Citigroup: MGM China (02282) first-quarter property EBITDA exceeds expectations, maintaining a "buy" rating.

Citigroup released a research report stating that it maintains a "buy" rating on MGM China (02282) with a target price of HK$17.3, and expects that its new gaming and non-gaming facilities will help MGM China defend its market share in the 2026 fiscal year. MGM China's first quarter property EBITDA reached 2.458 billion yuan, a year-on-year increase of 4%, exceeding the bank's and market's expectations by 5% to 6%, mainly due to effective cost control by management. Although the VIP win rate at MGM Macau was significantly below normal levels (only 0.6%), the first quarter property EBITDA profit margin remained stable at 28%. Management emphasized that the current scale of operating expenses is in line with growth and that the profit margin is sustainable. 100 suites at MGM Macau will be renovated. Management expects corporate spending in 2026 (excluding stock incentives) to be approximately $45 million to $50 million, lower than previous guidance.