金沙中国有限公司：2024年三季报业绩点评，业绩略超预期，物业翻新扰动将于Q4达峰，利润率有望平稳恢复

Investment Rating - Buy (Maintained) [1] Core Views - Sands China's 3Q24 performance slightly exceeded market expectations, with net revenue reaching $1.77 billion, slightly above the expected$1.74 billion, and recovering to 83.1% of the same period in 2019 [2] - The company's adjusted property EBITDA for 3Q24 was $590 million, in line with market expectations, recovering to 77.5$1.68 billion, recovering to 82.6% of the same period in 2019, with VIP and mass market (including slot machines) gaming revenues recovering to 40.4% and 94.2% of 2019 levels, respectively [1] - The company's gaming and non-gaming revenues in 3Q24 were $1.34 billion and$430 million, respectively, recovering to 80.2% and 97.3% of 2019 levels [2] - The adjusted property EBITDA margin in 3Q24 was 33.0%, down 2.7 percentage points from the same period in 2019, primarily due to the impact of the Londoner renovation and slower recovery in mass market gaming [3] Renovation Impact - The Londoner Phase II renovation project affected approximately 2,500 rooms in 3Q24, representing 63% of the Sheraton Grand Macao's rooms and 20% of the company's total room inventory [4] - The company expects the renovation disruption to peak in 4Q24, with 3,100-3,200 rooms temporarily closed, and only around 300 new suites remaining open [4] Future Outlook - Sands China's management is confident in the recovery of EBITDA margins by 2025, driven by the completion of the Londoner Phase II renovation in 2Q25 and the expected rebound in visitor numbers to Macau, particularly in the mass market segment [3] - The company's 2024-2026 revenue forecasts are maintained at $7.11 billion,$7.90 billion, and $8.39 billion, respectively, with adjusted property EBITDA forecasts of$2.27 billion, $2.75 billion, and$3.12 billion [4] - The current stock price implies 2024-2026 EV/EBITDA multiples of 9.6x, 7.9x, and 7.0x, respectively, with a target price of HKD 25.5, implying 2024-2026 EV/EBITDA multiples of 11.6x, 9.6x, and 8.5x [4]