In "The Big Banks," Citigroup expects investors to pay attention to whether MGM China will increase its dividend payout ratio

Citi published a report stating that investors' next focus on MGM China (02282.HK) will be the dividend payout ratio, specifically whether there are signs that the annual payout ratio will increase from 50% to offset the impact of higher franchise and brand usage fees. The bank believes this expected threshold is not high. Furthermore, regardless of the new franchise and brand fee allocation mechanism, the company has already distributed two special dividends in 2024, while some peers are also showing an expanding payout ratio.

Citi noted that MGM China's current price corresponds to an enterprise value multiple of 7.1 times for 2026, maintaining an "Outperform" rating and a target price of HKD 20.9. The stock is one of Citi's preferred picks alongside Galaxy Entertainment (00027.HK)