Zhi Tong Cai Jing·2025-12-29 02:54Group 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]