MGM China Holdings (2282) AI Stock Analysis

• Market Cap: HK$59.13B
• Dividend Yield: 1.61%
• Average Volume (3M): 9.39M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.77
• Revenue Growth: 26.22%
• EPS Growth: 74.49%
• Country: HK
• Employees: 13,327
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.33
• Shares Outstanding: 3,800,000,000
• 10 Day Avg. Volume: 13,218,461
• 30 Day Avg. Volume: 9,385,670
• PEG Ratio: -0.17
• Price to Book (P/B): -8.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$15.46
• Price Target Upside: -0.63% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: HK$15.00 ▼(-3.60%Downside)

MGM China Holdings is on a positive trajectory with improved financial performance and strong market momentum. However, the overbought technical indicators suggest caution, and high leverage poses a risk to sustained growth. Valuation is reasonable, providing some reassurance to investors.

MGM China Holdings Business Overview & Revenue Model

Company Description

MGM China Holdings Limited, a subsidiary of MGM Resorts International, operates as a leading hospitality and entertainment company in Macau. It is primarily engaged in the development and operation of casino gaming and related resort facilities. The company owns and manages the MGM Macau resort and the MGM Cotai resort, which offer luxurious accommodations, diverse dining options, and a variety of entertainment experiences alongside extensive gaming facilities.

How the Company Makes Money

MGM China Holdings primarily generates revenue through its casino gaming operations, which include table games and slot machines. The company also earns income from its hotel accommodations, food and beverage services, and entertainment offerings within its integrated resorts. A significant portion of its revenue is driven by its VIP gaming segment, which caters to high-stakes gamblers, as well as its mass market gaming segment. Additionally, MGM China benefits from its strategic location in Macau, a major global gaming hub, and its association with MGM Resorts International, which enhances its brand recognition and appeal among international tourists and high-net-worth individuals.

MGM China Holdings Financial Statement Overview

Summary

MGM China Holdings shows a strong recovery, with improved profitability and revenue growth as reflected in the income statement. The balance sheet is improving but remains highly leveraged, and the cash flow shows strong generation capabilities despite some operational management concerns.

Income Statement

MGM China Holdings has shown a strong recovery in its income statement metrics. The gross profit margin improved significantly in 2024 compared to previous years, indicating efficient cost management. Net profit margin has also increased, reflecting higher profitability. The revenue growth rate from 2023 to 2024 is robust, highlighting effective business strategies and market recovery. Despite past years of negative EBIT margins, 2024 shows positive EBIT and EBITDA margins, suggesting an operational turnaround.

Balance Sheet

The balance sheet reveals a mixed picture. While the debt-to-equity ratio remains high due to significant debt levels, the return to positive stockholders' equity in 2024 is a positive indicator of financial stability. The equity ratio is low, indicating reliance on debt financing, but the company's ability to increase equity signals potential for improving financial health. Overall, the company shows signs of strengthening its balance sheet, but high leverage remains a risk factor.

Cash Flow

Cash flow analysis shows a positive trend with a significant free cash flow in 2024, marking a strong recovery from previous years. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. Free cash flow to net income ratio is also strong, demonstrating the company's ability to convert profits into cash. However, the decline in operating cash flow from 2023 to 2024 suggests the need for caution in operational cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.39B	24.68B	5.27B	9.41B	5.10B
Gross Profit	11.87B	19.67B	-419.99M	1.58B	-516.17M
EBITDA	8.17B	6.45B	-1.69B	-287.02M	-1.73B
Net Income	4.60B	2.64B	-5.23B	-3.85B	-5.20B
Balance Sheet
Total Assets	30.60B	29.18B	31.21B	28.44B	29.67B
Cash, Cash Equivalents and Short-Term Investments	5.32B	4.23B	6.71B	3.11B	2.64B
Total Debt	23.15B	24.30B	32.92B	24.15B	21.37B
Total Liabilities	30.08B	30.51B	35.21B	27.24B	24.65B
Stockholders Equity	527.53M	-1.33B	-4.00B	1.20B	5.02B
Cash Flow
Free Cash Flow	5.52B	7.91B	-2.41B	-977.32M	-3.81B
Operating Cash Flow	6.72B	8.27B	-2.11B	-449.61M	-2.97B
Investing Cash Flow	-1.52B	-124.64M	-1.32B	-518.49M	-831.96M
Financing Cash Flow	-4.11B	-10.62B	7.04B	1.44B	3.16B

