CICC: Maintains "Outperform" rating and HK$11 target price on MGM CHINA (02282); high-end customer betting volume and visitation remain strong.

CICC issued a research report maintaining an "Outperform" rating and a target price of HK$11 on MGM CHINA (02282). The company's third-quarter net revenue was RMB8.926 billion, up 5% year-on-year and 3% quarter-on-quarter, reaching 155% of the same period in 2019; adjusted EBITDA was RMB2.395 billion, up 1% year-on-year and 3% quarter-on-quarter, also recovering to 155% of the same period in 2019, above the market forecast of RMB2.297 billion, mainly driven by an increase in gross gaming revenue market share and better profitability across business segments. The bank noted that the company's third-quarter market share reached 17.1% and further rose to 19.2% as of September, both hitting record highs. Despite overall industry weakness, the bank believes MGM CHINA's strong market share trend is likely to continue into October and the fourth quarter. CICC believes the premium mass segment will continue to be the main DRIVE of MGM CHINA's performance. Following the opening of the Supreme and slot high-limit areas at MGM Cotai, both betting levels and gaming duration among premium customers have increased. Contrary to industry trends, premium customer betting volume and visitation remain strong.