Citi: Raise the target price of Wynn Macau (01128) to HK$6.25 to a “buy” rating

The Zhitong Finance App learned that Citibank released a research report saying that although the overall property EBITDA of Wynn Macau (01128) for the first quarter of this year was lower than expected, adjusted EBITDA reached US$290 million due to lucky factors, exceeding the bank's (US$269 million) and market (US$274 million) expectations. After incorporating the latest operating trends and profit margin forecasts, the bank raised the target price from HK$5.55 to HK$6.25, maintaining a “buy” rating. If estimated at a 60% dividend rate, Wynn Macau's dividend rate for the whole year is 5%, providing investors with a defensive option in the face of macroeconomic uncertainty and trade conflicts.

The Group's performance in April was steady. The number of codes transferred at VIP tables increased year-on-year, while the amount of bets at midfield casinos was similar to last year. During May 1st Golden Week, midfield betting amounts increased year on year, and hotel occupancy rates were almost full. The food court Gourmet Pavilion opened at the end of April, and management said it can add about 2,400 dining places every day. Although the food court will increase daily operating costs, management is expected to have a positive impact on EBITDA.