Citigroup Reaffirms 'Buy' on MGM CHINA (02282) as Q1 Property EBITDA Exceeds Forecasts

Stock News04-30 14:50

Citigroup has issued a research report maintaining a 'Buy' rating on MGM CHINA (02282) with an unchanged target price of HK$17.3. The report anticipates that the company's new gaming and non-gaming facilities will help defend its market share in fiscal year 2026. MGM CHINA's first-quarter property EBITDA reached 2.458 billion yuan, representing a 4% year-on-year increase and surpassing the bank's and market expectations by 5% to 6%. This outperformance was primarily attributed to effective management control over operating expenses. Despite the VIP win rate at MGM Macau being significantly below the normal level at only 0.6%, the property EBITDA margin for the quarter remained stable at 28%. Management emphasized that the current scale of operating expenses aligns with growth conditions, indicating that the margin level is sustainable. MGM Macau plans to renovate 100 suites. Management expects corporate expenses for 2026, excluding share-based compensation, to be approximately $45 million to $50 million, which is lower than previous guidance.

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