Investment Rating - The report maintains a "Buy" rating for MGM China (2282.HK) [1] Core Views - The company's revenue and profit continue to recover in Q3 2024, with a total revenue of HKD 7.25 billion, which is 125.5% of Q3 2019 levels, meeting market expectations [2] - The management has declared a special dividend of HKD 0.35 per share, reflecting confidence in the long-term prospects of the Macau business [3] - The report projects a decrease in net income forecasts for 2024-2026 to HKD 31.38 billion, HKD 33.64 billion, and HKD 35.19 billion respectively, with adjusted property EBITDA estimates lowered to HKD 9.24 billion, HKD 10.21 billion, and HKD 10.85 billion [3] Summary by Sections Revenue and Profitability - In Q3 2024, the company achieved total revenue of HKD 7.25 billion, recovering to 125.5% of Q3 2019 levels, with gaming revenue at HKD 6.24 billion (120.4% of Q3 2019) and non-gaming revenue at HKD 1.01 billion (168.2% of Q2 2019) [2] - The adjusted property EBITDA for Q3 2024 was HKD 1.98 billion, recovering to 128.1% of the same period in 2019, slightly below market expectations [2] Non-Gaming Business Development - The company's non-gaming initiatives are expected to enhance its competitiveness in the mid-market segment, with strong performance during the recent Golden Week, achieving 120% of 2019 visitor levels [2] - Upcoming projects, including the collaboration with director Zhang Yimou for the "MGM 2049" show and the new MGM Museum set to open in 2025, are anticipated to further boost visitor traffic [2] Market Position and Share - In Q3 2024, the company reported total gaming revenue of HKD 7.92 billion, recovering to 113.5% of 2019 levels, with VIP and mass market revenues at HKD 0.73 billion and HKD 7.19 billion respectively [3] - The company's market share for VIP and mass market segments saw a slight decline, with market shares of 5.7% and 17.4% respectively [3] Financial Forecasts - The report revises the net income forecasts for 2024-2026 to HKD 31.38 billion, HKD 33.64 billion, and HKD 35.19 billion, with adjusted property EBITDA forecasts lowered to HKD 9.24 billion, HKD 10.21 billion, and HKD 10.85 billion [3] - The current stock price corresponds to EV/adjusted property EBITDA multiples of 6.9, 6.2, and 5.9 for the years 2024, 2025, and 2026 respectively [3]

MGM CHINA HOLDINGS LIMITED 2282 6028, 40258, 40634, 5036 內幕消息 我們的控股股東 美高梅國際酒店集團業績 截至2024年9月30日止第三季度及九個月 表格10-Q季度報告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示不會就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 - 1 - 美高梅國際酒店集團已根據適用於在紐約證券交易所上市的公司的持續披露責任向美國 證券交易委員會（「美國證交會」）就其未經審核季度報告（包括季度財務資料及表格10-Q規 定的若干營運統計數據）存檔。是次存檔包括有關美高梅中國及其附屬公司（「我們」或「本 集團」）業務的分類財務資料。公眾人士可於公開網頁查閱有關存檔資料。 美高梅國際酒店集團已於2024年10月30日（紐約時間下午4時30分）或前後公佈其截至2024 年9月30日止第三季度及九個月的未經審核季度報告（「季度報告」）。為確保美高梅中國全 體股東及潛在投資者均同樣及適時取得有關本集團的資料，閣下如欲查閱由美高梅國 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示不會就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 MGM CHINA HOLDINGS LIMITED 2282 6028, 40258, 40634, 5036 內幕消息 我們的控股股東美高梅國際酒店集團 截至2024年9月30日止第三季度的未經審核業績 - 1 - 美高梅國際酒店集團已於2024年10月30日（紐約時間下午4時15分）或前後公佈其截至2024 年9月30日止第三季度的未經審核業績（「盈利公佈」）。閣下如欲查閱由美高梅國際酒店集 團編製並向美國證券交易委員會存檔的盈利公佈，請瀏覽http://www.sec.gov/cgi-bin/ browse-edgar?action=getcompany&CIK=0000789570&owner=exclude&count=40& hidefilings=0。盈利公佈載有美高梅中國及其附屬公司（「我們」或「本集團」）的財務資料， 可供公眾查閱。 本公告乃根據證券及期貨條例（第571章）第XIVA部 ...

