$MGM CHINA(02282.HK) dropped by seven to eight points, with trading volume expanding nearly threefold. Mid-year attributable profit fell 20.25% year-on-year to HKD 1.9 billion, while revenue actually grew 4.39% to HKD 17.39 billion, and a mid-year dividend of HKD 0.25 per share was also paid.
Goldman Sachs stated that Q2 met expectations, merely adjusting the 2026-2028 EBITDA forecast slightly, while Citigroup directly noted that property EBITDA exceeded expectations and total gaming revenue is recovering post-World Cup. With such consistent bullish sentiment from sell-side analysts, the stock price is being hammered along the line of declining profits—is it because dividends and EBITDA cannot support the valuation, or were the profit margins in this round of Macau's recovery eaten up by promotional expenses?
It seems more like this. Revenue is rising while profits are falling; the gap in between is typically customer acquisition costs.
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