[ET Net News Agency, 17 April 2018] CICC Research lowered its target price for MGM
China Holdings (02282) to HK$25.8 from HK$26.8, and reiterated its "buy" rating.
The research house expects adjusted EBITDA for MGM China to be HK$1.25bn (-4% QoQ & +2%
YoY) versus the industry's +7% QoQ & +24% YoY.
It believes MGM to be the only operator to suffer sequential EBITDA decline due to loss
of market share in MGM Peninsula mass segment as gaming tables were relocated to MGM Cotai
in February, and muted ramp up of MGM Cotai. Compared with 4Q 2017, CICC expects MGM's GGR
market share to remain flat with a slight gain in the Mass segment offset by a loss in the
VIP segment.
It fine-tuned its FY2018/19 earnings forecasts by -2%/+7% to reflect muted early-stage
ramp up of MGM Cotai since opening. (KL)