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Sands China(1928): Total net revenue for the fourth quarter of 2025 reached US$2.05 billion, a year-on-year increase of 16.4%. However, adjusted property EBITDA was US$608 million, a 6% year-on-year increase, but the profit margin declined by 2.7 percentage points to 29.6% due to increased operating costs and a higher proportion of VIP business, falling short of market expectations. Quarterly net revenue was US$213 million, down from US$237 million in the same period last year. The company's core objective remains absolute EBITDA growth, with capital expenditure projected to remain at US$400 million by 2026. With the Londoner Phase 2 project nearing full operation, the market anticipates a further increase in its market share. Despite risks such as competition from peers and regulatory scrutiny from mainland China, management remains optimistic about Macau's long-term potential to transform into a world-class tourism and leisure center, and stated that dividends will be adjusted in line with cash flow growth.
AI Spending Concerns and Tech Stock Valuation Reassessment
The S&P 500 dipped 0.13% yesterday, closing at 6,969 points. The hottest topic in the market right now is the pressure to realize profits from AI investments. While Microsoft's results beat expectations, its stock price plummeted 10% due to slowing cloud growth and massive AI spending, triggering strong market skepticism about the return on capital of tech giants. This reflects a shift in investor sentiment from vision-driven to rigorous performance testing. If tech leaders cannot prove that their high spending will generate corresponding profits, US stocks may face valuation reassessment risks. This sentiment will exacerbate sector rotation, and investors should be wary of short-term volatility in overvalued tech stocks.
Hong Kong Stock Connect recorded a net inflow of HK$4.37bn on Thursday, with the Tracker Fund of Hong Kong (2800) recording the largest net inflow at HK$2.bn, followed by Tencent Holdings (0700); China Mobile (0941) recorded the largest net outflow at HK$646mn, followed by Zijin Mining (2899).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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