Haitong Securities International·2025-09-08 14:33Investment Rating - The report does not explicitly state an investment rating for SJM Holdings, but it provides detailed financial performance metrics that may inform investment decisions. Core Views - SJM Holdings reported a net revenue of HKD 14.64 billion for 25H1, a year-on-year increase of 6.1%, while adjusted EBITDA decreased by 5.1% to HKD 1.65 billion, with an adjusted EBITDA margin of 11.2%, down 1.3 percentage points year-on-year [8][12] - In 25Q2, net revenue reached HKD 7.16 billion, up 4.0% year-on-year, but down 4.3% quarter-on-quarter. Gaming revenue contributed HKD 6.68 billion, a 3.8% increase year-on-year [2][9] - The company's gaming gross revenue (GGR) for 25Q2 was HKD 7.27 billion, reflecting a year-on-year increase of 5.4%, but this growth rate was below the industry average of 8.3% [3][10] - The adjusted EBITDA for 25Q2 was HKD 0.69 billion, down 20.9% year-on-year and 28.2% quarter-on-quarter, with a margin of 9.6%, indicating a decline in profitability [4][11] Financial Performance Summary - For 25H1, SJM Holdings achieved a net revenue of HKD 14.64 billion, with adjusted EBITDA of HKD 1.65 billion and an EBITDA margin of 11.2% [8] - In 25Q2, the breakdown of net revenue included HKD 6.68 billion from gaming and HKD 0.48 billion from non-gaming activities, with respective year-on-year changes of +3.8% and +7.1% [2][9] - The GGR composition showed that VIP, mass market, and slot machines generated HKD 0.46 billion, HKD 6.1 billion, and HKD 0.71 billion, with year-on-year changes of -13.9%, +5.6%, and +20.9% respectively [3][10] Market Share and Strategic Developments - SJM Holdings' market share in 25Q2 was 12.5%, a decrease of 1.2 percentage points from 25Q1 [5][12] - The company plans to acquire a property near the Hengqin Port for conversion into a three-star hotel with approximately 250 rooms, expected to be completed within 24 months after obtaining necessary permits [5] - Additionally, SJM Holdings intends to purchase a former gaming area within the Lisboa Hotel for HKD 529 million, aiming to enhance operational efficiency and profitability [6]