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Jefferies: MGM CHINA (02282.HK) Licensing Fee Hike May Lead to 10% Drop in 2026 NP w/ Potential for Div. Policy Review
2025-12-31 10:36:28
MGM CHINA (02282.HK) finalized a new brand licensing agreement with its parent company, MGM Resorts International, with the term aligned with MGM CHINA's current gaming concession period, Jefferies published a research report saying.

The broker expected that, assuming other conditions remain unchanged, the increase in brand licensing fees will lead to a 6% decrease in MGM CHINA's 2026 adjusted EBITDA, while net profit is expected to drop by 10%.

Furthermore, if the Company maintains a 50% dividend payout ratio, its 2026/27 DPS will correspondingly decrease, suggesting potential room for reviewing the dividend policy. Therefore, Jefferies rated the Company at Buy, with a target price of $19.
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