Citi has issued a research report stating that WYNN MACAU (01128) indicated during its first-quarter earnings call that the group has maintained discipline in reinvesting in gaming patrons. This led to an improvement in property EBITDA margin from 28% in the fourth quarter of last year to 28.2% in the first quarter of this year. The firm also expressed approval for the group's newly announced capital expenditure project, "The Enclave." This new property, located near the east entrance of Wynn Palace, will feature 432 all-suite hotel rooms with a capital expenditure budget of USD 900 million to USD 950 million. Citi believes the new hotel will help WYNN MACAU maintain its long-term competitiveness. Management anticipates limited operational disruption from construction, as the new project is situated at the current bus entrance site. Consequently, Citi has raised its target price for WYNN MACAU from HK$7.55 to HK$7.7, maintaining its "Buy" rating.

The project is expected to commence in the second half of 2026, taking approximately 2.5 years to complete, and will not include any gaming operations. Management expects the project to generate an additional USD 150 million to USD 175 million in EBITDA once fully operational, implying a mid-teens return rate.

Citi noted that WYNN MACAU's first-quarter results were slightly below expectations, primarily due to a lower-than-normal win rate in the mass market segment at the Wynn Macau casino on the Macau Peninsula. During the period, property EBITDA at Wynn Palace increased by 26% year-on-year to USD 204 million, while property EBITDA at Wynn Macau decreased by 16% year-on-year to USD 76 million. Overall, the group's total gaming revenue for the first quarter grew by 15.3% year-on-year, with its market share increasing slightly by 0.2 percentage points quarter-on-quarter to 12.4%. Management also stated during the earnings call that gaming volume recorded year-on-year growth during the recent May Day Golden Week holiday. To reflect the first-quarter results and the latest operational trends, Citi has lowered its profit forecasts for WYNN MACAU for the 2026 to 2028 fiscal years by approximately 3% to 4%.