Goldman Sachs: Sands China target price raised to HK$21.6, expecting future dividends to have upside potential.

Goldman Sachs released a research report stating that Sands China has declared a mid-term dividend of HK$0.25 per share, which is the same as the dividend at the end of last year, but the dividend payout ratio has increased to 63%. Although compared to Galaxy Entertainment's increased dividend payout, Sands' dividend may disappoint some investors, the bank believes that this move is in line with expectations, as the recent fluctuations in the group's casino revenue market share reflect significant pressure on the business, requiring increased promotional activities to combat competition. Additionally, Sands China's management had previously stated that the short-term goal is to increase casino volume, allowing EBITDA to approach the level of $2.6 to $2.7 billion. The bank believes that it may take until 2026 to achieve this goal. Based on business recovery and market share recovery progress, the bank forecasts that the dividend will remain at HK$0.25 by the end of 2025, totaling HK$0.5 for the year; assuming dividends gradually increase to HK$0.8 in 2026 and reach HK$1 in 2027. Goldman Sachs raises Sands China's target price slightly from HK$21.5 to HK$21.6, maintaining a "buy" rating.