"Big Banks" Citigroup: Sands China’s new customer rebate strategy is effective, driving EBITDA growth with only a slight decline in profit margins

AASTOCKS
2025.10.23 02:40

Citigroup's report indicates that Sands China (01928.HK) has kicked off the third quarter of 2025's earnings season with solid performance. Property EBITDA reached USD 601 million, up 3% year-on-year and 6% quarter-on-quarter, marking the first time it has surpassed the USD 600 million level since the first quarter of 2024. If it weren't for the super typhoon at the end of September causing a temporary operational interruption, its EBITDA could have easily exceeded USD 600 million. The company's new customer rebate strategy has begun to show results, with an estimated market share increase of 1 percentage point from the previous quarter to 23.4%. Even more encouraging is that the improvement in EBITDA was accompanied by only a slight decline in profit margins.

Citigroup stated that Sands China remains one of its preferred stocks, expecting its EBITDA recovery to continue into the fourth quarter of this year and next year. The rating is "Buy," with a target price of HKD 25.5

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