SCHYY - Sands China: Short-Term Pain Long-Term Gain
Elevator Pitch
I maintain my "Neutral" rating on Hong Kong-listed Sands China Ltd. (SCHYY) (SCHYF) [1928:HK]. "Short-term pain" for Sands China in the form of temporary casino closures could potentially translate into "long-term gain" if the spread of the Wuhan coronavirus is contained as a result. However, Sands China's current valuations are not sufficiently attractive. Moreover, a further spread of the Wuhan coronavirus in Macau and other markets and a potential extension of the current suspension of gaming operations is the single biggest downside risk.
Sands China currently trades at 13.4 times consensus forward next