Financial Performance - Entertainment revenue for the first half of 2024 reached HKD 14,162,233, a significant increase from HKD 9,602,035 in 2023, representing a growth of 47.5%[5] - Adjusted EBITDA for the period was HKD 4,948,002, up from HKD 3,160,081 in the previous year, reflecting a year-on-year increase of 56.5%[5] - The operating profit for the first half of 2024 was HKD 3,522,333, compared to HKD 1,866,591 in 2023, marking an increase of 88.5%[5] - Profit attributable to owners of the company for the period was HKD 2,685,454, a substantial rise from HKD 820,914 in the same period last year, indicating a growth of 227.5%[5] - Basic earnings per share increased to HKD 0.706, compared to HKD 0.216 in 2023, reflecting a growth of 226.4%[5] - Operating revenue for the six months ended June 30, 2024, reached HKD 16,218.0 million, a 52.3% increase from HKD 10,649.4 million in the same period of 2023[27] - The adjusted EBITDA for the six months ended June 30, 2024, was HKD 4,948,002, an increase of 56.4% compared to HKD 3,160,081 for the same period in 2023[25] - The group reported a net profit attributable to the company’s owners of HKD 2,685 million for the six months ended June 30, 2024, compared to HKD 821 million for the same period in 2023, marking a significant increase of 227.5%[152] Market Presence and Strategy - MGM China Holdings Limited operates two major integrated resorts in Macau, MGM Macau and MGM Cotai, enhancing its market presence in the region[7] - The company focuses on a unique strategy targeting the mid-to-high-end market, aiming to provide diverse resort products including innovative entertainment and art attractions[10] - The company benefits from strong leadership and a well-experienced management team, enhancing its competitive advantages in the industry[10] - The company continues to identify innovative investment opportunities in both gaming and non-gaming facilities to strengthen its market position[11] - The company is optimistic about long-term growth in the Macau market due to significant financial investments and commitments made by six gaming operators over the new 10-year gaming license period[12] Visitor and Gaming Statistics - Total inbound visitors to Macau increased by 43.6% for the six months ended June 30, 2024, compared to the same period in 2023, while the number of visitors from mainland China rose by 52.9%[12] - Macau's gross gaming revenue for the six months ended June 30, 2024, increased by 41.9% to HKD 110.4 billion compared to the same period in 2023[12] - The company's overall gaming market share rose from 9.5% in 2019 to 15.2% in 2023, and further to 16.5% for the six months ended June 30, 2024[14] - The company's mass market gaming segment accounted for 87% of its gross gaming revenue for the six months ended June 30, 2024[15] Operational Efficiency and Customer Experience - The company is focusing on enhancing operational efficiency and customer experience through improved product and service quality, asset utilization, and operational efficiency across all business segments[11] - MGM China has enhanced customer experience by upgrading and expanding hotel, dining, and exhibition services, alongside significant marketing efforts to boost brand recognition[17] - The company is enhancing its gaming experience by renovating dedicated gaming areas for mid-to-high-end customers and reallocating VIP tables to maximize revenue[15] Financial Management and Investments - The company has committed to invest a total of MOP 19.7 billion (approximately HKD 19.1 billion) during the contract period, with MOP 18 billion (approximately HKD 17.5 billion) expected to be allocated to developing international customer markets and non-gaming projects, representing about 91% of the total investment[11] - The company issued USD 500 million of 7.125% senior notes due in 2031, with proceeds used to repay part of the outstanding amounts under the amended revolving credit facility[10] - The company has estimated potential litigation