Group 1 - UBS reports that MGM China (02282) management participated in the 2026 UBS Greater China Conference (GCC) and expects the industry’s average daily gross gaming revenue (GGR) to grow in the mid-single digits by 2026, driven by strong demand in the high-end market [1] - UBS sets a 12-month target price of HKD 18.5 for MGM China and maintains a "Buy" rating [1] - MGM China plans property upgrades, including converting 160 rooms into 60 suites in Cotai, and launching a new high-end mid-market area in the first half of 2026, increasing the total number of suites from 290 to 350 [1] Group 2 - The company expects its market share to remain between 15% and 17% this year, with an EBITDA margin projected to stay in the mid-20% range [1] - Operating expenses (opex) are anticipated to align with revenue growth [1] - Recent organizational changes have streamlined the management structure, which will help accelerate decision-making processes in the future [1] - The company is also considering increasing the dividend payout ratio to offset the impact on earnings per share [1]

Core Viewpoint - UBS reports that MGM China (02282) expects a mid-single-digit growth in daily gross gaming revenue (GGR) by 2026, driven by strong performance in the high-end market [1] Group 1: Company Outlook - MGM China plans to upgrade its properties, including converting 160 rooms into 60 suites in Cotai, and launching a new high-end mid-market area in the first half of 2026 [1] - After the upgrades, the total number of suites will increase from 290 to 350 [1] - The company anticipates maintaining a market share of 15% to 17% this year [1] Group 2: Financial Projections - MGM China expects its EBITDA profit margin to remain at a high level in the mid-20% range [1] - Operating expenses (opex) are projected to grow in line with revenue [1] - The management is considering increasing the dividend payout ratio to offset the impact on earnings per share [1]