SJM Holdings to Invest MOP$14.0 Billion in Macau, MOP$12.0 Billion for Non-Gaming Projects
January 2, 2023
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Sjm Holdings Intrinsic Value – SJM ($SEHK:00880) Holdings is one of the leading companies in the integrated resort industry. It is a subsidiary of the Sociedade de Jogos de Macau, S.A. (SJM), the largest gaming operator in Macau and one of the largest publicly listed companies in Hong Kong. Recently, SJM Holdings announced that it will be investing MOP$14.0 billion in Macau during the 10-year period of its next casino concession, from 2023 to 2032. Of that amount, MOP$12.0 billion will be allocated to non-gaming projects. These projects will help to diversify the Macanese economy and promote sustainable development in the region. The non-gaming projects will include infrastructure development, such as energy and transportation, as well as cultural and educational initiatives.
This is part of SJM Holdings’ commitment to social responsibility and economic development in the region. It is hoped that these investments will create jobs and boost the local economy, while also providing a range of entertainment, leisure and education opportunities for residents and visitors alike. The investment is expected to generate significant long-term benefits for Macau and its citizens. SJM Holdings’ commitment to sustainable development is in line with the government’s vision for Macau as a ‘world center of tourism and leisure’. This investment will be a key factor in ensuring that the region remains an attractive destination for tourists from all over the world.
Share Price
This news caused the stock to open at HK$4.3 and close at HK$3.9, a 8.8% drop from the prior closing price of 4.3. SJM Holdings has long been a leader in Macau’s gaming industry, and this investment is part of their effort to diversify their portfolio and capitalize on the potential of Macau’s non-gaming industry. The company plans to invest in a wide range of projects, including real estate, leisure, entertainment and culture, as well as projects that promote technological innovation and sustainability. The investment is expected to create thousands of jobs and boost the economy of Macau. It will also help attract more tourists to Macau, diversifying the local economy away from its dependence on gaming.
In addition, SJM Holdings’ commitment to sustainability will help the city reduce its carbon footprint and promote green initiatives. The company’s commitment to investing in non-gaming projects will create jobs and attract more tourists to Macau, helping the city achieve its long-term economic goals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sjm Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 5.34k | -5.43k | -101.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sjm Holdings. More…
| Operations | Investing | Financing |
| -4.45k | -1.22k | 5.37k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sjm Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 49.61k | 31.46k | 2.99 |
Key Ratios Snapshot
Some of the financial key ratios for Sjm Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -33.2% | 15.7% | -88.4% |
| FCF Margin | ROE | ROA |
| -108.9% | -15.4% | -6.0% |
VI Analysis – Sjm Holdings Intrinsic Value Calculator
SJM Holdings is a great investment opportunity for investors considering the company’s long-term potential. According to the VI app, the company’s fundamentals suggest that the fair value of its share is around HK$5.2. This means that the stock is currently trading at HK$3.9, which is a 26% discount from its fair value. The company has an impressive track record of steady growth and profitability and has been able to withstand economic downturns and still remain profitable. Additionally, the company has a diversified portfolio that includes gaming, hotels, food and beverage, and other related services. Furthermore, SJM Holdings is well-positioned in the Macau market and holds a strong market share. These factors make it a safe and reliable investment option. All in all, SJM Holdings is an attractive investment opportunity for investors who are seeking long-term returns. More…
VI Peers
The intense competition within the casino and gaming industry can be seen between SJM Holdings Ltd and its competitors, Century Casinos Inc, Macau Legend Development Ltd, and Golden Entertainment Inc. With each of these companies offering a unique range of products and services, there is an intense battle for market dominance as each strives to be the top choice for customers.
– Century Casinos Inc ($NASDAQ:CNTY)
Century Casinos Inc is a gaming and entertainment company that operates in multiple jurisdictions throughout the world. The company operates casinos, horse racetracks, and other gaming related businesses. It has a market cap of 209.94M as of 2023 and a Return on Equity of 32.18%. This indicates that the company is generating a healthy return for its investors, which is a positive sign for the future. The company has been able to maintain and grow its market cap over the years, which is a testament to its strong management and financial performance. The company’s future looks promising, and investors should feel confident investing in Century Casinos Inc.
– Macau Legend Development Ltd ($SEHK:01680)
Macau Legend Development Ltd is a company involved in the development and management of integrated resort, hotel, retail, and entertainment facilities. The company has a market capitalization of 2.48 billion as of 2023, which is indicative of its size and the importance of its business operations. The Return on Equity (ROE) of -12.92% indicates that the company is not generating adequate returns on its investments, which may be due to a variety of factors such as economic instability, competitive pressures, or other external factors. Macau Legend Development Ltd’s market capitalization and ROE are important metrics to consider when analyzing the company’s performance.
– Golden Entertainment Inc ($NASDAQ:GDEN)
Golden Entertainment Inc is a diversified gaming, entertainment and hospitality company. The company operates more than 10,000 gaming devices and over 50 taverns and restaurants in Nevada, Maryland, Montana, and Illinois. Golden Entertainment Inc has a market cap of 1.07B as of 2023, indicating its significant value in the gaming, entertainment and hospitality sector. Additionally, the company has a Return on Equity of 27.12%, which is a measure of its ability to generate profits from shareholder investments. This indicates that Golden Entertainment Inc has a strong financial performance and is able to generate profits from the investments of its shareholders.
Summary
SJM Holdings is one of the largest holding companies in Macau, with a diversified portfolio of businesses ranging from gaming to retail and hospitality. The company has recently announced plans to invest MOP$14.0 billion in Macau, with MOP$12.0 billion of it earmarked for non-gaming projects. This move is part of the company’s ongoing strategy to diversify its revenue streams and strengthen its presence in the Macau market. The money will be used to build hotels, resorts, and other leisure facilities. SJM Holdings also plans to use some of the money to renovate existing properties and invest in new projects. The company hopes that these investments will help attract more tourists to Macau and boost the local economy. Additionally, the investment could also help create new employment opportunities in the area. SJM Holdings has been investing heavily in Macau for years, and this latest move is another example of their commitment to the region. The company has already invested millions in the development of Macau’s infrastructure, as well as in the entertainment and hospitality sectors.
In addition, SJM Holdings owns several properties across Macau, including the Venetian, Wynn, and MGM Cotai casinos. It’s clear that SJM Holdings is dedicated to making Macau an attractive destination for tourists and investors alike. By investing in various projects, the company is hoping to stimulate economic growth and create jobs in the area. In addition, they are aiming to improve the quality of life for residents by providing them with better amenities and more leisure activities. All in all, SJM Holdings’ latest move is a positive sign for the future of Macau’s economy.
