MGM china equity , debt and subsidiaries

Accuracy score :
97%

MGM China Holdings Ltd

Summary (from latest quarterly  report – 2015)

  • Total equity  : 523 million USD
  • Market Cap is 5.23 billion USD ( last price of the stock is 10.68 HKD )
  • MGM China Holdings Ltd is engaged in the development and operation of casino games of chance and other casino games and the related hotel and resort facilities
  • Equity of total company decreased from 817 million USD in 2014 to 523 million in 2015
  • Company has 500 million USD in cash on account
  • Total equity – cash on account = 523 million usd – 500 million usd = 23 million usd
  • In 2015 company has 1.2 billion usd long-term debt, short – term debt was zero

In 2014 company had 531 million usd long-term debt, short-term debt was zero

  • MGM China Holdings balance sheet has become weaker in 2015 (In latest quarterly report - total equity decreased to 523 million USD from 817 in 2014, total debt was 1.2 billion usd in 2015)
  • Company's revenue decreased in latest annual report  to 3.28 billion usd from 3.31 billion in 2013
  • Net income in 2014 was 735 million usd, net income in 2013 was 688 million usd
  •  In 2014 company paid 760 million usd dividend to its shareholders

 

MGM China Holdings Ltd Subsidiaries

MGM China Holdings Ltd is engaged in the development and operation of casino games of chance and other casino games and the related hotel and resort facilities in Macau. MGM China Holdings Limited was incorporated in the Cayman Islands as an exempted company with limited liability on July 2, 2010. The Company’s Shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on June 3, 2011.

The MGM Grand Macau was opened on 18 December 2007 at a cost of US$1.25 billion. On 18 April 2011, an initial public offering was announced. Under the agreement, Pansy Ho would receive a 29 percent stake in the company, MGM China Holdings Ltd, which was created as a listing vehicle for the IPO. MGM Resorts would hold 51 percent and the public would receive 20 percent.

Casino revenue represents 98.7 % of total MGM China Holdings revenues.

MGM China Holdings subsidiaries:

  • Alpha Landmark,
  • Alpha Vision Investments Limited,
  • Apexworth
  • Breve S.A
  • Golden Rice Bowl Limited
  • Mingyi
  • MGM Grand Paradise
  • Prime Hotel Management
  • Terra C Sub
  • Yin Gao Limited

 

Subsidaries :  Alpha Landmark, Alpha Vision Investments Limited, Apexworth, Breve S.A, Golden Rice Bowl Limited, Mingyi, Prime Hotel Management, Terra C Sub, Yin Gao Limited -  worth 600 milliun usd

Subsidiary MGM Grand Paradise worth 4.5 billion usd, MGM Grand Paradise is directly owned by the Company. As part of the Group Reorganization, the shares of MGM Grand Paradise werevdivided into two classes of shares, Class A shares and Class B shares, with each share carrying one vote. The Company holds 100% of the Class A shares, which represent 80% of the voting power of the share capital of MGM Grand Paradise. Pansy Ho and MGM Resorts International Holdings, Ltd. each owns one half of the Class B shares (or 10% of the voting power of the share capital of MGM Grand Paradise each) in order to satisfy the requirements of the Sub-Concession Contract and local Macau regulations that at least 10% of MGM Grand Paradise’s issued share capital be held by a local managing director of MGM Grand Paradise.

 

Total = 5.1 billion usd

 

Opinion about the company

Most of the companies profits for MGM China is diverted to the two major shareholders,  Very little profits are left in the company. Fundamentally it is a good company  and in the future we can expect its growth in revenues but not in equity growth (Total debt is not small (1.2 billion usd), company has 500 million USD in cash on account,  ROE is around 55%).  

 

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