MGM CHINA(02282.HK)：SOLID 2Q25 RESULTS

Core Viewpoint - MGM China reported strong financial results for 2Q25, with net revenue and adjusted EBITDA reaching record levels, driven by increased market share and a focus on the high-end mass market segment [1][2]. Financial Performance - 2Q25 net revenue was HK$8.7 billion, representing a 9% year-over-year increase and an 8% quarter-over-quarter increase, setting a new single-quarter record [1]. - Adjusted EBITDA for the same period was HK$2.5 billion, up 3% year-over-year and 6% quarter-over-quarter, which is 72% higher than in 2019 [1]. - Total gross gaming revenue (GGR) increased by 12% year-over-year and quarter-over-quarter, with a 54% increase compared to 2Q19 levels [2]. Market Share and Growth Drivers - MGM China's market share in Q2 was 16.6%, marking the highest sequential gain among gaming companies, with monthly increases throughout the quarter [2]. - The strong gaming revenue was primarily driven by the high-end mass market, supported by concerts and an influx of customers seeking new experiences and quality products and services [2]. Future Projects - MGM Macau's Alpha Villas began trial operations in July, featuring 20 gaming tables, with an official opening planned before the National Day Golden Week [3]. - All 28 new villa suites at MGM Macau were available as of July, and a project to convert 63 standard rooms into suites at MGM Cotai is expected to open in 1Q26 [3]. Investment Outlook - The target price for MGM China has been raised from HK$15.5 to HK$19, indicating a 22% upside potential, and a Buy rating is maintained [1][3].