costs related to ongoing legal proceedings but believes they will not significantly impact its financial performance[60] Employee and Operational Costs - Employee costs rose by 28.0% to HKD 2.2795 billion, reflecting the hiring of additional staff to support increased business activities[44] - The company reported a significant increase in employee costs, which rose to HKD 2,279,459 thousand from HKD 1,780,149 thousand, marking a rise of 28.0%[137] - Other expenses and losses increased by 59.7% to HKD 1.6817 billion, driven by advertising and promotional expenses rising 110.1% to HKD 719.8 million[46] Shareholder Information and Dividends - The board has declared a special dividend of HKD 0.353 per share, totaling approximately HKD 1.341 billion, to be paid around October 4, 2024[85] - The company did not recommend an interim dividend for the six months ended June 30, 2024, based on its current financial position and future capital needs[85] - The special dividend should not be viewed as an indicator of future profits or dividend levels[85] Debt and Financing - Total borrowings as of June 30, 2024, amounted to HKD 23.7697 billion, a decrease from HKD 24.0987 billion as of December 31, 2023[61] - The company has no secured debt or subordinated debt as of the report date[66] - The company established an unsecured revolving credit facility totaling HKD 9.75 billion, maturing on May 15, 2024[68] - The company has an unused and available unsecured credit facility of HKD 11.08 billion as of June 30, 2024[68] Stock Options and Incentives - The company has adopted a comprehensive incentive plan allowing for the issuance of stock options and performance stock units, with a typical vesting period of four to five years[6] - The company maintains stock option plans from 2011 and 2020 to incentivize employees and directors contributing to the group's long-term growth[100] - The total number of stock options granted during the reporting period was zero for directors, while employees received various grants totaling 11,910,400 options[112] Compliance and Governance - The company has complied with the corporate governance code as per the listing rules during the six months from January 1, 2024, to June 30, 2024[133] - The company’s board of directors confirmed compliance with the securities trading code during the six months ending June 30, 2024[134]

Financial Performance - MGM China Holdings Limited reported operating revenue of HKD 16,217,982 for the six months ended June 30, 2024, an increase of 52.0% from HKD 10,649,439 in the same period of 2023[2]. - Adjusted EBITDA for the same period was HKD 4,948,002, up 56.5% from HKD 3,160,081 year-over-year[2]. - Net profit attributable to shareholders rose significantly from HKD 820,914 to HKD 2,685,454, marking a growth of 227.0%[3]. - Basic earnings per share increased to 70.6 HK cents, compared to 21.6 HK cents in the previous year, reflecting a growth of 227.6%[4]. - Operating profit for the six months ended June 30, 2024, was HKD 3.522 billion, compared to HKD 1.867 billion for the same period in 2023, indicating an increase of 88.5%[12]. - The group reported a profit attributable to owners of HKD 2.685 billion for the six months ended June 30, 2024, compared to HKD 820.914 million for the same period in 2023, representing a 227.5% increase[12]. - The company reported a profit attributable to shareholders of HKD 2,685,454,000 for the six months ended June 30, 2024, compared to HKD 820,914,000 for the same period in 2023, representing a significant increase[18]. - The company’s profit attributable to owners increased from HKD 820.9 million to HKD 2.685 billion, reflecting improved financial performance[83]. Assets and Liabilities - The total assets of the company as of June 30, 2024, were HKD 30,034,712, compared to HKD 29,181,304 at the end of 2023, indicating a growth of 2.9%[5]. - The total liabilities decreased slightly from HKD 30,508,524 at the end of 2023 to HKD 30,086,956 as of June 30, 2024[7]. - As of June 30, 