Zhi Tong Cai Jing·2026-01-09 06:56Core Viewpoint - MGM China Holdings Limited (02282) experienced a rebound of nearly 5%, with a current price of HKD 12.82 and a trading volume of HKD 110 million following the announcement of a new long-term brand cooperation agreement with MGM International Hotel Group [1] Group 1: Brand Cooperation Agreement - Starting from 2026, MGM China will increase the brand usage fee paid to its parent company from 1.75% to 3.5% [1] - Morgan Stanley projects that the brand usage fee will reach HKD 1.2 billion in 2026, a significant increase from HKD 600 million in 2025 [1] Group 2: Financial Impact - Goldman Sachs estimates that the additional royalty fees paid to the parent company will impact EBITDA by approximately 6% to 7% [1] - The earnings forecast for MGM China is expected to be downgraded by about 13% to 14% due to the increased fees [1] - If the company maintains a dividend payout ratio of around 50%, this may lead to a reduction in the dividend per share [1] Group 3: Stock Price Reaction - Following the announcement regarding the royalty fees, MGM China's stock price fell by approximately 19% [1] - Goldman Sachs believes that the recent stock price adjustment appears to be somewhat excessive [1]