[Photo: Renato Marques]
SJM Holdings Ltd’s “new marketing team” and property investments could deliver upside to 2026 performance expectations, even as the casino operator lags behind Macau’s broader gaming recovery, according to CBRE Capital Advisors Inc.
Analysts John DeCree and Max Marsh highlighted these factors in a Friday research memo, issued a day after SJM reported a 15% year-on-year drop in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for fiscal year 2025.
“SJM has trailed overall GGR growth in Macau throughout its transition year in FY25, and we expect the company will need at least the first half of FY26 to round the corner,” the analysts noted.
CBRE highlighted that while satellite casino closures – now complete – inflicted the biggest drag, other operational challenges persist.
Elevated operating expenses related to transitioning satellites and concession obligations weighed heavily, as did an unfavorable VIP hold comparison.
Moreover, a highly competitive environment drove up reinvestment rates, further squeezing margins.
As a result, the firm downgraded SJM shares from “Buy” to “Hold,” citing a slower recovery trajectory than that of Macau peers. NS
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