MGM China Holdings (2282) AI Stock Analysis

• Market Cap: HK$47.96B
• Dividend Yield: 5.73%
• Average Volume (3M): 7.48M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.76
• Revenue Growth: 5.59%
• EPS Growth: -4.38%
• Country: HK
• Employees: 13,327
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.33
• Shares Outstanding: 3,800,000,000
• 10 Day Avg. Volume: 8,615,955
• 30 Day Avg. Volume: 7,480,770
• PEG Ratio: 0.11
• Price to Book (P/B): 71.62
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 6.85
• 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$19.42
• Price Target Upside: 52.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$14.00 ▲(10.24% Upside)

MGM China Holdings shows strong technical momentum and a solid valuation with a reasonable P/E ratio and attractive dividend yield. Financial performance indicates recovery and growth, though high leverage and operational cash flow management require attention. The stock's bullish trend is tempered by overbought technical indicators, suggesting potential short-term volatility.

Positive Factors

Improved profitability and revenue recovery

Sustained revenue growth and margin improvement indicate an operational turnaround rather than a one-off bounce. Higher gross and net margins and return to positive EBIT/EBITDA support more resilient operating cash flows, enhancing the company's ability to fund operations, invest in assets, and sustain dividends over coming quarters.

Strong free cash flow generation in 2024

Significant free cash flow in 2024 demonstrates the company's ability to convert earnings into cash, which is a durable buffer against cyclical tourism swings. Reliable FCF supports deleveraging, capital expenditure for resort upkeep, and shareholder returns, improving long-term financial flexibility.

Prime Macau assets and parent affiliation

Owning two integrated resorts in Macau provides entrenched market positions, diversified non-gaming revenue streams, and scale in premium hospitality. Being a subsidiary of MGM Resorts gives strategic, operational and brand support, aiding access to best practices and potential capital if needed.

Negative Factors

High leverage and low equity ratio

Persistent high leverage and a low equity ratio reduce financial flexibility and increase interest burden, making the company more vulnerable to cyclical downturns or cost shocks. Even with improving equity, heavy debt constrains capital allocation and raises refinancing risk over a multi-quarter horizon.

Decline in operating cash flow from 2023 to 2024

A falling operating cash flow trend, despite strong free cash flow in 2024, signals potential volatility in core cash generation. If operational cash conversion weakens further, the company may face pressure to rely on debt or reduce investments, impairing long-term competitiveness and resilience.

Concentration exposure to Macau tourism and regulation

Heavy reliance on Macau tourism and sensitivity to local regulatory changes create structural concentration risk. Policy shifts, travel restrictions, or weaker inbound demand can materially affect revenue and margins, limiting revenue diversification and increasing cyclicality over the next several quarters.

MGM China Holdings Business Overview & Revenue Model

Company Description

MGM China Holdings Limited, an investment holding company, engages in the development, ownership, and operation of gaming and lodging resorts in the Greater China region. The company develops and operates casino games of chance and other casino games, and related hotel and resort facilities, as well as provides hotel management services; and develops integrated resorts in Macau. It owns and operates MGM Macau, an integrated resort that includes a casino with 845 slot machines and 289 gaming tables; a hotel with 585 hotel rooms, suites, and villas; and amenities, including 8 restaurants, retail outlets, pool, and spa facilities, as well as a convention space. The company also owns MGM Cotai, a resort that consists of a casino with 839 slot machines and 263 gaming tables; a hotel with 1,418 hotel rooms, suites, and skylofts; 12 restaurants and bars; retail outlets; and a meeting space, as well as other non-gaming offerings. In addition, MGM China Holdings Limited is involved in the provision of outsourcing services, including information technology, accounting, human resources, hotel reservation, and convention consultation. The company was incorporated in 2010 and is headquartered in Macau. MGM China Holdings Limited is a subsidiary of MGM Resorts International Holdings, Ltd.

How the Company Makes Money

MGM China generates revenue primarily through its gaming operations, which include table games, slot machines, and other gaming-related activities. The company's revenue model is largely driven by the performance of its casinos, where it earns money from the gaming activities of patrons. In addition to gaming revenue, MGM China also benefits from non-gaming sources such as hotel accommodations, dining, retail, and entertainment offerings. Significant partnerships with various entertainment and hospitality brands enhance its market appeal and guest experiences, further contributing to overall earnings. The company's profitability is also influenced by factors such as tourism trends, regulatory changes in Macau, and economic conditions in the region.

MGM China Holdings Financial Statement Overview

Summary

MGM China Holdings has shown a strong recovery in its income statement metrics with improved profitability and revenue growth. The balance sheet shows signs of improvement with positive equity, but high leverage remains a risk. Cash flow metrics are strong, though operational cash flow management requires attention.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.83B	31.39B	24.68B	5.27B	9.41B	5.10B
Gross Profit	17.99B	11.87B	19.67B	-419.99M	1.58B	-516.17M
EBITDA	8.10B	8.17B	6.45B	-1.52B	-287.02M	-1.61B
Net Income	4.30B	4.60B	2.64B	-5.23B	-3.85B	-5.20B
Balance Sheet
Total Assets	30.86B	30.60B	29.18B	31.21B	28.44B	29.67B
Cash, Cash Equivalents and Short-Term Investments	5.52B	5.32B	4.23B	6.71B	3.11B	2.64B
Total Debt	21.82B	23.15B	24.30B	32.92B	24.15B	21.37B
Total Liabilities	28.90B	30.08B	30.51B	35.21B	27.24B	24.65B
Stockholders Equity	1.97B	527.53M	-1.33B	-4.00B	1.20B	5.02B
Cash Flow
Free Cash Flow	5.97B	5.52B	7.91B	-2.41B	-977.32M	-3.81B
Operating Cash Flow	7.73B	6.72B	8.27B	-2.11B	-449.61M	-2.97B
Investing Cash Flow	-1.84B	-1.52B	-124.64M	-1.32B	-518.49M	-831.96M
Financing Cash Flow	-4.82B	-5.66B	-10.62B	7.04B	1.44B	3.16B

