JP Morgan: MGM China (02282) has been given a "neutral" rating with a target price of HK$13.2.

JPMorgan Chase released a research report stating that MGM China (02282) has a "Neutral" rating with a target price of HK$13.2. The bank believes that with an enterprise value multiple of 6 to 7 times, a price-earnings ratio of 9 to 10 times, and a forecasted dividend yield of over 5% in 2026, the valuation is attractive. MGM China's first quarter EBITDA exceeded market expectations by 5%, and EBITDA reached a record high of HK$2.6 billion after adjusting for win rate, a year-on-year increase of 13% and a quarterly increase of 2%. The bank points out that the company's stock price has fallen by 22% in the past six months, mainly due to the increase in license fees in December last year and the disappointing dividend policy last month, which has affected market perceptions of its corporate governance and shareholder friendliness.