Goldman Sachs: Lowering the target price of Aobo Holdings (00880) to HK$1.6 to maintain a “neutral” rating to focus on debt refinancing risks

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that Goldman Sachs released a research report stating that the target price of Aobo Holdings (00880) was lowered from HK$1.8 to HK$1.6, maintaining a “neutral” rating. The bank lowered the company's 2026-2028 EBITDA forecast by 10% to 12%, and indicated that the Group's high debt level and most loans will expire in the next 12 to 18 months, making investors increasingly concerned about the risk of debt refinancing.

Aobo Holdings' EBITDA for the third quarter of 2026 fell 10% quarterly to 705 million yuan, in line with the bank's and market expectations. Excluding the impact on VIP room win rates, the adjusted EBITDA was approximately $721 million, down 8% from quarter to quarter. Goldman Sachs said it adjusted its 2026-2028 EBITDA forecast considering the company's gaming revenue trends and lower operating expenses since this year. Although the Group has made steady progress in cost control, which helps to make up for weak gaming gross margin and market share trends, as well as ongoing competitive pressure, the risk of debt refinancing is still worth paying attention to.