Sands China (1928 HK): Buy: Seasonality and cost control can support 2H

Research evidence excerpt

Sands China (1928 HK): Buy: Seasonality and cost control can support 2H

q-o-q market ROE (%) 73.7 60.5 69.9 68.8

share uptick assumption into 2H26 is achievable and new management initiatives to

52-WEEK PRICE (HKD)improve operational efficiency are expected to bear fruit over time.

24.00

Looking ahead: Sands’ continued efforts in service elevation and premium product are

translating into share gains in the premium segment. VIP rolling chip volume share 17.50

reached market-leading 26% in 2Q, with stronger penetration of super VIP and high-end 11.00

07/25 01/26 07/26

premium mass customers. The multi-year product upgrade plan also remains on track Target price: 18.00 High: 22.20 Low: 12.90 Current: 13.20

and should further support premium share capture. The Venetian renovation is

Source: LSEG IBES, HSBC estimates

progressing as planned, with all 2,900 rooms and suites targeted to be fully refurbished

and back online by Chinese New Year 2028, alongside new premium-focused gaming

Charlene Liu*

salons and related amenities. In the interim, c.400 to 500 keys are expected to be taken Head of Internet and Gaming Research, Asia Pacific

out of inventory per quarter through 2027. Management emphasised that the ongoing TheLimited,HongkongSingaporeand BranchShanghai Banking Corporation

portfolio upgrades should not hinder Sands’ ability to compete in the non-premium charlene.r.liu@hsbc.com.sg

+65 6658 0615

segment should demand re-accelerate. Lastly, Sands highlighted a strong event pipeline

Jessie Lu*, CFA

in 2H26, with a busier calendar through August and September and NBA games Analyst, Internet and Gaming Research

scheduled for October, which should support incremental visitation. The Hongkong and Shanghai Banking Corporation Limited

jessie.x.lu@hsbc.com.hk