SCHYY - Sands China: Valuation Premium Justified By Market Leadership In Macau And Limited Exposure To VIP Segment
Elevator Pitch
I like Hong Kong-listed Sands China Ltd. (SCHYY) (SCHYF) [1928:HK] for its market leadership in both gaming and non-gaming properties and its limited exposure to the more economically-sensitive VIP segment. Also, Sands China has a $2.2 billion reinvestment program in place to enhance its properties and further reinforce its leading position in Macau.
Sands China has been the best-performing Macau gaming stock this year, with a year-to-date share price appreciation of +13.7%, excluding dividends. Sands China trades at 12.9 times consensus forward FY2020 EV/EBITDA representing a discount to its