Macquarie: Slightly lowers target price of MGM China (02282) to 22.1 Hong Kong dollars, second quarter performance in line with expectations.

Macquarie released a research report stating that it has raised the adjusted EBITDA forecasts for each year from 2025 to 2027 for MGM China (02282) by 2.2%, decreased by 0.5%, and increased by 0.4% respectively. The target price of the company has been slightly lowered from 22.2 Hong Kong dollars to 22.1 Hong Kong dollars, with a rating of "outperform". The report mentioned that MGM China's second-quarter gaming revenue increased by 12% year-on-year and quarter-on-quarter, exceeding the bank's expectations by 2%; total revenue increased by 9% year-on-year and 8% quarter-on-quarter, in line with the bank's expectations. The adjusted EBITDA reached a record high of 2.51 billion Hong Kong dollars, which was 3% higher than the bank's expectations. In addition, the company's market share increased by 0.6 percentage points year-on-year to 16.6%, the highest among six operators, and the management is confident in maintaining its market share at a high double-digit level.