CLSA: MGM CHINA (02282) Q3 property EBITDA beats expectations; maintain "Outperform" rating with target price of HK$13.8

CLSA issued a research report maintaining its "Outperform" rating on MGM CHINA (02282) with a target price of HK$13.8. Benefiting from better-than-expected revenue market share, the company's Q3 property EBITDA rose 1% year-on-year to HK$2.394 billion, beating the median market expectation and the bank's forecast by 6% each. The bank estimates that the above-normal VIP room win rate contributed approximately HK$132 million to EBITDA. The bank noted that after MGM CHINA completed the acquisition of the mainland hotel management business, that business contributed revenue of HK$31 million and EBITDA of approximately HK$7 million in Q3. Overall property EBITDA margin narrowed by 1.1 percentage points year-on-year to 26.8% in Q3.