Ge Long Hui·2025-12-30 03:12Group 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]