Citibank: Maintaining a “buy” rating for MGM China (02282) and business resumed after the World Cup

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that Citi released a research report stating that it maintains a “buy” rating for MGM China (02282), and the target price remains unchanged at HK$13.7, and believes that business will gradually recover after the World Cup. It pointed out that thanks to strict management control of operating expenses, MGM China's real estate EBITDA profit margin for the second quarter of 2026 remained at 27% despite a temporary decline in business volume during the World Cup. During the difficult quarter, the market share of gaming revenue increased by about 1 percentage point from quarter to quarter to 16.4%.

Management observed that the gaming business volume began to recover as early as the second week of July (that is, when there were only a few events left in the World Cup). In the first week after the tournament ended, the number of daily visitors and adjusted gaming revenue of the two properties had already exceeded the level of the first quarter of 2026. Based on the above performance, Citi assumes that the dividend ratio remains unchanged at 50%, and the stock expects a dividend rate of around 5% in 2026.