MGM CHINA

MGM China surged roughly 3% to HK$11.35 today, with morning session touching a high of HK$11.41 at 11:11 before moderating in the afternoon, supported by first-half earnings strength and constructive analyst sentiment. First-half Daily GGR climbed 5% year-over-year with market share steady at 15.9%, while Q4 net profit surged 40.33% to HK$1.346 billion, demonstrating recovered earnings momentum. CLSA reiterated its Outperform rating, highlighting the company's enhanced cost discipline, while Citi maintained its Buy rating citing business recovery post-World Cup. However, 2Q adjusted EBITDA declined 7.4% year-over-year, pointing to lingering quarterly volatility. Trading 34.66% below its 52-week high of HK$17.37, the stock has rebounded 16.41% from the June low of HK$9.75 and trades well above its 60-day moving average, having fallen 12.69% year-to-date.

MGM China declined modestly to HK$10.83 today after rallying to HK$11.00 in morning trading, with profit-taking constraining further upside momentum. Macau gaming sector revenue rose 9% week-over-week, providing concrete evidence of recovery that reinforces buy ratings from HSBC, CLSA, and UBS. The company has also recently scheduled a board meeting to review interim financial results and consider dividend distributions. Latest quarterly earnings show solid performance, with Q4 EPS of HK$0.352 up 39.74% year-over-year, net profit surging 40.33%, revenue advancing 19.5%, and net profit margin at 14.85%, all supported by a lean 8.1x P/E valuation. From a price perspective, the stock remains 37.65% below its 52-week high yet has recovered 11.08% from the 52-week low, suggesting it trades within a relative value zone.

MGM China rose 4.1% today, surging to 11.05 HKD in the morning session before retreating to 10.90 HKD at close, with an intraday peak of 11.10 HKD at 13:04. The gains were driven by multiple factors: the company's announcement that its board will review interim results and consider dividend distribution; Macau gaming revenue up 9% week-over-week with HSBC maintaining a Buy rating and forecasting month-over-month GGR improvement; Q4 earnings showing EPS up 39.74% year-over-year, net profit up 40.33%, and revenue up 19.5%; and the company's recent US$20 million acquisition of MGM Asia Pacific. From a valuation perspective, the stock trades at 37% discount to its 52-week high of 17.37 HKD and near its 52-week low of 9.75 HKD, with a PE of 8.16x. However, the long-term recovery trajectory of the Macau gaming market remains uncertain, and the magnitude of the dividend policy requires further observation.

MGM China closed slightly higher at 10.47 HKD today, up 0.38% from the previous close of 10.43 HKD, buoyed by signs of Macau gaming revenue recovery and strong Q4 earnings. HSBC's latest report shows that Macau GGR rose 9% week-on-week, with the bank expecting sequential monthly improvements ahead. The company's Q4 results were robust, with EPS of 0.352 HKD, up 39.74% YoY, net profit of HK$1.35 billion, up 40.33% YoY, revenue growth of 19.5% YoY, and a net margin of 14.85%. Multiple brokers including HSBC, CLSA and UBS maintain Buy ratings, reflecting confidence in the company's near-term outlook. Valuationally, the stock is down 39.72% from its 52-week high of 17.37 HKD, just 7.38% above its 52-week low of 9.75 HKD, with a PE of 7.84x, suggesting a relatively depressed valuation. However, investors should monitor the sustainability of Macau consumer demand and whether the company can sustain earnings momentum in coming quarters.

MGM China rose approximately 2.35% today, closing at HK$10.43, primarily supported by improving Macau gaming sentiment. HSBC's latest data shows Macau GGR growth of roughly 9% week-over-week with expectations for progressive monthly improvement, while the company's Q4 2025 earnings delivered strong results with net profit up 40.33% year-over-year, EPS up 39.74%, and operating income up 26.29%. Major brokers including HSBC, CLSA, and UBS maintain buy ratings on the stock. From a technical perspective, the stock has fallen 39.95% from its 52-week high of HK$17.37 and now trades near its 52-week low of HK$9.75 (only 6.97% above), positioning it near support levels, with today's close above both the 20-day (10.232) and 60-day (10.651) moving averages signaling technical stabilization. However, the stock remains down 19.77% year-to-date, and while it trades at an attractive P/E of 7.81, its P/B ratio of 12.20 remains relatively elevated.