HK Stock Market Move | MGM CHINA (02282) rises nearly 8%; Morgan Stanley says the company's Q3 results were better than market concerns, and further deleveraging is expected to boost the dividend yield.

MGM CHINA (02282) rose nearly 8%, up 5.81% as of press time to HK$9.65, with turnover of HK$16.9461 million. On the news front, MGM CHINA recently disclosed its third-quarter results. CICC noted that the company's third-quarter net revenue was RMB8.926 billion, up 5% year-on-year and 3% quarter-on-quarter, reaching 155% of the same period in 2019; adjusted EBITDA was RMB2.395 billion, up 1% year-on-year and 3% quarter-on-quarter, also recovering to 155% of the same period in 2019, above the market forecast of RMB2.297 billion, mainly driven by an increase in gross gaming revenue market share and better profitability across business segments. Morgan Stanley believes that MGM CHINA's third-quarter results were better than market concerns. The bank considers the company's valuation attractive, with EV/EBITDA at 6.2x on both a third-quarter annualized basis and 2027 market expectations. The company's operating performance under industry headwinds outperformed peers, and further deleveraging is expected to help boost the current 5.6% dividend yield. Market expectations for 2026 corporate EBITDA imply fourth-quarter EBITDA of approximately HK$1.974 billion, up 1% quarter-on-quarter and down 19% year-on-year; the bank views this threshold as low and expects 2026 market forecasts to be revised upward.