MGM China Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2282, the sentiment is Positive. The current price of 15.56 is above the 20-day moving average (MA) of 12.71, above the 50-day MA of 11.58, and above the 200-day MA of 10.45, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 88.31 is Negative, neither overbought nor oversold. The STOCH value of 98.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2282.

MGM China Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0027	78 Outperform	$168.79B	19.27	11.92%	2.59%	17.34%	28.21%
1928	77 Outperform	HK$155.55B	19.08	203.51%	10.29%	6.04%	50.60%
1128	71 Outperform	HK$35.06B	10.89		5.55%	16.27%	172.71%
2282	60 Neutral	HK$59.13B	12.85		1.61%	26.22%	74.49%
Sector *	57 Neutral	HK$24.54B	3.89	-2.03%	6.19%	-0.31%	-67.70%
0880	50 Neutral	$22.23B	7,825.00	0.03%	―	31.24%	―
0200	34 Underperform	$12.03B	―	-220.97%	―	23.05%	55.01%

MGM China Holdings Corporate Events

MGM China Holdings Secures Shareholder Approval for Key Resolutions at AGM

MGM China Holdings Limited announced that all proposed resolutions at its Annual General Meeting held on May 22, 2025, were approved by shareholders. The resolutions included the approval of audited financial statements, declaration of a final dividend, re-election of directors, and granting of mandates related to share issuance and repurchase. This successful approval of resolutions indicates strong shareholder support and positions the company for continued operational and strategic initiatives.

The most recent analyst rating on (HK:2282) stock is a Buy with a HK$13.25 price target. To see the full list of analyst forecasts on MGM China Holdings stock, see the HK:2282 Stock Forecast page.

MGM China Highlights Q1 2025 Financial Disclosure by Parent Company

MGM China Holdings Limited announced that its controlling shareholder, MGM Resorts International, has released its unaudited financial results for the first quarter of 2025. These results include financial information about MGM China, prepared under US GAAP, which may not be directly comparable to MGM China’s own financial statements prepared under IFRS. Stakeholders are advised that the financial results in the release are unaudited and not guaranteed to align with MGM China’s future financial disclosures.

MGM China Announces Release of MGM Resorts International’s Q1 2025 Report

MGM China Holdings Limited announced that its controlling shareholder, MGM Resorts International, has released its unaudited quarterly report for the first quarter of 2025. The report, filed with the SEC, includes financial information about MGM China and its subsidiaries. Shareholders and potential investors are advised to exercise caution as the financial information has not been audited or reviewed by MGM China’s auditor.

MGM China Secures HK$23.4 Billion Credit Facility

MGM China Holdings Limited has entered into agreements for a new revolving credit facility worth up to HK$23.4 billion, which will be used to refinance existing credit facilities and support general corporate purposes. The facility, set to mature 60 months after the agreement date, includes a change of control provision requiring repayment if MGM Resorts International’s ownership falls below 50%, highlighting the strategic importance of maintaining its current ownership structure.

MGM China Announces Final Dividend for 2024

MGM China Holdings Limited announced a final cash dividend of HKD 0.251 per share for the financial year ending December 31, 2024. The dividend will be paid on June 12, 2025, following shareholder approval on May 22, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

MGM China Holdings Announces 2025 AGM with Key Resolutions

MGM China Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 22, 2025, at MGM COTAI, Macau. The meeting will address several key resolutions, including the approval of audited financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as the independent auditor. Additionally, the company seeks shareholder approval for a general mandate to issue additional shares, which could impact its capital structure and shareholder value.