] - Deposits for property and equipment purchases increased to HKD 550.6 million as of June 30, 2024, compared to HKD 317.7 million as of December 31, 2023[65] - The company's pledged bank deposits for bank facilities amounted to HKD 970.9 million as of June 30, 2024[67] - The interest rates on pledged bank deposits ranged from 4.00% to 4.10% as of June 30, 2024[68] - Advances to a gaming promoter and customers decreased to HKD 27.2 million as of June 30, 2024, from HKD 38.0 million as of December 31, 2023[69] - The total overdue amount of advances to gaming customers was HKD 7.7 million as of June 30, 2024, with HKD 0.8 million overdue for 90 days or more[69] - Prepayments increased to HKD 250.2 million as of June 30, 2024, compared to HKD 179.5 million as of December 31, 2023[69] - Other receivables from related parties amounted to HKD 202.7 million as of June 30, 2024, up from HKD 173.1 million as of December 31, 2023[74] - No additional impairment provisions or reversals were made for advances to a gaming intermediary and customers, other receivables from a service provider, and lease receivables for the six months ended June 30, 2023, and June 30, 2024[75] - Trade payables decreased to HKD 326.5 million as of June 30, 2024, from HKD 348.6 million as of December 31, 2023[76] - The average credit period for trade payables is 90 days, with no interest charged on overdue amounts[79] - The company's bank loans include syndicated secured bank loans totaling HKD 14,012.0 million as of June 30, 2024, compared to HKD 15,235.9 million as of December 31, 2023[81] - The Grand Lisboa Palace secured bank loan amounted to HKD 13,852.6 million as of June 30, 2024, down from HKD 15,056.7 million as of December 31, 2023[82] - The company recorded a loss of HKD 16.1 million due to the modification of the Grand Lisboa Palace bank loan repayment plan for the six months ended June 30, 2024[84] - The secured syndicated bank loan for the Grand Lisboa Palace project carries an effective annual interest rate of 6.36% as of June 30, 2024, down from 7.33% as of December 31, 2023[84] - The Grand Lisboa Palace bank loan is secured by non-gaming properties and equipment with a carrying value of HKD 33.184 billion and right-of-use assets with a carrying value of HKD 1.637 billion as of June 30, 2024[84] - The company revised the financing agreement for the Sixteen Pu Bank loan, extending the maturity date to June 2025 with a revised limit of MOP 273 million and HKD 230 million[85] - The actual annual interest rate for the secured bank loan as of June 30, 2024, was 7.15%, down from 8.09% at the end of 2023[85] - The company issued unsecured notes totaling HKD 9.42 billion as of June 30, 2024, with proceeds used for refinancing syndicated secured bank loans and general working capital[86] - The company's subsidiary issued HKD 1.906 billion in convertible bonds at a 2% interest rate, with the option to convert into ordinary shares at HKD 3.78 per share[92] - The company's operating cash flow before working capital changes was HKD 1.7857 billion for the six months ended June 30, 2024, compared to HKD 534.2 million in the same period in 2023[95] - The company's net cash from operating activities was HKD 1.6426 billion for the six months ended June 30, 2024, slightly down from HKD 1.7375 billion in the same period in 2023[95] - The company's total issued and fully paid ordinary shares as of June 30, 2024, were 7,101,805,366, with a total value of HKD 14.4151 billion[94] - The company's final holding company loan amounted to HKD 2 billion, with a fixed annual interest rate of 4%, and is classified as a non-current liability[89] - The company's subsidiary's non-controlling interest payable was HKD 329 million as of June 30, 2024, with an estimated interest of HKD 4.3 million at an annual rate of 2.57%[88] - The company's convertible bonds had a liability portion of HKD 1.528 billion and an equity portion of HKD 574.7 million as of June 30, 2024[93] - The company issued $500 million 4.50% senior notes due 2026, $500 million 4.85% senior notes due 2028, HK$1.25 billion 3.9% senior notes due 2026, and MOP 300 million 3.9% senior notes due 2026 through its subsidiaries Champion Path and Champion Moments Limited[146] - The company issued HK$1.906 billion 2% convertible bonds with a 5-year maturity to SJM Holdings on June 22, 2022, with an initial conversion price of HK$4.07 per share, which was later adjusted to HK$3.78 per share due to the rights issue[148] - If the convertible bonds are fully exercised at the adjusted conversion price of HK$3.78 per share, 504,232,804 shares will be issued, representing