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Wynn Macau Ltd. (HK:1128)
:1128

Wynn Macau (1128) AI Stock Analysis

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HK

Wynn Macau

(OTC:1128)

70Outperform
Wynn Macau shows promising recovery with strong revenue growth and bullish technical indicators. However, financial risks due to high leverage and historical volatility are significant considerations. Valuation is reasonable with a fair P/E ratio and dividend yield, supporting a moderate outlook.

Wynn Macau (1128) vs. S&P 500 (SPY)

Wynn Macau Business Overview & Revenue Model

Company DescriptionWynn Macau, Limited, together with its subsidiaries, develops, owns, and operates the Wynn Palace and Wynn Macau casino resorts in Macau. The company's Wynn Palace resort features approximately 424,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with a total of 1,706 guest rooms, suites, and villas; and 14 food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 252,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; two hotel towers with 1,010 rooms and suites; 12 food and beverage outlets; and recreation and leisure facilities, such as two health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 59,000 square feet of retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited is a subsidiary of WM Cayman Holdings Limited I.
How the Company Makes MoneyWynn Macau generates revenue primarily through its casino operations, which include table games and slot machines catering to both mass-market patrons and VIP customers. The company also earns significant income from its non-gaming amenities such as hotel rooms, food and beverage services, retail outlets, and entertainment offerings. A key aspect of its revenue model is the ability to attract high-net-worth individuals and gaming enthusiasts from across the globe, supported by strategic marketing and partnerships with junket operators who bring in VIP players. Additionally, the company benefits from its strong brand reputation and the ongoing growth of the tourism and gaming industry in Macau, contributing to its financial performance.

Wynn Macau Financial Statement Overview

Summary
Wynn Macau's financial performance shows signs of recovery with improved revenues and profit margins. However, the company is still burdened by high leverage and negative equity, posing financial risks. Cash flow generation is strong, but historical volatility and debt levels remain concerns for long-term stability.
Income Statement
72
Positive
Wynn Macau has shown significant revenue recovery with a growth of 18.42% from 2023 to 2024, indicating strong recovery post-pandemic. The company also improved its gross profit margin to 41.29% and net profit margin to 11.12% in 2024, reflecting enhanced efficiency. However, challenges remain, as historical performance has been volatile and impacted by external events.
Balance Sheet
45
Neutral
The balance sheet is concerning with a high debt-to-equity ratio due to negative equity, reflecting significant financial leverage and risk. The equity ratio is also negative, indicating that liabilities exceed assets. While there is improvement in total assets, financial stability issues remain due to high indebtedness.
Cash Flow
65
Positive
Wynn Macau's cash flow has improved with a positive free cash flow of 6.38 billion in 2024 and an operating cash flow to net income ratio above 2.4, indicating strong cash generation relative to net income. However, historical cash flow volatility and substantial debt obligations could impact future liquidity.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
28.74B24.27B5.64B11.73B7.61B
Gross Profit
11.62B9.45B-598.46M2.45B-309.18M
EBIT
5.33B3.70B-4.89B-2.55B-5.40B
EBITDA
8.81B6.70B-2.57B-200.30M-2.46B
Net Income Common Stockholders
3.20B1.17B-7.34B-5.18B-7.22B
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.33B15.75B7.42B11.66B18.83B
Total Assets
39.23B44.83B36.08B41.90B51.66B
Total Debt
44.98B52.83B48.40B46.75B49.47B
Net Debt
33.64B42.53B40.97B35.09B30.64B
Total Liabilities
52.52B60.64B53.23B51.92B56.71B
Stockholders Equity
-13.29B-15.81B-17.15B-10.02B-5.06B
Cash FlowFree Cash Flow
6.38B6.10B-2.47B-1.69B-4.46B
Operating Cash Flow
7.69B6.81B-2.12B-1.21B-3.71B
Investing Cash Flow
4.83B-5.41B-1.29B-453.91M-642.76M
Financing Cash Flow
-11.42B1.49B-860.42M-5.57B9.13B

Wynn Macau Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.56
Price Trends
50DMA
5.40
Positive
100DMA
5.42
Positive
200DMA
5.58
Negative
Market Momentum
MACD
0.08
Negative
RSI
58.81
Neutral
STOCH
84.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1128, the sentiment is Positive. The current price of 5.56 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.40, and below the 200-day MA of 5.58, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 84.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1128.

Wynn Macau Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$29.17B9.06
2.61%16.27%172.71%
61
Neutral
$7.00B11.553.07%3.89%2.60%-21.53%
58
Neutral
HK$98.80M12.675.22%3.95%1.74%-46.43%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1128
Wynn Macau
5.56
-2.48
-30.87%
MCHVF
MGM China Holdings
1.58
-0.32
-16.84%
SCHYF
Sands China
1.85
-0.83
-30.97%
HK:1443
Fulum Group Holdings Ltd.
0.07
-0.09
-56.25%

Wynn Macau Corporate Events

Wynn Macau Highlights Q1 2025 Results of Controlling Shareholder
May 7, 2025

Wynn Macau announced the unaudited financial results of its controlling shareholder, Wynn Resorts, Limited, for the first quarter ended March 31, 2025. The financial results, prepared under U.S. GAAP, include segmented information about Wynn Resorts’ Macau operations, which are owned by Wynn Macau. Shareholders and investors are advised that these results are not directly comparable to Wynn Macau’s financials prepared under IFRS, and there is no assurance that Wynn Macau’s results will align with those of Wynn Resorts.