2024, the group reported a net current liability of HKD 21.361 billion, a significant decrease from HKD 51.874 billion as of December 31, 2023[9]. - The company’s non-current assets totaled HKD 23,824,079, down from HKD 24,038,700 at the end of 2023, a decrease of 0.9%[5]. - The company’s total borrowings as of June 30, 2024, amounted to HKD 23,769,705,000, a slight decrease from HKD 24,098,731,000 as of December 31, 2023[23]. Cash Flow and Financing - Cash and cash equivalents increased to HKD 5,214,454 from HKD 4,231,986, representing a growth of 23.2%[5]. - Total cash and cash equivalents amounted to HKD 52.145 billion as of June 30, 2024, up from HKD 42.320 billion as of December 31, 2023[9]. - The group incurred total financing costs of HKD 838.550 million for the six months ended June 30, 2024, down from HKD 978.768 million in the same period of 2023[14]. - Net cash generated from operating activities was HKD 4.257 billion, up from HKD 3.692 billion, mainly due to increased operating profit[88]. - Major cash outflows for the six months ended June 30, 2024, included HKD 5.8731 billion for the repayment of notes, HKD 808 million for interest payments, and HKD 1.3196 billion for dividends[91]. Dividends - The company did not declare an interim dividend for the six months ended June 30, 2024[3]. - The board declared a special dividend of HKD 0.104 per share, totaling HKD 395,300,000, paid on April 23, 2024[17]. - The final dividend for the year ended December 31, 2023, was approved at HKD 0.243 per share, amounting to HKD 924,300,000, paid on June 20, 2024[17]. Market and Operational Insights - MGM China Holdings Limited continues to benefit from the easing of COVID-19 travel restrictions in Macau, contributing to improved operational performance[3]. - The total number of inbound visitors to Macau increased by 43.6% for the six months ended June 30, 2024, compared to the same period in 2023, while the number of visitors from mainland China rose by 52.9%[49]. - Macau's gross gaming revenue for the six months ended June 30, 2024, increased by 41.9% to HKD 110.4 billion compared to the same period in 2023[49]. - The overall gaming market share of MGM Grand increased from 9.5% in 2019 to 15.2% in 2023 and further to 16.5% for the six months ended June 30, 2024[51]. - The mid-market gaming business accounted for 87% of MGM Grand's gross gaming revenue for the six months ended June 30, 2024[52]. Investments and Future Plans - The company has committed to investments in gaming and non-gaming projects totaling MOP 16.7 billion (approximately HKD 16.2 billion), with MOP 15 billion (approximately HKD 14.6 billion) allocated to non-gaming projects[20]. - The company plans to launch two new gaming products in Q4 2024, aiming to capture a larger share of the market[127]. - The company is exploring potential acquisitions to enhance its portfolio and market reach, with a budget of up to $500 million allocated for this purpose[129]. - The company aims to enhance customer experience by improving product and service quality and increasing operational efficiency across all business segments[46]. Employee and Operational Metrics - The company employed 12,746 full-time and part-time employees as of June 30, 2024, an increase from 11,786 employees as of December 31, 2023[112]. - Employee costs increased by 28.0% to HKD 2.795 billion, primarily due to hiring additional staff to support business growth[76]. - The occupancy rate for hotel rooms was 94.1%, slightly up from 93.8% in 2023[65]. Corporate Governance and Compliance - The company has complied with the corporate governance code provisions during the reporting period from January 1, 2024, to June 30, 2024[116]. - The interim financial statements for the reporting period have been reviewed by the audit committee and the company's auditors[118]. - The company has adopted a more stringent code of conduct for securities trading by its directors and senior management, which has been adhered to during the reporting period[117].

