Citigroup has issued a research note revising its profit forecasts for SANDS CHINA LTD (HKEX: 01928) downwards by 2% to 10% for the fiscal years 2026 to 2028. Consequently, the firm's price target has been slightly adjusted from HK$19 to HK$18.5, while its 'Buy' rating remains unchanged.

The company's management attributed the disappointing property EBITDA for Q2 2026—which fell 24% year-on-year to US$430 million, roughly 15% below both the bank's and market expectations—to extremely low win rates in the VIP segment and the impact of global soccer events. However, they emphasized that the second-quarter performance does not reflect the company's true earnings capacity.

Citigroup expressed encouragement regarding management's continued focus on capturing a larger share of the EBITDA market. The bank anticipates that a robust schedule of events and concerts in the second half of the year will help drive a business recovery. Furthermore, operating expenses are expected to stabilize during this period, which should contribute to steady EBITDA margins.

Management has outlined plans to complete the renovation and recommission all 2,900 guest rooms and suites at The Venetian Macao hotel before the Lunar New Year in 2028. They anticipate minimal disruption to the overall property portfolio throughout this refurbishment process.