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Wynn Macau Ltd 01128

Morningstar Rating
HKD 6.99 +0.08 (1.16%)
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Company Report

Macao Gaming: MGM China and Wynn Macau’s DPS a Positive Surprise, Lifting Investors' Confidence

Following Galaxy’s special interim and final dividend offerings, MGM China and Wynn Macau have followed suit and both declared final dividends on March 21. We view this as a positive surprise, which came in at least one year earlier than our expectations, suggesting that management groups are confident in Macao’s gaming demand recovery. We maintain our assumption that industry gross gaming revenue will rise to 85% of 2019’s level in 2024, up from 63% in 2023. With that, we believe Macao casinos will record meaningful improvements in profitability and cash flows in 2024. We also expect Sands China to resume its dividend program in 2024, while Melco Resorts and SJM will likely be later in 2025 given the still-stretched balance sheet for both companies.

Price vs Fair Value

01128 is trading at a 20% discount.
Price
HKD 7.05
Fair Value
HKD 3.60
Uncertainty
High
1-Star Price
HKD 56.62
5-Star Price
HKD 3.54
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Macao's gaming sector is well-positioned to benefit from China's reopening, which will allow the sector to restore its profitability meaningfully.

Bears

Wynn Macau will still face harsher license-renewal terms such as shorter license duration, requirement of nongaming investment, and a 1% increase in gaming tax.

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News

Trading Information

Previous Close Price
HKD 6.91
Day Range
HKD 6.857.09
52-Week Range
HKD 5.509.08
Bid/Ask
HKD 6.98 / HKD 6.99
Market Cap
HKD 36.63 Bil
Volume/Avg
5.0 Mil / 9.6 Mil

Key Statistics

Price/Earnings (Normalized)
52.66
Price/Sales
1.78
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Wynn Macau operates two integrated casino resorts in Macao, including Wynn Macau on the peninsula and Wynn Palace in Cotai. These properties feature with high-end hotels and brand-name stores, making Wynn a high-end iconic brand. Wynn Resorts has a 72% stake in Wynn Macau.
Sector
Consumer Cyclical
Industry
Resorts & Casinos
Stock Style Box
Large Growth
Total Number of Employees
15,174

Competitors

Valuation

Metric
01128
01928
02282
Price/Earnings (Normalized)
52.6631.8418.70
Price/Book Value
Price/Sales
1.783.492.02
Price/Cash Flow
6,325.7913.996.03
Price/Earnings
01128
01928
02282

Financial Strength

Metric
01128
01928
02282
Quick Ratio
2.581.210.44
Current Ratio
2.651.230.45
Interest Coverage
−0.392.39−0.25
Quick Ratio
01128
01928
02282

Profitability

Metric
01128
01928
02282
Return on Assets (Normalized)
−8.84%6.92%−6.51%
Return on Equity (Normalized)
Return on Invested Capital (Normalized)
−2.73%12.94%−1.53%
Return on Assets
01128
01928
02282
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Resorts & Casinos Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
LVS
Las Vegas Sands CorpQmmlpgrpvMtzqfq$39.0 Bil
SCHYF
Sands China Ltd Shs Unitary 144A/Reg SPsbyjvn$22.8 Bil
SCHYY
Sands China Ltd ADRVmwtsm$22.8 Bil
GXYYY
Galaxy Entertainment Group Ltd ADRDjnwrnp$22.0 Bil
GXYEF
Galaxy Entertainment Group LtdYtczdy$22.0 Bil
MGM
MGM Resorts InternationalDpwfpmdSsff$15.0 Bil
WYNN
Wynn Resorts LtdDxpkbhzxCllxw$11.5 Bil
CZR
Caesars Entertainment IncQcjrmzrtDfkp$9.5 Bil
MLCO
Melco Resorts and Entertainment Ltd ADRNbbpgswKszbhrf$3.2 Bil
PENN
PENN Entertainment IncRqxtcpywPfxy$2.8 Bil

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