Investment Rating and Target Price - Maintain Buy rating with a target price of HKD 16.1, corresponding to a 25-year EV/EBITDA of 7.5x [2] - The target price was revised down from HKD 18.0 due to potential peaking growth in Macau operations [9] Core Views - Macau operations (MGM China) reported Q2 2024 net revenue of USD 1.02 billion, up 37% YoY but down 4% QoQ [2] - Adjusted EBITDA for Q2 2024 was USD 310 million, up 40% YoY and down 2% QoQ, recovering to 168% of 2019 levels [2] - MGM China's Q2 2024 EBITDA margin was 30.7%, compared to 24.5% in Q2 2019 and 30.3% in Q1 2024 [2] - VIP revenue recovery is expected to reach 46%/48%/48% of 2019 levels in 2024/2025/2026, while mass market revenue is projected to recover to 170%/187%/196% [2] - MGM China's market share in Q2 2024 was approximately 15%, with expectations to maintain this level [4] Operational Performance - Q2 2024 gross gaming revenue (GGR) in Macau was USD 1.127 billion, recovering to 137% of Q2 2019 levels, outperforming the industry average of 77% [3] - VIP GGR in Q2 2024 was USD 113 million, recovering to 39% of Q2 2019 levels, while mass market GGR was USD 941 million, recovering to 205% [3] - Slot machine GGR in Q2 2024 was USD 74 million, recovering to 103% of Q2 2019 levels [3] - MGM Cotai reported Q2 2024 net revenue of USD 602 million with an EBITDA margin of 31.0%, while Macau MGM reported net revenue of USD 418 million with an EBITDA margin of 30.2% [3] Market and Industry Trends - Macau's total GGR in H1 2024 reached MOP 113.8 billion, exceeding half of the government's full-year target of MOP 216 billion [5] - Visitor arrivals to Macau in H1 2024 reached 16.72 million, recovering to 82.4% of 2019 levels, with mainland tourists being the primary driver [5] - Industry GGR is expected to recover to 79%/86% of 2019 levels in 2024/2025, reaching MOP 231 billion and MOP 252.1 billion respectively [5] Strategic Initiatives - MGM China is exploring the expansion of non-gaming services, including health and wellness offerings, to attract new and returning visitors [4] - The company plans to increase room capacity and enhance attractions such as the "MGM 2049" show by director Zhang Yimou [4] Financial Projections - Forecasted gaming revenue for 2024/2025/2026 is HKD 31.77 billion, HKD 34.65 billion, and HKD 36.22 billion, recovering to 118%/129%/135% of 2019 levels [2] - EBITDA for 2024/2025/2026 is projected at HKD 8.21 billion, HKD 8.97 billion, and HKD 9.38 billion, recovering to 81%/88%/92% of 2019 levels [9] - EPS for 2024/2025/2026 is forecasted at HKD 1.28, HKD 1.33, and HKD 1.36 [6]

Investment Rating - The report maintains a "Buy" rating for MGM China (2282.HK) [1] Core Views - The company's total gaming revenue for Q1 2024 reached HKD 9.45 billion, recovering to 140.8% of the same period in 2019, with VIP and mass market revenues at HKD 1.50 billion and HKD 7.95 billion respectively, recovering to 55.8% and 197.6% of 2019 levels [2][3] - The company's overall market share increased from 9.1% in Q1 2019 to 17.0% in Q1 2024, with a slight month-on-month increase in market share noted in March and April 2024 [2] - The adjusted property EBITDA for Q1 2024 was HKD 2.51 billion, exceeding Bloomberg consensus estimates by approximately 14%, and the EBITDA margin improved to 30.3% [3] Summary by Sections Revenue and Profit Forecast - Total revenue for 2023 is projected at HKD 24.68 billion, with a significant increase to HKD 33.40 billion in 2024, representing a year-on-year growth of 369% [2] - The adjusted property EBITDA is expected to rise from HKD 7.24 billion in 2023 to HKD 9.85 billion in 2024, reflecting a 117% increase [2] - The report forecasts earnings per share to increase from HKD 0.69 in 2023 to HKD 1.50 in 2024 [2] Business Expansion - MGM China is focusing on expanding its non-gaming business, including the addition of villas and suites in Macau and new dining services that have been well-received by consumers [3] - The company is collaborating with renowned director Zhang Yimou to create a resident show titled "MGM 2049" and is constructing a world-class museum in Macau to enhance cultural experiences for consumers [3] Market Position and Strategy - The management believes that the introduction of smart gaming tables by other operators will not significantly impact MGM China's competitive advantage, as the company has been utilizing smart tables since 2016 and has accumulated substantial consumer data [3] - The report projects that the company's adjusted property EBITDA margin will remain high, between 27% and 30%, throughout 2024 [3]

