SJM HOLDINGS(00880) 第一上海证券·2024-09-18 06:12Investment 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].