Newsletter summary

Citi upgraded MGM China to "Buy"Mobilelegendscrashing2022The target price rises to HK $18.35 and is bullish on the smart gambling table.Mobilelegendscrashing2022Long-term market advantage.

Text of news flash

[Citi raised its target price for MGM China to HK $18.35, bullish on its smart gaming table advantage] in its latest research report, Citi gave MGM China (02282) a "buy" rating and raised its target price to HK $18.35 from HK $17. Citigroup believes that MGM China's positive changes in business trends and its EBITDA profit margin of 30.3%, exceeding the bank's previous forecast of 29.4%, have had a positive impact on the company. Citi pointed out that it was not surprising that MGM had another record quarter in China, but that the improvement in its EBITDA profit margin was a pleasant surprise. At the same time, the company's management said it would continue to work to maintain market share at about 15 per cent and to keep profit margins at a high level of about 20 per cent. Citi specifically mentioned that MGM China's early adoption of the advantage of smart tables will benefit it in the short term and help it gain more market share in the long run. This advantage is expected to show up for most of the year. Overall, Citi is optimistic about the future of MGM China and believes that its advantage in the early adoption of smart tables will lead to sustained market share growth.