Sands China is highly likely to announce the resumption of dividend payments following its upcoming board meeting on Friday, reflective of positive market trends both in Macau and across the broader Asian gaming segment, according to investment bank Morgan Stanley.
It has been five years now since Sands China last declared a dividend in early 2020, but with fellow Macau concessionaires Galaxy, MGM China and Wynn having declared dividends over the past 12 months, Sands is seen as the obvious contender to follow suit.
In a note, Morgan Stanley analysts said that although Sands China did not deliver mass market share gain in 4Q24 despite the recent opening of Londoner casino and Venetian Arena, share should increase from 1Q25 as new suites open up – including more than 2,000 Londoner Grand rooms and suites.
“We also believe that Sands could resume its first dividend in five years on 21 February 2025,” they wrote.
“We expect DPS (dividend per share) to grow back to HK$2 per share eventually (like pre-COVID), resulting in more than 12% yield.”
According to the analysts, the resumption of dividends would represent another piece of good news for the sector after both MGM China and Wynn Macau reported better-than-expected 4Q24 EBITDA results, with Melco Resorts & Entertainment also expected to report 4% quarter-on-quarter growth.
Likewise, the investment bank is bullish on Genting Singapore – operator of Resorts World Sentosa – which is scheduled to report its 4Q24 results on Thursday.
“We expect Genting Singapore to deliver Singapore EBITDA growth of around 4% quarter-on-quarter to SG$198 million (US$147 million),” Morgan Stanley said, noting that this would represent 17% growth on a hold-adjusted basis.
“We see upside to our expectations for VIP luck but partly offset by pre-opening expenses. Focus will be on dividends, new openings in 2025/26, and outlook of spending by Chinese gamblers.”
