SEHK:1928

Stock Analysis Report

Executive Summary

Sands China Ltd., an investment holding company, develops, owns, and operates integrated resorts and casinos in Macao.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sands China's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1928's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.5%

1928

0.2%

HK Hospitality

4.0%

HK Market


1 Year Return

-32.4%

1928

-24.7%

HK Hospitality

-20.3%

HK Market

Return vs Industry: 1928 underperformed the Hong Kong Hospitality industry which returned -24.7% over the past year.

Return vs Market: 1928 underperformed the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

1928IndustryMarket
7 Day5.5%0.2%4.0%
30 Day-22.8%-16.3%-9.6%
90 Day-32.8%-25.6%-16.0%
1 Year-28.7%-32.4%-22.4%-24.7%-17.4%-20.3%
3 Year-9.4%-22.2%-16.3%-23.8%-3.2%-13.0%
5 Year15.1%-13.8%-7.0%-21.6%-7.4%-22.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sands China undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1928 (HK$28) is trading below our estimate of fair value (HK$111.3)

Significantly Below Fair Value: 1928 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1928 is poor value based on its PE Ratio (14.4x) compared to the Hospitality industry average (11.5x).

PE vs Market: 1928 is poor value based on its PE Ratio (14.4x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 1928 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 1928 is overvalued based on its PB Ratio (6.6x) compared to the HK Hospitality industry average (0.7x).


Next Steps

Future Growth

How is Sands China forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1928's forecast earnings growth (8.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1928's earnings (8.1% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Earnings: 1928's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1928's revenue (6.7% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 1928's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1928's Return on Equity is forecast to be very high in 3 years time (67.3%).


Next Steps

Past Performance

How has Sands China performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1928 has high quality earnings.

Growing Profit Margin: 1928's current net profit margins (23.1%) are higher than last year (21.6%).


Past Earnings Growth Analysis

Earnings Trend: 1928's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: 1928's earnings growth over the past year (8.4%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: 1928 earnings growth over the past year (8.4%) exceeded the Hospitality industry -3.4%.


Return on Equity

High ROE: Whilst 1928's Return on Equity (45.73%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Sands China's financial position?


Financial Position Analysis

Short Term Liabilities: 1928's short term assets ($3.0B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: 1928's short term assets ($3.0B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: 1928's debt to equity ratio (122.8%) is considered high.

Reducing Debt: 1928's debt to equity ratio has increased from 48.5% to 122.8% over the past 5 years.

Debt Coverage: 1928's debt is well covered by operating cash flow (51.5%).

Interest Coverage: 1928's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: 1928 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1928's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Sands China's current dividend yield, its reliability and sustainability?

7.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1928's dividend (7.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 1928's dividend (7.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


Stability and Growth of Payments

Stable Dividend: 1928 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1928's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.5%), 1928's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1928's dividends in 3 years are forecast to be covered by earnings (77.8% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Sheldon Adelson (85yo)

5s

Tenure

Mr. Sheldon Gary Adelson has been the Chief Executive Officer of Sands China Ltd., since March 6, 2015. Mr. Adelson has been the Chief Executive Officer of Las Vegas Sands Corp. since August 2004. He is th ...


Leadership Team

NamePositionTenureCompensationOwnership
Sheldon Adelson
Chairman & CEO5yrsno datano data
Ying Wai Wong
President & Executive Director4.17yrsUS$4.62mno data
Minqi Sun
CFO & Senior VP2.92yrsno datano data
Kwan Chum
Chief Operating Officerno datano datano data
Dylan Williams
General Counsel & Company Secretaryno datano datano data
David Sylvester
Executive Vice President of Global Retailno datano datano data

4.3yrs

Average Tenure

50yo

Average Age

Experienced Management: 1928's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sheldon Adelson
Chairman & CEO5yrsno datano data
Ying Wai Wong
President & Executive Director4.17yrsUS$4.62mno data
Yun Chiang
Independent Non-Executive Director10.42yrsUS$150.00kno data
Steven Strasser
Independent Non Executive Director6.83yrsUS$180.00kno data
Robert Goldstein
Non-Executive Director5yrsno datano data
Victor Hoog Antink
Independent Non-Executive Director7.25yrsUS$180.00kno data
Charles Forman
Non-Executive Director5.83yrsUS$150.00kno data
Kenneth Patrick Chung
Independent Non-Executive Director3.67yrsUS$150.00kno data

6.3yrs

Average Tenure

66yo

Average Age

Experienced Board: 1928's board of directors are considered experienced (6.3 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Sands China Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sands China Ltd.
  • Ticker: 1928
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$238.215b
  • Shares outstanding: 8.09b
  • Website: https://www.sandschinaltd.com

Number of Employees


Location

  • Sands China Ltd.
  • The Venetian Macao-Resort-Hotel
  • Executive Offices, L2
  • Taipa
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1928SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
599ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
SCHY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2009
1928SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
1928SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
SCHY.YOTCPK (Pink Sheets LLC)UNSPONSORE ADRUSUSDMay 2010

Biography

Sands China Ltd., an investment holding company, develops, owns, and operates integrated resorts and casinos in Macao. It owns and operates The Venetian Macao-Resort-Hotel, the Sands Cotai Central resort, The Parisian Macao resort, The Plaza Macao, and Sands Macao casino; the CotaiExpo, an convention and exhibition hall; and the Cotai Arena, an entertainment venue. As of December 31, 2018, the company had 12,341 hotel rooms and suites, 151 restaurants, 2.1 million square feet of retail malls, 1.7 million square feet of MICE space, 4 permanent theatres, a 15,000-seat arena, and casinos. It also offers ferry transportation and leasing services, and pontoon leasing; security services; human resources administration services; financing; mall management services; travel and tourism agency services; and procurement, marketing, and administrative services, as well as outsourcing services, including information technology, accounting, hotel reservation, and marketing. The company was incorporated in 2009 and is headquartered in Taipa, Macau. Sands China Ltd. operates as a subsidiary of Venetian Venture Development Intermediate II 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:18
End of Day Share Price2020/03/30 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.