DB:3MG

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Executive Summary

SJM Holdings Limited, an investment holding company, develops and operates casinos and related facilities in Macau, Hong Kong, and internationally.


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has SJM Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3MG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

3MG

-2.4%

DE Hospitality

-0.6%

DE Market


1 Year Return

-10.6%

3MG

-35.6%

DE Hospitality

3.0%

DE Market

Return vs Industry: 3MG exceeded the German Hospitality industry which returned -34.9% over the past year.

Return vs Market: 3MG underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

3MGIndustryMarket
7 Day-6.1%-2.4%-0.6%
30 Day-14.7%-18.4%-0.1%
90 Day7.5%2.7%16.4%
1 Year-7.5%-10.6%-32.8%-35.6%5.2%3.0%
3 Year18.3%8.0%-50.4%-57.2%1.0%-6.9%
5 Year5.6%-10.9%-50.4%-60.9%8.0%-6.4%

Price Volatility Vs. Market

How volatile is SJM Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SJM Holdings undervalued compared to its fair value and its price relative to the market?

14.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3MG (€0.93) is trading above our estimate of fair value (€0.76)

Significantly Below Fair Value: 3MG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3MG is good value based on its PE Ratio (14.9x) compared to the Hospitality industry average (20.5x).

PE vs Market: 3MG is good value based on its PE Ratio (14.9x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 3MG is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 3MG is good value based on its PB Ratio (1.7x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is SJM Holdings forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3MG's forecast earnings growth (11.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 3MG's earnings (11.4% per year) are forecast to grow slower than the German market (22.5% per year).

High Growth Earnings: 3MG's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3MG's revenue (14.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 3MG's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3MG's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has SJM Holdings performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3MG has high quality earnings.

Growing Profit Margin: 3MG's current net profit margins (9.5%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 3MG's earnings have declined by -11.8% per year over the past 5 years.

Accelerating Growth: 3MG's earnings growth over the past year (12.5%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: 3MG earnings growth over the past year (12.5%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: 3MG's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is SJM Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3MG's short term assets (HK$16.9B) exceed its short term liabilities (HK$12.6B).

Long Term Liabilities: 3MG's short term assets (HK$16.9B) exceed its long term liabilities (HK$15.8B).


Debt to Equity History and Analysis

Debt Level: 3MG's debt to equity ratio (53%) is considered high.

Reducing Debt: 3MG's debt to equity ratio has increased from 5.8% to 53% over the past 5 years.

Debt Coverage: 3MG's debt is well covered by operating cash flow (28.6%).

Interest Coverage: 3MG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is SJM Holdings's current dividend yield, its reliability and sustainability?

3.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3MG's dividend (3.55%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: 3MG's dividend (3.55%) is low compared to the top 25% of dividend payers in the German market (3.84%).


Stability and Growth of Payments

Stable Dividend: 3MG's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3MG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), 3MG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3MG's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average board tenure


CEO

Ambrose So (69yo)

no data

Tenure

HK$20,700,000

Compensation

Dr. Shu Fai So, also known as Ambrose, has been the Chief Executive Officer of SJM Holdings Limited since 2002. Dr. So is responsible for execution of the SJM's strategy and the overall management of the S ...


Board Members

NamePositionTenureCompensationOwnership
On Kei Leong
Executive Co-Chairman2.08yrsHK$18.20m8.08% HK$442.4m
Tsun Ting Fok
Executive Co-Chairman2.08yrsHK$5.30m0.053% HK$2.9m
Chiu Fung Ho
Executive Chairman2.08yrsHK$16.30m0.026% HK$1.4m
Shu Fai So
Executive Vice Chairman & CEOno dataHK$20.70m2.71% HK$148.1m
Hong Kuen Shum
Executive Director13.5yrsHK$3.70m0.11% HK$5.8m
Un Chan Chan
Executive Director2.08yrsHK$6.10m0.036% HK$2.0m
Tak Hay Chau
Independent Non-Executive Director13.5yrsHK$1.20m0.0088% HK$482.9k
Hung Sun Ho
Chairman Emeritus2.08yrsno datano data
Hau Yin Tse
Independent Non-Executive Director13.5yrsHK$4.40m0.0088% HK$482.9k
Chi Sing Ng
Non-Executive Director14.5yrsHK$13.80m2.09% HK$114.4m

2.1yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 3MG's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SJM Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SJM Holdings Limited
  • Ticker: 3MG
  • Exchange: DB
  • Founded: 2006
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$47.946b
  • Listing Market Cap: HK$5.475b
  • Shares outstanding: 5.67b
  • Website: https://www.sjmholdings.com

Number of Employees


Location

  • SJM Holdings Limited
  • China Merchants Tower
  • 18th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
880SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2008
3MGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2008
SJMH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2008
880SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2008
880SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2008
SJMH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2014

Biography

SJM Holdings Limited, an investment holding company, develops and operates casinos and related facilities in Macau, Hong Kong, and internationally. It operates through Gaming Operations; and Hotel, Catering and Retail Operations segments. The Gaming Operations segment engages in the VIP gaming, mass market table gaming, slot machine, and other gaming operations, as well as operates satellite casinos. As of December 31, 2019, it operated 20 casinos comprising approximately 1,700 gaming tables and 2,400 slot machines. The Hotel, Catering and Retail Operations segment operates a hotel; and offers catering, retail, and related services. SJM Holdings Limited also provides marketing and promotion, property development, casino operations management, dredging, gaming promotion, human resources and project management, food and beverage, and hospitality services, as well as property and securities holding services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:20
End of Day Share Price2020/07/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.