Financial Performance - Total revenue for 2023 reached HKD 24,684,210, a significant increase of 368% compared to HKD 5,268,569 in 2022[10] - Adjusted EBITDA for 2023 was HKD 7,235,246, recovering from a loss of HKD 1,274,355 in 2022[10] - The company reported a net profit of HKD 2,638,304 for 2023, compared to a loss of HKD 5,231,911 in the previous year[10] - The total gross gaming revenue for 2023 was MOP 183 billion, an increase of 334% from 2022[20] - The company reported a significant increase in revenue, achieving a total of $X billion, representing a Y% growth compared to the previous year[48] - The company reported a profit attributable to owners of HKD 2.638 billion, a significant recovery from a loss of HKD 5.232 billion in the previous year[153] Market Share and Visitor Statistics - The company’s market share increased from 9.5% in 2019 to 15.2% in 2023[23] - The number of visitors to the company’s hotels in 2023 was 106% of the 2019 levels[23] - In 2023, Macau's gross gaming revenue exceeded MOP 180 billion, with six licensed operators committing to a 20% increase in investment during the concession period[30] - The total number of inbound visitors to Macau increased by 394.9% in 2023 compared to 2022, with visitors from mainland China rising by 273.1%[103] - The company’s market share in Macau's gaming sector increased from 9.5% in 2019 to 15.2% as of December 31, 2023, following the acquisition of an additional 198 gaming tables[107] Operational Capacity and Investments - The company received operating rights for 750 gaming tables, up from 552 previously, enhancing operational capacity[23] - The company has committed to invest a total of MOP 16.7 billion (approximately HKD 16.2 billion) over the contract period, with MOP 15 billion (approximately HKD 14.6 billion) allocated for developing international markets and non-gaming projects, representing about 90% of the total investment[99] - The company has extended its revolving credit facility maturity date from May 15, 2024, to May 15, 2026[93] - The revised second revolving credit facility allows for an increased borrowing limit of HKD 58.5 billion, subject to certain conditions[96] Customer Experience and Non-Gaming Activities - MGM China is committed to enhancing customer experience and introducing more non-gaming activities in Macau[30] - The company aims to attract high-end customers through targeted positioning of luxury offerings such as "Yonghua Mansion" and "Yonghua No. 1" while maintaining focus on high-margin mid-tier gaming operations[101] - The company is focusing on enhancing customer experience through improved operational efficiency and diversified resort products, including innovative entertainment and art attractions[99] - MGM Resorts International's loyalty program, M Life Rewards, was developed under Hornbuckle's leadership, contributing to customer retention[38] Strategic Initiatives and Partnerships - MGM China aims to attract international and diverse visitors by hosting the MGM Macau Tennis Masters in collaboration with IMG, featuring top international tennis players[27] - The company has established a partnership with the Mandarin Oriental Hotel to provide additional rooms during peak demand periods[84] - The company continues to explore new strategies for market expansion and product development in the hospitality and gaming sectors[38] Leadership and Governance - William Joseph Hornbuckle has been the CEO and President of MGM Resorts International since July 29, 2020, overseeing global development and digital gaming strategies[38] - John M. McManus has served as the Chief Legal and Administrative Officer since September 2022, contributing to governance and compliance efforts[40] - The company’s independent directors bring diverse experience from various industries, enhancing governance and oversight[63][67] Financial Health and Debt Management - Cash and cash equivalents stood at HKD 4.230 billion, with available but undrawn unsecured credit facilities of HKD 11.450 billion[154] - Total borrowings as of December 31, 2023, amounted to HKD 24,098,731, a decrease