UPDATE 1-SJM cautiously optimistic on outlook, Q2 net quadruples

* Q2 net at HK$810 mln vs consensus estimate of HK$893 mln

* Says cautiously optimistic for H2

* Shares up 4.3 pct before results (Adds details)

By Sui-Lee Wee

HONG KONG, Aug 30 (Reuters) - SJM Holdings (0880.HK), Macau's largest casino operator controlled by gambling tycoon Stanley Ho, said it is cautiously optimistic about the second half of 2010, after posting a quadrupling in its second-quarter net profit.

For the first half of the year, gambling revenue in Macau, the world's largest and fastest-growing gambling market, rose 67 percent to 85.85 billion patacas ($10.7 billion) from the same period a year ago.

But analysts say gambling revenue growth in the former Portuguese enclave is likely to slow in the second half, as wealthy Chinese, who make up the bulk of Macau's gamblers, get squeezed by Beijing's monetary tightening policies.

"The group's performance in the second half of the year will remain susceptible to the overall economic performance of the surrounding region and the level of visitation to Macau, as well as to the competitive situation among the casino operators in Macau," SJM said in a statement to the Hong Kong stock exchange.

"The group is cautiously optimistic regarding its performance for the rest of the year."

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Gaming revenue graphic: link.reuters.com/hux68j

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SJM is many analysts' top pick amongst Macau's casino operators including Sands China (1928.HK) and Wynn Macau (1128.HK), as it has a strong operating performance and a robust balance sheet, boosting its defensive profile.

The casino firm, which holds more than 30 percent of the Macau market in terms of gaming revenue, operates 18 casinos -- four self-owned and 14 franchised.

FORMER MONOPOLY

SJM's net profit for April-June totalled HK$810 million ($104 million) from HK$200 million in the same period a year ago, according to Reuters calculations from the firm's previously reported figures.

The profit lagged the average forecast of HK$893 million by three analysts.

SJM had a monopoly on gambling in Macau until 2002 when the territory granted new casino concessions to more operators including Wynn Resorts (WYNN.O) and Las Vegas Sands (LVS.N).

Shares in SJM jumped 4.2 percent to HK$7.49 ahead of the results on Monday. The stock has gained 67.8 percent so far this year, compared with Sands' Macau unit, Sands China (1928.HK), which has advanced 28.1 percent, and Wynn's Macau unit, Wynn Macau (1128.HK), which has risen 40.3 percent. (Editing by Valerie Lee) ((suilee.wee@thomsonreuters.com; +852 2843 6314; Reuters Messaging: suilee.wee.reuters.com@reuters.net))