Group 1 - The core viewpoint of the report indicates that starting in 2026, MGM China will increase the royalty fee rate paid to its parent company, MGM International, to 3.5%, which is higher than the 1.5% charged by Wynn Macau and Sands China [1] - The report suggests that this increase in royalty fees will not impact MGM China's property EBITDA, but the adjusted EBITDA forecasts for 2026 and 2027 have been lowered by 6.3% to 6.7% [1] - The target price for MGM China has been reduced from HKD 22.6 to HKD 20.9, while maintaining an "outperform" rating [1] Group 2 - The report maintains an expected dividend payout ratio of 50%, with dividends projected at HKD 0.71 and HKD 0.81 for the respective years [1] - The industry prefers Galaxy Entertainment and MGM China due to their strong cash flow and balance sheets, which allow these companies to increase dividends at their discretion [1]

Core Viewpoint - MGM China (2282.HK) experienced a significant drop, with shares falling over 16% to HKD 13.05, marking a new low since June 2023 due to increased licensing fees to its parent company, MGM International [1] Company Summary - Morgan Stanley's report indicates that starting in 2026, the licensing fee paid by MGM China to MGM International will increase from 1.75% to 3.5% of monthly gross revenue [1] - The anticipated additional costs for MGM China are projected to reach HKD 1.2 billion annually, an increase of HKD 600 million compared to 2025 [1] - As a result of the fee hike, Morgan Stanley forecasts a 5% year-on-year decline in MGM China's EBITDA for 2026, with a contraction of 220 basis points in profit margins [1] Industry Summary - Despite the rising cost pressures from the licensing fee increase, Morgan Stanley maintains a constructive outlook on the Macau gaming sector, suggesting that the industry's fundamentals remain supportive [1]

Group 1 - The core point of the article is that starting next year, MGM China will increase the license fee paid to its parent company, MGM International, from 1.75% of monthly gross gaming revenue to 3.5% [1] - The new license fee for MGM China is expected to be HKD 1.2 billion next year, compared to HKD 600 million this year [1] - Morgan Stanley forecasts that MGM China's EBITDA may decline by 5% year-on-year next year, with a contraction in profit margin of 220 basis points [1] Group 2 - Despite the changes, Morgan Stanley maintains a constructive outlook on Macau gaming stocks [1]

Group 1 - MGM China (02282.HK) experienced a significant decline of over 10% in early trading, with a current drop of 10.85% to HKD 13.89 [1] - The trading volume reached HKD 224 million [1]

Group 1 - MGM China Holdings (02282) experienced a significant decline of over 10% in early trading, with a current drop of 10.85%, trading at HKD 13.89, and a transaction volume of HKD 224 million [1] - On December 23, MGM Resorts International announced a new long-term brand partnership agreement with MGM China, which will see the brand usage fee increase from 1.75% to 3.5% starting in 2026 [1] - Morgan Stanley's report indicates that the brand usage fee is expected to reach HKD 1.2 billion in 2026, a substantial increase from HKD 600 million in 2025 [1] Group 2 - The report forecasts a 7% decline in MGM China's EBITDA for 2026 compared to previous expectations, with a year-on-year decrease of 5%, and an EBITDA margin contraction of 220 basis points [1] - The proportion of brand usage fees relative to EBITDA is projected to rise to 15.2% [1]

Group 1 - MGM China Holdings (02282) experienced a significant decline of over 10%, trading down 10.85% at HKD 13.89, with a transaction volume of HKD 224 million [1] - On December 23, MGM Resorts International announced a new long-term brand partnership agreement with MGM China, which will see the brand usage fee increase from 1.75% to 3.5% starting in 2026 [1] - The report from Morgan Stanley predicts that the brand usage fee will reach HKD 1.2 billion in 2026, a substantial increase from HKD 600 million in 2025 [1] Group 2 - The forecast indicates that MGM China's EBITDA for 2026 will decline by 7% compared to previous expectations, with a year-on-year decrease of 5% [1] - The EBITDA margin is expected to narrow by 220 basis points, with the brand usage fee accounting for 15.2% of the company's EBITDA [1]

MGM CHINA HOLDINGS LIMITED 美 高 梅 中 國 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2282及債務股份代號：6028, 40634, 5036） 更新持續關連交易 長期品牌協議 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。 截至2026年12月31日止年度之年度上限 獨立財務顧問 茲提述美高梅中國控股有限公司（「本公司」）(i)日期為2022年12月8日的公告（「第三份重 續品牌協議公告」），內容有關本公司、MGM B&D Holdings、美高梅金殿超濠、美高 梅國際酒店集團、MRIH及NCE根據第三份重續品牌協議訂立的持續關連交易；及(ii) 日期為2024年8月16日的公告（「修訂年度上限公告」），內容有關上述訂約方訂立的修訂 協議，以修訂年度上限。 誠如第三份重續品牌協議公告所載，第三份重續品牌協議的期限將於2025年12月31日 屆滿。因此，本公司與各 ...

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 美 高 梅 中 國 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2282及債務股份代號：6028, 40634, 5036） 更新持續關連交易 茲提述本公司日期為(i)2022年12月8日的公告，內容有關重續本公司及╱或美高梅金殿 超濠與有關對手方根據第四份重續發展協議、第四份重續總服務協議及第六份BEH市 場推廣協議訂立的持續關連交易（「2022年持續關連交易重續公告」）；(ii)2023年3月31日 的公告，內容有關本公司與對手方根據國際市場推廣協議訂立的持續關連交易（「國際 市場推廣協議公告」）；及(iii)2025年9月11日的公告，內容有關訂立修訂協議以修訂第 四份重續總服務協議的持續關連交易的年度上限（「總服務修訂公告」，連同2022年持續 關連交易重續公告及國際市場推廣協議公告，統稱 ...

Group 1 - MGM China has announced the appointment of Mr. Feng Xiaofeng as the new Chief Executive Officer, effective from December 19, 2025 [1]

Group 1 - MGM China announced the appointment of Feng Xiaofeng as the new Chief Executive Officer, effective from December 19, 2025 [1]