Ge Long Hui·2025-12-31 02:49Group 1 - The core viewpoint of the article is that MGM China will increase its brand licensing fee from 1.75% to 3% of monthly gross revenue starting January 2026, with a maximum duration of 20 years [1] - Despite the significant increase in licensing fees, this long-term agreement will mitigate the risk of further fee increases over the next 20 years [1] - As a result of the anticipated increase in licensing fees, Macquarie has reduced MGM China's EBITDA estimates for 2026 and 2027 by 5.1% and 4.8%, respectively [1] Group 2 - The target price for MGM China has been lowered from HKD 22.6 to HKD 21, while maintaining an "outperform" rating based on a projected EV/EBITDA multiple of 10 times for 2026 [1] - MGM China announced in March that it will increase its dividend payout ratio from 35% to at least 50%, which, under the 50% assumption, could result in a projected dividend yield of 5.4% for 2026 after stock price adjustments [1]