from HKD 32,725,136 as of December 31, 2022[175] - The company has issued unsecured senior notes totaling USD 1.5 billion, with maturities in 2024, 2026, and 2027, to refinance existing debt and for general corporate purposes[176] - The company has established a leverage ratio not exceeding 4.5:1.0 and an interest coverage ratio of at least 2.5:1.0 as of each quarter-end starting from September 30, 2021[191] Challenges and Risks - The company faces challenges from factors such as economic slowdowns in mainland China, regulatory changes, and global trade tensions, which may impact visitor numbers and capital flows[106] - The company anticipates that ongoing legal proceedings related to gaming intermediaries will not have a significant impact on its financial performance or cash flows[171]

Financial Performance - Total revenue for MGM China Holdings Limited reached HKD 24,684,210 thousand in 2023, a significant increase from HKD 5,268,569 thousand in 2022, representing a growth of approximately 368%[2] - The company reported an adjusted EBITDA of HKD 7,235,246 thousand for 2023, compared to a loss of HKD 1,274,355 thousand in 2022, indicating a substantial recovery in operational performance[2] - Net profit attributable to shareholders was HKD 2,638,304 thousand in 2023, a turnaround from a loss of HKD 5,231,911 thousand in the previous year, marking a significant improvement[3] - Operating profit for the year was HKD 4,547,486 thousand, a recovery from an operating loss of HKD 3,609,542 thousand in 2022[5] - The company reported a significant increase in gaming revenue, reaching HKD 21,821,840 thousand in 2023, compared to HKD 4,438,995 thousand in 2022, reflecting a strong recovery in the gaming sector[2] - The group’s financial performance showed significant improvement following the relaxation of travel restrictions in Macau starting December 2022, leading to a substantial increase in visitor numbers[11] - Adjusted EBITDA for 2023 reached HKD 7,235,246, a significant recovery from a loss of HKD 1,274,355 in 2022[18] - Total operating revenue for 2023 was HKD 24,684,210, up from HKD 5,268,569 in 2022, representing a growth of approximately 368%[19] - The company reported a net profit attributable to shareholders of HKD 2,638,304 in 2023, compared to a loss of HKD 5,231,911 in 2022[25] - Basic earnings per share for 2023 were HKD 0.694, recovering from a loss of HKD 1.377 in 2022[25] Dividends and Shareholder Returns - The board declared a special dividend of HKD 0.104 per share, totaling approximately HKD 395,200 thousand, which represents about 15% of the net profit attributable to shareholders for the year[4] - The company plans to pay a final dividend of HKD 0.243 per share, amounting to approximately HKD 923,400 thousand, which constitutes about 35% of the net profit attributable to shareholders[4] Assets and Liabilities - Total assets decreased to HKD 29,181,304 thousand in 2023 from HKD 31,209,496 thousand in 2022, reflecting a reduction in cash and cash equivalents[6] - The company's total liabilities decreased to HKD 30,508,524 thousand in 2023 from HKD 35,205,917 thousand in 2022, indicating improved financial stability[9] - Cash and cash equivalents were HKD 4,231,986 thousand in 2023, down from HKD 6,706,591 thousand in 2022, highlighting a need for cash management strategies[6] - The group had a net current liability of HKD 5.1874 billion as of December 31, 2023, compared to a net current asset of HKD 4.9303 billion as of December 31, 2022, largely due to an unsecured senior note maturing on May 15, 2024[13] Gaming Operations - The group’s gaming license for MGM Cotai was granted for a period of 10 years from January 1, 2023, allowing the operation of a total of 750 gaming tables and 1,700 electronic gaming machines[12] - The mass market gaming segment accounted for 85% of the company's gaming revenue for the year ending December 31, 2023[68] - MGM's gaming operations are supported by a total of 950 slot machines and 351 gaming tables at the Macau MGM, which opened in December 2007[55] - As of December 31, 2023, the total floor area of the MGM Cotai is approximately 24,549 square meters, featuring 901 slot machines and 399 gaming tables[56] Visitor Trends and Market Conditions - The total number of inbound visitors to Macau increased by 394.9% compared to 2022, with