SEHK:2282

Stock Analysis Report

Executive Summary

MGM China Holdings Limited, an investment holding company, engages in the development, ownership, and operation of gaming and lodging resorts in the Greater China region.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has MGM China Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

2282

-3.6%

HK Hospitality

-3.0%

HK Market


1 Year Return

-3.4%

2282

-5.0%

HK Hospitality

-8.6%

HK Market

2282 outperformed the Hospitality industry which returned -6.5% over the past year.

2282 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

2282IndustryMarket
7 Day-1.6%-3.6%-3.0%
30 Day7.7%1.4%1.1%
90 Day-2.5%1.0%-5.3%
1 Year-2.3%-3.4%-1.9%-5.0%-5.3%-8.6%
3 Year1.0%-2.6%27.1%15.4%15.3%3.6%
5 Year-37.6%-45.0%-6.4%-21.1%17.9%-1.7%

Price Volatility Vs. Market

How volatile is MGM China Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MGM China Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MGM China Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

MGM China Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

MGM China Holdings is overvalued based on earnings compared to the HK Hospitality industry average.

MGM China Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

MGM China Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

MGM China Holdings is overvalued based on assets compared to the HK Hospitality industry average.


Next Steps

Future Growth

How is MGM China Holdings expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MGM China Holdings's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

MGM China Holdings's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

MGM China Holdings's revenue growth is positive but not above the Hong Kong market average.

MGM China Holdings's earnings growth is expected to exceed the Hong Kong market average.

MGM China Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

MGM China Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has MGM China Holdings performed over the past 5 years?

-29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MGM China Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

MGM China Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MGM China Holdings's 1-year earnings growth is negative, it can't be compared to the HK Hospitality industry average.


Return on Equity

MGM China Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MGM China Holdings used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

MGM China Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MGM China Holdings's financial position?


Financial Position Analysis

MGM China Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

MGM China Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MGM China Holdings's level of debt (171.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (86.6% vs 171.4% today).

Debt is not well covered by operating cash flow (10.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is MGM China Holdings's current dividend yield, its reliability and sustainability?

2.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MGM China Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

MGM China Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

MGM China Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

MGM China Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of MGM China Holdings's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

What is the CEO of MGM China Holdings's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average board tenure


CEO

Grant Bowie (61yo)

0yrs

Tenure

HK$52,695,000

Compensation

Mr. Grant R. Bowie serves as the Chief Executive Officer of MGM Resorts China Holdings Limited. Mr. Bowie has been the President of MGM Grand Paradise Limited since August 1, 008. He serves as President of ...


CEO Compensation Analysis

Grant's remuneration is higher than average for companies of similar size in Hong Kong.

Grant's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

8.8yrs

Average Tenure

56.5yo

Average Age

The tenure for the MGM China Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jim Murren (57yo)

    Executive Co-Chairperson

    • Tenure: 0yrs
  • Bill Hornbuckle (61yo)

    Executive Director

    • Tenure: 9yrs
  • Grant Bowie (61yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$52.70m
  • Pansy Catilina Ho (56yo)

    Executive Co-Chairperson

    • Tenure: 0yrs
  • Hubert Wang (52yo)

    Senior VP of Finance & CFO

    • Tenure: 8.2yrs
  • Yau Chen (65yo)

    Executive Director

    • Tenure: 9yrs
  • Antonio Jose De Castro Dos Santos Menano (56yo)

    Company Secretary

    • Tenure: 0yrs
  • Michael Holubowskyj (53yo)

    Senior Vice President of Security & Safety

    • Tenure: 0yrs
  • Wendy Yu (51yo)

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Scott Wessel (47yo)

    Senior Vice President of Digital & Technology Solutions

    • Tenure: 6.7yrs

Board Members

  • Jim Murren (57yo)

    Executive Co-Chairperson

    • Tenure: 0yrs
  • Bill Hornbuckle (61yo)

    Executive Director

    • Tenure: 9yrs
  • Grant Bowie (61yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$52.70m
  • Pansy Catilina Ho (56yo)

    Executive Co-Chairperson

    • Tenure: 0yrs
  • Jim Freeman (50yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Sun Zhe (53yo)

    Independent Non-Executive Director

    • Tenure: 9yrs
    • Compensation: HK$706.00k
  • Yau Chen (65yo)

    Executive Director

    • Tenure: 9yrs
  • Patricia Lam (52yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: HK$706.00k
  • Russell Banham (65yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$1.02m
  • Kenneth Feng (48yo)

    Non-Executive Director

    • Tenure: 1.3yrs

Company Information

MGM China Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGM China Holdings Limited
  • Ticker: 2282
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$48.792b
  • Shares outstanding: 3.80b
  • Website: https://www.mgmchinaholdings.com

Number of Employees


Location

  • MGM China Holdings Limited
  • Edificio MGM Macau
  • Avenida Dr. Sun Yat Sen
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2282SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2011
MCHV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2011
M04DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2011
2282SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2011
2282SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2011
MCHV.YOTCPK (Pink Sheets LLC)UNSPONSOD ADRUSUSDMay 2012

Biography

MGM China Holdings Limited, an investment holding company, engages in the development, ownership, and operation of gaming and lodging resorts in the Greater China region. The company engages in the develop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 12:50
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.