Morgan Stanley issued a research report, cutting Sands China (01928)'s earnings before interest, taxes, depreciation and amortization (EBITDA) forecast by 2% from 2017 to 2018 to reflect its worse-than-expected fourth-quarter performance. Even though this year's Spring Festival i

Morgan Stanley issued a research report, cutting Sands China (01928) 's earnings before interest, taxes, depreciation and amortization (EBITDA) expectations by 2% from 2017 to 2018 to reflect its worse-than-expected fourth-quarter performance. Even though this year's Spring Festival is the peak season, the company's market share continues to be eroded. Damo Materials' dividend per share for fiscal year 2017 can be maintained at 1.99 yuan, equivalent to a dividend rate of 5.7%, and there is little chance of increasing the dividend. The bank maintained Sands' "in-line" rating and lowered its target price from 36 yuan to 35 yuan.

The bank pointed out that it lowered its earnings per share forecast for 2017 to 2018 by 6% to 7%, mainly because amortization and depreciation in the last quarter were 6% higher than expected. It also pointed to the company's overall gambling revenue, VIP and mass market visitors. Gambling revenue increased by 8%, 13% and 6% respectively, which was similar to the industry growth of 10%, 16% and 5%. However, excluding the Parisian data, it fell by 10%, 13% and 8%, which was in line with other gambling companies. The numbers were similar when the new location opened.