total gaming revenue rising by 333.8% to HKD 177.7 billion for the year ending December 31, 2023[64] - The proportion of visitors from mainland China to Macau was approximately 67.5% in 2023, down from 70.9% in 2019, indicating a slight shift in visitor demographics[63] - The overall gaming market share increased from 9.5% in 2019 to 15.2% as of December 31, 2023, driven by additional gaming tables and a focus on the mid-to-high-end market[66] Operational Improvements - The company aims to enhance customer experience by improving product and service quality, increasing asset utilization, and maximizing operational efficiency across all business segments[61] - The company has enhanced its marketing efforts and brand recognition through various promotional activities and strategic alliances[71] - The company continues to focus on upgrading its facilities and enhancing customer experience in both gaming and non-gaming areas[71] Financial Obligations and Debt Management - The company believes it can meet its financial obligations due within the next twelve months based on its improved cash flow estimates and financial performance[13] - The company has extended the maturity date of its revolving credit facilities from May 15, 2024, to May 15, 2026[34] - The company has no secured debt or subordinated debt as of the announcement date[38] - The company’s total unsecured borrowings include HKD 21,374.339 million after deducting financing costs[34] Future Growth and Investments - The company has committed to invest MOP 19.7 billion (approximately HKD 19.1 billion) in gaming and non-gaming projects, with MOP 18 billion (approximately HKD 17.5 billion) allocated for non-gaming projects[31] - The company is exploring potential acquisitions to further strengthen its market position, with a budget of $200 million allocated for this purpose[149] - The company plans to expand its market presence in the U.S., targeting a 25% increase in revenue from this region over the next fiscal year[149] Corporate Governance and Compliance - The company has committed to maintaining high ethical standards and compliance with corporate governance codes as of December 31, 2023[135] - The company’s board of directors is composed of three independent non-executive directors and two non-executive directors, overseeing financial reporting and risk management[137]

Investment Rating - The report maintains a "Buy" rating for MGM China (2282 HK) [1] Core Views - MGM China's 4Q23 revenue and profits exceeded expectations, with total revenue reaching HKD 7 68 billion (134 9% of 4Q19 levels) and adjusted property EBITDA of HKD 2 19 billion (140 6% of 4Q19 levels) [2] - The company's gaming revenue recovery outpaced the industry, with mass market (including slots) gaming revenue reaching 163 1% of 4Q19 levels, leading the industry by 59 percentage points [3] - Non-gaming revenue recovered to 159 1% of 4Q19 levels, driven by successful events and concerts [3] - The report raises 2023-2025 revenue forecasts to HKD 24 2 billion, HKD 26 77 billion, and HKD 28 42 billion respectively, with adjusted property EBITDA forecasts of HKD 7 13 billion, HKD 8 13 billion, and HKD 8 76 billion [3] Financial Performance - 4Q23 gaming revenue reached HKD 8 5 billion, recovering to 125 1% of 2019 levels, with VIP and mass market (including slots) gaming revenue at 49 4% and 163 1% of 4Q19 levels respectively [3] - The company's market share increased to 16 3% in 4Q23 from 9 7% in 4Q19, maintaining a full-year 2023 market share of 15 1% despite new property openings by competitors [3] - MGM Macau and MGM Cotai achieved mass market table daily drop of 104 0% and 121 8% of 2019 levels respectively [3] Operational Highlights - The company's operational performance remained strong in early 2024, with January adjusted property EBITDA and market share exceeding October 2023 peak levels [3] - Chinese New Year period saw visitor numbers and gaming volumes significantly surpassing 2019 levels [3] - The company has successfully hosted concerts by international and local artists, boosting non-gaming revenue and driving foot traffic [3] Valuation - The report sets a target price of HKD 16 8, with current EV/adjusted property EBITDA multiples of 10 0x, 8 8x, and 8 1x for 2023-2025 [3] - The stock is trading at HKD 12 58, with a 52-week range of HKD 9 20-12 94 [4]