JP Morgan labels SJM Holdings liquidity “worrying” on COVID-19, satellite concerns

April 25, 2022 Macau Earnings & Filings Industry Updates

JP Morgan analysts have labelled the liquidity of Macau casino concessionaire SJM Holdings as “worrying” amid concerns over its ability to refinance while the COVID-19 pandemic drags on.

In a Friday note outlining potential stock opportunities for investors, the investment bank suggests that liquidity is not of any immediate concern to five of Macau’s six casino licensees, with the exception being SJM.

While most operators have ample liquidity to withstand another 18 months to four years “even at current levels of demand run-rates under near-shutdown of border,” analysts DS Kim, Amanda Cheng and Livy Lyu write that this does not apply to Galaxy Entertainment Group – which has cash reserves to last for “30+ years” – and SJM with “only about half a year.”