Huatai Securities downgraded WYNN MACAU's rating to "Buy," with a slight decrease in the target price to 6.7 yuan

AASTOCKS
2025.08.12 01:28

Huatai Securities published a report stating that Wynn Macau (01128.HK) parent company Wynn Resorts (WYNN.US) released its second-quarter financial report on August 7 in the Eastern U.S., showing weak performance in its Macau segment, which led to a 7.4% decline in Wynn Macau's stock last Friday (August 8). Gaming revenue remained flat year-on-year and quarter-on-quarter, while mass market gross revenue fell 3% quarter-on-quarter, and recovery outside of the mass market was weaker than the industry. VIP turnover decreased by 7% quarter-on-quarter, with a win rate of only 2.97%, compared to 3.54% in the same period last year. EBITDA profit declined year-on-year and quarter-on-quarter, indicating potential short-term profit pressure.

The report noted that management is optimistic about the future, stating that gaming revenue momentum improved in June and July, and plans to invest approximately $750 million from 2025 to 2026 to expand the Chairman's Club, renovate hotel rooms, and build a convention and entertainment center to enhance competitiveness in high-end and non-gaming sectors. Considering that the firm believes Wynn's mass market and high-end segments are both weak, reflecting bottlenecks in its customer attraction strategy and non-gaming layout, it downgraded Wynn Macau's rating to "Overweight." The target price was slightly reduced from HKD 6.8 to HKD 6.7

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