MGM China Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2282, the sentiment is Negative. The current price of 12.7 is below the 20-day moving average (MA) of 13.78, below the 50-day MA of 15.22, and below the 200-day MA of 13.78, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 39.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2282.

MGM China Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2282	74 Outperform	HK$47.96B	11.14	452.88%	5.73%	5.59%	-4.38%
0027	72 Outperform	HK$175.18B	18.21	12.59%	3.06%	4.94%	15.38%
1928	72 Outperform	HK$151.99B	21.28	111.35%	2.39%	-3.13%	-13.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1128	61 Neutral	HK$31.02B	16.78	―	5.92%	-4.41%	-31.45%
0200	45 Neutral	HK$9.58B	-50.06	-28.54%	―	13.18%	86.18%
0880	40 Neutral	HK$16.55B	-1,021.74	-0.13%	―	12.29%	98.20%

MGM China Holdings Corporate Events

MGM China Renews Long-Term MGM Branding Deal Under HKEX Connected Transaction Rules

MGM China Holdings has signed a new Long Term Branding Agreement with its connected counterparties to replace the existing Third Renewed Branding Agreement, which is due to expire on 31 December 2025. The new agreement, effective from 1 January 2026 and with a term of up to 20 years, governs the continued use of the MGM brand and related arrangements and has an annual cap for the year ending 31 December 2026 that triggers reporting, announcement and annual review requirements under Hong Kong’s connected transaction rules, but is exempt from independent shareholders’ approval. The company will set annual caps for subsequent years in line with listing requirements, and an independent financial adviser has confirmed that the extended duration is consistent with normal business practice for similar long-term branding arrangements.

The most recent analyst rating on (HK:2282) stock is a Buy with a HK$18.50 price target. To see the full list of analyst forecasts on MGM China Holdings stock, see the HK:2282 Stock Forecast page.

MGM China Renews Key Connected Transactions Ahead of 2026

MGM China Holdings has renewed several key connected-party agreements that underpin its development, services and international marketing operations, entering into a Fifth Renewed Development Agreement, Fifth Renewed Master Service Agreement, Seventh Renewed BEH Marketing Agreement and First Renewed International Marketing Agreement, all effective for three years from January 1, 2026. These renewals, which replace existing arrangements expiring at the end of 2025, classify as continuing connected transactions under Hong Kong listing rules; most fall into the partially exempt category, requiring reporting, announcement and annual review but no independent shareholder approval, while the BEH marketing arrangement is fully exempt owing to its small size, indicating that MGM China is maintaining its group-related operational structure with limited incremental compliance and governance implications for investors.

The most recent analyst rating on (HK:2282) stock is a Buy with a HK$18.50 price target. To see the full list of analyst forecasts on MGM China Holdings stock, see the HK:2282 Stock Forecast page.

MGM China Names President Kenneth Feng as New Chief Executive Officer

MGM China Holdings has appointed its current president and executive director, Kenneth Xiaofeng Feng, as chief executive officer effective 19 December 2025, formalising a leadership transition that elevates a long-serving MGM executive with extensive international operations and finance experience. Under a three-year service agreement, Feng will receive an annual fixed salary of US$1.5 million plus a discretionary performance-based bonus, reflecting the board’s confidence in his strategic and operational capabilities as the group navigates the competitive Macau gaming market, while confirming that he holds significant share options and has no disclosed relationships with other major stakeholders.

The most recent analyst rating on (HK:2282) stock is a Buy with a HK$18.50 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 Third Quarter Financial Disclosure by Parent Company

MGM China Holdings Limited announced that its controlling shareholder, MGM Resorts International, released its unaudited financial results for the third quarter of 2025. The results, prepared under US GAAP, include financial information about MGM China, but are not directly comparable to MGM China’s own financial statements prepared under IFRS. Stakeholders are advised that the unaudited results may not reflect MGM China’s financial performance accurately.

The most recent analyst rating on (HK:2282) stock is a Hold with a HK$16.00 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 MGM Resorts’ Quarterly Financial Disclosure

MGM China Holdings Limited announced that its controlling shareholder, MGM Resorts International, has released its unaudited quarterly report for the third quarter and nine months ending September 30, 2025. The report, filed with the SEC, includes financial information and operating statistics pertinent to MGM China and its subsidiaries. Shareholders and potential investors are advised to exercise caution as the financial data has not been audited or reviewed by MGM China’s auditors, and the accounting standards differ from those used by MGM China.

The most recent analyst rating on (HK:2282) stock is a Hold with a HK$16.00 price target. To see the full list of analyst forecasts on MGM China Holdings stock, see the HK:2282 Stock Forecast page.