Shares rose after Citi said visitor counts and gaming revenue rebounded after the World Cup, even as second-quarter profit softened and the bank kept a Buy rating with a HK$13.7 target price.
MGM China shares rose on July 30 after the company reported first-half 2026 revenue growth and Citi said business at its Macau properties rebounded quickly after the FIFA World Cup ended. The stock was up 3.09% at HK$11.36 by midday, with turnover of HK$38.85 million. The company reported first-half revenue of HK$17.39 billion, up 4.4% from a year earlier, while adjusted EBITDA fell 1.9% to HK$4.78 billion. Earlier company disclosures showed record first-half net revenue of about HK$17.4 billion, market share of about 15.9%, average occupancy of 93.5% and total liquidity of about HK$24.7 billion as of June 30, 2026. Second-quarter momentum weakened, with revenue of HK$8.62 billion down 0.5% year over year and adjusted EBITDA of HK$2.33 billion down 7.4%, according to unaudited results released by controlling shareholder MGM Resorts International. In U.S. dollar terms, second-quarter revenue was $1.101 billion, down 0.8%, while segment adjusted EBITDAR fell 14.8% to $257 million. Citi maintained its Buy rating and HK$13.7 target price, implying about 20% upside from the midday share price. The bank said property EBITDA margin held at 27% in the second quarter despite World Cup-related pressure, while gaming revenue market share rose roughly 1 percentage point from the first quarter to 16.4%. Management told Citi that gaming volumes began recovering in the second week of July, and in the first full week after the tournament, daily visitor counts and adjusted gaming revenue at MGM China's two properties exceeded first-quarter 2026 levels. Citi also said the stock could offer an expected 2026 dividend yield of about 5% if MGM China maintains a 50% payout ratio. MGM China paid a final dividend of HK$0.353 per share in March 2026 and an interim dividend of HK$0.313 in August 2025. The company has also continued operational upgrades and expansion efforts, including nearly 60 Prime Wellness Suites at MGM COTAI, the opening of Chatterbox Café at MGM MACAU, and the acquisition of MGM Asia Pacific Limited from MGM Resorts International to strengthen oversight of MGM Hospitality.