Haitong Securities International·2025-11-13 09:08Investment Rating - The report does not explicitly state an investment rating for SJM Holdings Core Insights - SJM Holdings reported a net revenue of HKD 7.03 billion for 25Q3, a decrease of 6.2% year-on-year and 1.7% quarter-on-quarter, with adjusted EBITDA of HKD 0.88 billion, down 15.0% year-on-year but up 28.1% quarter-on-quarter, resulting in an adjusted EBITDA margin of 12.5%, down 1.3 percentage points year-on-year [1][9][13] - The company's market share in 25Q3 was 11.8%, down from 12.3% in 25Q2 and 13.9% in 24Q3, indicating a slight decline in competitive positioning [6][14] Summary by Sections Financial Performance - In 25Q3, SJM Holdings achieved a net revenue of HKD 7.03 billion, with gaming and non-gaming contributions of HKD 6.54 billion and HKD 0.5 billion respectively, reflecting year-on-year changes of -6.5% and -1.4% [2][10] - The total betting amount, excluding satellite casinos, reached HKD 55.41 billion, up 21.1% year-on-year and 3.5% quarter-on-quarter, with VIP, mass, and slot machine betting amounts showing significant increases [3][11] - The gross gaming revenue (GGR) was HKD 7.14 billion, down 4.7% year-on-year and lower than the industry growth rate of +12.5%, with a quarter-on-quarter decline of 1.8% [4][12] Property Performance - The adjusted EBITDA for Grand Lisboa Palace was HKD 0.11 billion, with an adjusted EBITDA margin of 5.8%, while Grand Lisboa's adjusted EBITDA was HKD 0.47 billion with a margin of 23.5% [5][13] - The total revenue from Grand Lisboa Palace and Grand Lisboa was HKD 1.91 billion and HKD 2.0 billion respectively, with year-on-year changes of +7.4% and -0.7% [2][10] Market Dynamics - The company's market share has declined, attributed to the closure of satellite casinos, which may impact overall market positioning but could enhance profitability [7][14] - Capital expenditures in 25Q3 were HKD 0.412 billion, primarily for property renovations and equipment [7]