Core Viewpoint - Goldman Sachs upgraded the rating of Kwan Cheung Holdings (03918) from "Neutral" to "Buy" due to confidence in the company's increasing gaming revenue and EBITDA [1] Group 1: Company Performance - Kwan Cheung Holdings' stock rose by 3.07%, reaching HKD 5.37, with a trading volume of HKD 21.02 million [1] - The company is expected to see a 13% year-on-year growth in gaming revenue and a 15% increase in EBITDA for the fiscal year 2026 [1] - The estimated free cash flow yield is approximately 11%, and the dividend yield is around 8% [1] Group 2: Market Conditions - The newly opened Dechong International Airport has significantly increased passenger capacity [1] - Flight numbers to Phnom Penh have shown strong growth, with an overall year-on-year increase of 10% to 15%, and a 40% to 50% increase in flights from China [1] - The Cambodian government has recently implemented a visa-free policy for Chinese travelers [1] Group 3: Valuation and Forecast - The current valuation of the company is not considered excessive, with an enterprise value to post-tax EBITDA ratio of 5 times for the fiscal year 2026 [1] - Historical industry upcycle valuations have reached 6 to 7 times [1] - Goldman Sachs adjusted its EBITDA forecasts for 2025 to 2027, increasing estimates by 34% to 40%, and raised the target price from HKD 3.88 to HKD 7.50 [1]
港股异动 | 金界控股(03918)逆势涨超3% 高盛对其博彩总收入增长充满信心