UPDATE 3-Ho firm pushes back US$1 bln HK IPO-sources

(For an expanded IPO diary, please click <HK/IPOMENU>) (Adds details on regulatory query in first and second paragraphs)

By Tony Munroe and Kennix Chim

HONG KONG Jan 15 (Reuters) - Macau tycoon Stanley Ho's casino flagship, which had hoped to begin marketing a US$1 billion IPO on Tuesday, has pushed back the launch to address a regulator's query, people briefed on the matter said.

No further details were available on when Sociedade de Jogos de Macau Holdings (SJM) would begin its investor roadshow. The sources said the company had received a request from Hong Kong's Securities and Futures Commission for a procedural clarification.

The company, which plans to go public in a Hong Kong market that has fallen nearly 7 percent so far in 2008 while big U.S.-listed gaming operators have also been battered, has been targeting a Feb. 1 trading debut.

Macau has received billions of dollars in investment from U.S. casino operators and a flood of visitors since Ho lost his decades-old gaming monopoly in 2002. Last year, the former Portuguese-run enclave overtook the Las Vegas Strip as the world's largest gaming market.

A spokesman for SJM, which first announced its IPO plans in early 2006, declined to comment.

Deutsche Bank (DBKGn.DE), which is sponsoring the deal, also declined to comment.

"SJM's market share is shrinking due to increased competition, and it is not the only choice for gambling stocks," said Adam Tam, fund manager at Pacific Sun Investment Management.

Tam added that one of SJM's selling points was its potential for land acquisition from its parent, which could boost the firm's asset value amid Macau's surging economy.

Gaming giants led by U.S.-based Las Vegas Sands (LVS.N) and Wynn Resorts Ltd (WYNN.O), have built glitzy new casino properties in Macau, eating into Ho's market share, which stands at 42 percent, according to a Deutsche Bank research report.

The report predicted that SJM could maintain market share of at least 20 percent.

Deutsche Bank estimates that SJM's net profit last year fell by about 50 percent to HK$1.22 billion (US$156.4 million) from HK$2.4 billion in 2006.

It expects the company's price-to-earnings multiple at the time of its IPO to be about 16.4-19.4 times forecast 2008 earnings, a sharp discount to rival operators even after their recent share price slumps.

By comparison, Las Vegas Sands trades at 36.5 times forecast 2008 earnings, according to Reuters data. Wynn trades at 32 times and MGM Mirage (MGM.N), which recently opened a Macau casino in conjunction with Ho's daughter Pansy Ho, trades at 27 times 2008 earnings.

Melco PBL Entertainment (Macau) Ltd (MPEL.O), a Nasdaq-listed Macau joint venture between Ho son Lawrence Ho's Melco International Development (0200.HK) and Australian tycoon James Packer, trades at 142 times forecast 2008 earnings.

Stanley Ho and his sister Winnie Ho have been locked in a legal dispute over the shareholding structure of SJM's parent firm, the Stanley Ho-controlled Sociedade de Turismo e Diversoes de Macau (STDM), media have reported.

U.S. shares in big casino operators have been in sharp decline in recent months amid a worsening U.S. economy. Las Vegas Sands shares have fallen 45 percent from an all-time high in late October while Wynn is off 43 percent over the same period.

Melco PBL shares have fallen nearly 57 percent from their 2007 peak, which was reached on Jan. 19. (US$=HK$7.8) (Reporting by Tony Munroe and Kennix Chim; Editing by Paul Bolding)