approximately 7.10% of the total issued shares of 7,101,805,366 as of June 30, 2024[149] - The company recorded a loss per share for the six months ended June 30, 2024, and the assumption of exercising convertible bonds would result in a reduction of the loss per share[150] - The company has the ability to fulfill its redemption obligations under the convertible bonds based on its bank balance and cash as of June 30, 2024[150] - No conversion, redemption, or cancellation of convertible bonds occurred during the six months ended June 30, 2024[150] - The company issued HKD 1.25 billion 3.9% priority notes due in 2026, listed on MOX[157] - The company issued MOP 300 million 3.9% priority notes due in 2026, listed on MOX[158] - Champion Path issued $500,000,000 of 4.50% senior notes due in 2026, listed on the Stock Exchange[159] - Champion Path issued $500,000,000 of 4.85% senior notes due in 2028, listed on the Stock Exchange[160] - Adjusted EBITDA is defined as profit or loss before interest income/expense, taxes, depreciation, and amortization, among other adjustments[161] - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total net revenue[162] - The company's subsidiary, Champion Moments Limited, is a wholly-owned entity registered in the British Virgin Islands[164] - The company's subsidiary, Champion Path Holdings Limited, is a wholly-owned entity registered in the British Virgin Islands[165] - The company's subsidiary, Champion Power Global Limited, is a wholly-owned entity registered in the British Virgin Islands[166] - The company has a secured bank loan for the Grand Lisboa Palace project[168] Business Operations and Strategy - The "Individual Visit Scheme" expanded to include 10 additional mainland Chinese cities, bringing the total to 59 cities, enhancing tourism opportunities[16] - Acquired two strategic assets in Q2 2024 to enhance dining leadership and mass market influence, including the iconic Golden Jubilee Entertainment Center, expected to open by end of 2024[17] - Employee count remained stable at approximately 19,700 full-time employees as of June 30, 2024, with low turnover rate in H1 2024[23] - Five restaurants under the group were listed in "Tatler Dining 20 Macau" in 2024, reinforcing its leadership in Macau's dining scene[18] - Actively participated in overseas roadshows in key markets including Singapore, Indonesia, South Korea, Thailand, and Hong Kong to promote "Tourism +" products[18] - Sponsored major events such as the FAI Indoor Skydiving World Cup and the Macau International Dragon Boat Race to enhance Macau's reputation as a high-end sports tourism destination[17] - Gaming business revenue increased to HKD 12,897.0 million in the first half of 2024, up from HKD 8,695.1 million in the same period in 2023, representing a 48.3% growth[44] - Hotel, catering, retail, and leasing business revenue rose to HKD 904.3 million in the first half of 2024, compared to HKD 666.5 million in the same period in 2023,

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.90, representing a potential upside of 24.5% from the current price of HKD 2.33 [2]. Core Insights - The second quarter performance of the company met expectations, with a slight quarter-on-quarter increase in gross gaming revenue of 0.1% to HKD 6.89 billion, recovering to 69.9% of the 2019 level [1]. - The market share of the company increased by 0.2 percentage points to 12.6% in the second quarter, with further improvement noted in July and August, reaching 13.5% [1]. - The performance of "The Venetian" and other self-operated venues showed mixed results, with "The Venetian" experiencing a 5.0% decline in gaming revenue, while other venues saw slight increases [1]. - "The Parisian" recorded a revenue of HKD 1.54 billion, with a quarter-on-quarter growth of 9.3%, and its EBITDA increased by 17.2% to HKD 104 million [1]. - The company is expected to benefit from the recovery of Macau's gaming market, with long-term growth and competitive advantages anticipated from "The Parisian" [1]. Financial Summary - For the fiscal year ending December 31, 2022, the company reported a net income of HKD 6,678.6 million, with a projected increase to HKD 27,911.4 million in 2024, reflecting a growth rate of 29.1% [3]. - EBITDA is expected to rise from HKD 1,727.0 million in 2023 to HKD 3,721.2 million in 2024, indicating a growth rate of 115.5% [3]. - The net profit is projected to turn positive in 2024, reaching HKD 288.3 million, compared to a loss of HKD 2,009.8 million in 2023 [3]. - The company’s cash position is approximately HKD 34.3 billion, with net debt around HKD 235.3 billion [1].