Wynn Macau Highlights First Quarter Financial Results of Controlling Shareholder
May 7, 2025

Wynn Macau announced that its controlling shareholder, Wynn Resorts, Limited, has released its unaudited financial results for the first quarter of 2025. These results, prepared under U.S. GAAP, include financial information about Wynn Macau’s operations in Macau. However, due to differences in accounting standards, these results are not directly comparable to Wynn Macau’s own financial disclosures. The announcement ensures that shareholders and potential investors have equal access to this information, highlighting its potential impact on the company’s operations and market positioning.

Wynn Macau Grants Employee Ownership Awards to 424 Staff
May 2, 2025

Wynn Macau, Limited has announced the granting of awards under its Employee Ownership Scheme to 424 employees, allowing them to subscribe for a total of 424,000 ordinary shares. This initiative aims to align employee interests with the company and its shareholders, motivate participants to enhance company value, and recognize contributions to the company’s long-term growth. The awards are not subject to performance targets and will vest in two equal parts in 2028 and 2029. The company has ensured that none of the selected participants are directors or major shareholders, and the issuance of new shares will remain within the scheme mandate limit.

Wynn Macau Announces 2025 Annual General Meeting and Share Repurchase Mandate
Apr 17, 2025

Wynn Macau, Limited has announced its 2025 Annual General Meeting, scheduled for May 23, 2025, where key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to grant the board a mandate to repurchase up to 10% of the company’s shares, which could impact shareholder value and market perception.

Wynn Macau Announces Final Dividend for 2024
Apr 17, 2025

Wynn Macau, Limited has announced a final ordinary dividend of HKD 0.185 per share for the financial year ending December 31, 2024. Shareholders’ approval for this dividend is scheduled for May 23, 2025, with the payment date set for June 11, 2025. This announcement reflects the company’s continued financial performance and commitment to returning value to its shareholders.

Wynn Macau Grants Employee Awards to Boost Engagement
Mar 31, 2025

Wynn Macau, Limited has announced the grant of awards under its Employee Ownership Scheme to two employees, allowing them to subscribe to a total of 1,214,527 ordinary shares. This initiative aims to align employee interests with the company’s long-term growth and shareholder value, with vesting schedules and performance targets set for one of the participants. The scheme is designed to motivate and retain talent, contributing to the company’s operational and financial performance.

Wynn Macau Reports Strong 2024 Financial Results and Increased Dividend
Mar 27, 2025

Wynn Macau has announced its annual financial results for the year ending December 31, 2024, showcasing a significant increase in casino revenues and profits. The company reported a rise in casino revenues to HK$23.6 billion from HK$19.1 billion in the previous year, with profits attributable to owners increasing to HK$3.2 billion from HK$1.2 billion. The board has recommended a final dividend of HK$0.185 per share, pending shareholder approval, reflecting the company’s strong financial performance and commitment to returning value to its shareholders.

Wynn Macau Declares Final Dividend for 2024
Mar 27, 2025

Wynn Macau, Limited has announced a final cash dividend of HKD 0.185 per share for the financial year ending December 31, 2024. The ex-dividend date is set for May 27, 2025, with the payment date scheduled for June 11, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Wynn Macau Schedules Board Meeting to Review Annual Results
Mar 17, 2025

Wynn Macau, Limited has announced that its board of directors will hold a meeting on March 27, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. The meeting will also address the potential declaration or payment of a dividend and other business matters, which could have implications for the company’s financial strategy and shareholder returns.

Wynn Macau Highlights Annual Report of Controlling Shareholder
Feb 14, 2025

Wynn Macau, Limited announced that its controlling shareholder, Wynn Resorts, Limited, released its audited annual report for the fiscal year ending December 2024. The report, prepared in accordance with U.S. GAAP, includes financial information on Macau operations, which are owned by Wynn Macau. However, due to differences in accounting standards, the financial results may not be directly comparable to Wynn Macau’s own disclosures. Shareholders and potential investors are advised to consult professional advisers to understand these differences.

Wynn Macau Reports Unaudited 2024 Financial Results from Parent Company
Feb 14, 2025

Wynn Macau has announced that its controlling shareholder, Wynn Resorts, Limited, has released its unaudited financial results for the fourth quarter and year ended December 31, 2024. The results, prepared under U.S. GAAP, provide insights into Wynn’s Macau operations, though they are not directly comparable to Wynn Macau’s financials prepared under IFRS. Shareholders and investors are urged to consider the differences in accounting standards when interpreting these results.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.