HK Stock Market Move | MGM CHINA (02282) rebounds more than 3% as Goldman Sachs believes recent price adjustments were somewhat excessive.

MGM CHINA (02282) rebounded by more than 3%, as of the time of writing, it rose by 3.02% to 12.61 Hong Kong dollars, with a turnover of 52.6374 million Hong Kong dollars. On the news front, Goldman Sachs released a research report stating that it is estimated that MGM CHINA will have a 6% to 7% impact on EBITDA due to paying additional royalties to its parent company, and this will lead to a reduction of profit forecast by about 13% to 14%. It is expected that if the company maintains a dividend payout ratio of about 50%, it may lead to a decrease in dividend per share. After the announcement of the royalty fee related news, MGM CHINA's stock price fell by about 19%, and its valuation level has dropped to a forward P/E ratio of about 8 times for the fiscal year 2026, relative to the industry average of 11 to 12 times. The bank believes that the current price level is attractive, maintains a "buy" rating, and believes that the recent stock price adjustment seems somewhat overdone, giving a target price of 18.4 Hong Kong dollars.