Lyon: Raised MGM China (02282) target price to HK$22.7 with potential for revaluation.

Lyon released a research report stating that MGM CHINA (02282) has potential for revaluation, with its 2026 EV/EBITDA and P/E ratios still at a low level among the six Macau gaming companies. After evaluating forward-looking indicators such as market share, profit margin, return on capital, and dividend payout ratio growth, the bank believes that the revaluation is reasonable. Lyon points out that the current price of MGM CHINA is equivalent to 7.7 times 2026 EV/EBITDA, 15% lower than the industry average. The bank has raised the target EV/EBITDA multiple from 8.8 times to 10.6 times, which is 0.5 standard deviations below the long-term average, and has raised the target price from HK$18.3 to HK$22.7. They maintain an outperform rating.