MGM China Holdings (2282) AI Stock Analysis

• Market Cap: $58.47B
• Dividend Yield: 5.75%
• Average Volume (3M): 7.48M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.71
• 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: 3,801,514,400
• 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: 1.12
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 8.07
• 1Y Price Target: $19.20
• Price Target Upside: 20.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$18.50 ▲(15.99% 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.

MGM China Holdings Business Overview & Revenue Model

Company Description

MGM China Holdings Limited is a leading gaming and hospitality company based in Macau, a special administrative region of China known for its vibrant tourism and gaming industry. The company operates two integrated resorts, MGM Macau and MGM Cotai, which feature a wide range of amenities including luxury accommodations, fine dining, entertainment, and a diverse selection of gaming options. MGM China is a subsidiary of MGM Resorts International and is focused on providing world-class experiences to both local and international visitors.

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: Positive
• Last Price: 15.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 15.95 is above the 20-day moving average (MA) of 15.51, above the 50-day MA of 15.52, and above the 200-day MA of 12.84, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 49.42 is Neutral, 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
2282	74 Outperform	$58.47B	13.58	452.88%	5.75%	5.59%	-4.38%
0027	72 Outperform	$180.77B	18.81	12.59%	3.01%	4.94%	15.38%
1928	62 Neutral	$159.84B	22.38	111.35%	2.47%	-3.13%	-13.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1128	61 Neutral	$35.06B	18.97	―	5.55%	-4.41%	-31.45%
0200	46 Neutral	$10.76B	-54.80	-28.54%	―	13.18%	86.18%
0880	40 Neutral	$20.31B	-1,243.48	-0.13%	―	12.29%	98.20%

MGM China Holdings Corporate Events

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.

MGM China Revises Annual Caps Amid Growing Demand

MGM China Holdings Limited has announced a revision of its annual caps for continuing connected transactions under the Fourth Renewed Master Service Agreement with Shun Tak Group. This revision is due to an anticipated increase in demand for offsite gaming accommodation, leading to higher room purchases by MGMGP than initially expected. The revised caps reflect the company’s strategic response to market demands, ensuring compliance with the Hong Kong Stock Exchange’s Listing Rules, and highlight the interconnected business interests of key stakeholders, including substantial shareholder Ms. Pansy Ho.

The most recent analyst rating on (HK:2282) stock is a Buy with a HK$18.70 price target. To see the full list of analyst forecasts on MGM China Holdings stock, see the HK:2282 Stock Forecast page.

MGM China Declares Interim Dividend for 2025

MGM China Holdings Limited has declared an interim dividend of HKD 0.313 per share for the financial year ending December 31, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may influence investor sentiment positively, reinforcing its position in the competitive Macau gaming market.

The most recent analyst rating on (HK:2282) stock is a Buy with a HK$23.00 price target. To see the full list of analyst forecasts on MGM China Holdings stock, see the HK:2282 Stock Forecast page.