Consumer Discretionary
Despite the Marina Bay Sands in Singapore putting up all-time high EBITDA and a full recovery in Macau visitation, Sands stock has traded poorly this year. The reason has been concern about the Chinese economy. Sands China, the company that owns just under 30% of Las Vegas Sands’ Macau assets has fallen more than 40% since Feb. With Aug visitation in Macau above 2019 levels, strong performance in the high-margin mass and premium mass business, and just a few months remaining to finish a big renovation project, LVS just bought back $103m of Sands China stock bringing its stake to 72%. With over $1bn in capital returned to shareholders this year, DKI believes management is displaying confidence based on excellent fundamental results.
Edition: 195
- 20 September, 2024