MGM China Holdings Limited

SEHK:2282 Stock Report

Market Cap: HK$37.1b

MGM China Holdings Valuation

Is 2282 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2282 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2282 (HK$9.71) is trading below our estimate of fair value (HK$14.27)

Significantly Below Fair Value: 2282 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2282?

Key metric: As 2282 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2282. This is calculated by dividing 2282's market cap by their current earnings.
What is 2282's PE Ratio?
PE Ratio8.2x
EarningsHK$4.50b
Market CapHK$37.13b

Price to Earnings Ratio vs Peers

How does 2282's PE Ratio compare to its peers?

The above table shows the PE ratio for 2282 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
1128 Wynn Macau
10.8x13.0%HK$28.9b
1928 Sands China
21x19.2%HK$172.4b
27 Galaxy Entertainment Group
18x15.6%HK$149.9b
3918 NagaCorp
17.8x42.4%HK$13.0b
2282 MGM China Holdings
8.2x4.9%HK$36.9b

Price-To-Earnings vs Peers: 2282 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

How does 2282's PE Ratio compare vs other companies in the HK Hospitality Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1383 LET Group Holdings
1.3xn/aUS$38.09m
1655 Okura Holdings
0.7xn/aUS$9.26m
8052 Luk Hing Entertainment Group Holdings
1.3xn/aUS$2.61m
8475 E-Station Green Technology Group
0.5xn/aUS$2.37m
2282 8.2xIndustry Avg. 16.8xNo. of Companies6PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2282 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Hong Kong Hospitality industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is 2282's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2282 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: 2282 is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2282 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$9.71
HK$14.75
+51.9%
15.9%HK$19.20HK$11.50n/a15
Dec ’25HK$9.76
HK$15.32
+57.0%
13.7%HK$19.20HK$11.90n/a15
Nov ’25HK$10.40
HK$15.90
+52.9%
10.3%HK$19.20HK$12.50n/a14
Oct ’25HK$12.40
HK$16.73
+34.9%
11.5%HK$19.20HK$12.50n/a13
Sep ’25HK$10.50
HK$16.93
+61.3%
10.4%HK$19.20HK$12.50n/a14
Aug ’25HK$11.86
HK$16.95
+42.9%
9.7%HK$18.90HK$12.50n/a14
Jul ’25HK$12.16
HK$17.55
+44.3%
11.6%HK$19.80HK$11.80n/a14
Jun ’25HK$13.90
HK$17.02
+22.4%
13.0%HK$19.80HK$11.80n/a15
May ’25HK$13.28
HK$16.06
+20.9%
12.5%HK$18.80HK$11.80n/a15
Apr ’25HK$13.08
HK$15.16
+15.9%
10.1%HK$18.00HK$11.80n/a16
Mar ’25HK$12.16
HK$14.93
+22.8%
10.6%HK$18.00HK$11.80n/a16
Feb ’25HK$10.26
HK$13.93
+35.8%
13.1%HK$18.00HK$10.20n/a15
Jan ’25HK$9.91
HK$13.76
+38.9%
13.6%HK$18.00HK$10.20n/a15
Dec ’24HK$8.64
HK$13.85
+60.3%
13.6%HK$18.00HK$10.20HK$9.7614
Nov ’24HK$9.54
HK$13.95
+46.2%
16.9%HK$18.00HK$9.80HK$10.4013
Oct ’24HK$10.24
HK$13.94
+36.2%
17.0%HK$18.00HK$9.80HK$12.4013
Sep ’24HK$9.84
HK$14.08
+43.1%
20.2%HK$19.00HK$9.40HK$10.5015
Aug ’24HK$10.44
HK$13.21
+26.6%
25.8%HK$19.00HK$5.80HK$11.8616
Jul ’24HK$9.14
HK$13.35
+46.1%
25.0%HK$19.00HK$5.80HK$12.1616
Jun ’24HK$8.33
HK$13.07
+56.9%
22.4%HK$17.96HK$5.80HK$13.9017
May ’24HK$10.66
HK$12.69
+19.0%
23.9%HK$17.96HK$5.80HK$13.2816
Apr ’24HK$9.70
HK$11.75
+21.1%
21.2%HK$14.68HK$5.80HK$13.0815
Mar ’24HK$10.22
HK$11.16
+9.1%
25.4%HK$14.68HK$4.80HK$12.1616
Feb ’24HK$10.34
HK$9.34
-9.6%
34.3%HK$13.60HK$4.60HK$10.2616
Jan ’24HK$8.60
HK$5.75
-33.1%
25.9%HK$9.65HK$3.60HK$9.9116
Dec ’23HK$5.80
HK$5.31
-8.5%
19.7%HK$7.50HK$3.60HK$8.6416

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 17:13
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

MGM China Holdings Limited is covered by 42 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Phoebe TseBarclays
D. S. KimBNP Paribas Securities (Asia)
Edwin FanBOCI Research Ltd.