CLSA: Maintains MGM CHINA (02282) "Outperform" rating and HK$13.8 target price; Q3 property EBITDA 6% above expectations

CLSA issued a research report maintaining MGM CHINA (02282) "Outperform" rating and HK$13.8 target price. The company's Q3 property EBITDA rose 1% year-on-year to RMB2.394 billion, 6% above market and the bank's forecasts. The bank believes results were driven by above-normal VIP win rate, contributing approximately RMB132 million in additional EBITDA; mass win rate held steady at 27.7% quarter-on-quarter. The bank noted that MGM CHINA's Q3 gaming revenue market share was 17.1%, above the bank's forecast of 16.8%, rising further to 19.2% in September. Overall property EBITDA margin narrowed 1.1 percentage points year-on-year to 26.8%, in line with the company's target of high-20% range; excluding VIP win rate factors, normalized EBITDA margin was 25.7%. The newly acquired mainland hotel management business also contributed slightly positive EBITDA.