HK Stock Market Move | MGM China (02282) falls nearly 11%, brand usage fee paid to parent company to double starting next year.

MGM CHINA (02282) fell more than 10% in early trading, dropping 10.85% to HK$13.89 as of the time of writing, with a trading volume of HK$224 million. On the news front, on December 23, MGM International Hotel Group announced a new long-term brand cooperation agreement with MGM CHINA. Morgan Stanley released a research report stating that starting from 2026, MGM CHINA will increase the brand usage fee paid to its parent company from 1.75% to 3.5%. It is estimated that the brand usage fee in 2026 will reach HK$1.2 billion, significantly higher than the HK$600 million in 2025. The report predicts that MGM CHINA's enterprise EBITDA in 2026 will decrease by 7% compared to previous expectations, a 5% year-on-year decrease, and the EBITDA profit margin will narrow by 220 basis points. The proportion of brand usage fees to enterprise EBITDA will rise to 15.2%.