Why is SJM Holdings stock falling today?

Shares of SJM Holdings experienced a significant decline of 2.8%, trading at HK$1.41 on Wednesday, following the release of disappointing interim results for the first half of 2026. The company announced a substantial revenue drop, amounting to HK$11.59 billion, which represented a 20.8% decline compared to the previous year. Additionally, SJM's net loss attributable to shareholders widened by 61.7%, reaching HK$295 million, with a basic loss per share reaching HK$0.041.

The primary reason behind the revenue decline was the complete closure of SJM's satellite casino network in December 2025. This closure, which had been a significant contributor to the prior-year performance, resulted in a sharp decrease in total net revenue. Furthermore, SJM's share of the overall Macau casino market contracted from 12.9% a year earlier to 9.8%.

The financial performance of SJM Holdings showcased several concerning factors. Gross gaming revenue witnessed a 18.5% reduction, falling to HK$12.08 billion. The company's share of the Macau casino market also experienced a notable decline, decreasing from 12.9% to 9.8%. Perhaps the most alarming figure was the adjusted property EBITDA at Grand Lisboa Palace, SJM's flagship resort on Cotai.

This metric plummeted from HK$82 million to a mere HK$22 million, driven by restructuring costs, increased customer reinvestment spending, and the broader inflationary trends affecting the market.

Despite the negative performance, SJM Holdings did not fare as poorly as other sectors in the Hong Kong market, where the Hang Seng index managed to advance by 1%.