Citigroup: Slightly lowers target price of Sands China (01928) to HK$18.5, maintains "buy" rating.

Citibank released a research report stating that it has lowered its profit forecast for Sands China (01928) for the fiscal years 2026 to 2028 by 2% to 10%. The target price has been adjusted from HK$19 to HK$18.5, and the "buy" rating is maintained. The management of Sands China attributed the disappointing property EBITDA for the second quarter of 2026 (down 24% year-on-year to US$430 million, about 15% lower than the bank and market expectations) to the very low win rate in the VIP room and the impact of global football events. However, they emphasized that the performance in the second quarter does not represent the company's true profit capability. The bank is encouraged by the management's continued focus on gaining market share in EBITDA and expects strong activities and concert lineups in the second half of the year to help drive business recovery. Operating expenses are expected to stabilize in the second half of the year, which will be beneficial for stabilizing the EBITDA profit margin. The management plans to complete the renovation of all 2,900 rooms and suites at The Venetian Macao hotel before the Chinese New Year in 2028, and expects minimal disruption to the overall property portfolio during this process.