1128 HK (Wynn Macau Ltd.)

Wynn Macau Ltd

Consumer


Presented:03/10/2014
Price:HK$37.90
Cap:$25.30B
Current Price:HK$6.25
Cap:$4.21B

Presented

Date03/10/2014
PriceHK$37.90
Market Cap$25.30B
Ent Value$24.79B
P/E Ratio12.88x
Book ValueHK$1.78
Div Yield5.82%
Shares O/S5,187.55M
Ave Daily Vol7,450,000
Short IntN/A

Current

PriceHK$6.25
Market Cap$4.21B
Wynn Macau, Limited, through its subsidiaries, owns and operates the Wynn Macau resort in Macau. The company’s resort features approximately 1,008 hotel rooms and suites; 495 table games; 835 slot machines; a poker pit in approximately 275,000 square feet of casino gaming space; casual and fine dining in 8 restaurants; 2 spas and a salon; lounges; and meeting facilities. Its resort also includes approximately 55,000 square feet of retail space featuring boutiques from Bvlgari, Cartier, Chanel, Dior, Dunhill, Ermenegildo Zegna, Ferrari, Giorgio Armani, Graff, Gucci, Hermes, Hugo Boss, Jaeger-LeCoultre, Louis Vuitton, Miu Miu, Piaget, Prada, Roger Dubuis, Rolex, Tiffany, Tudor, Vacheron Constantin, Van Cleef & Arpels, Versace, Vertu, and others, as well as a show in the rotunda. The company is based in Macau. Wynn Macau, Limited is a subsidiary of Wynn Group Asia, Inc.

Highlights

The opportunity for investors to benefit from Wynn Macau’s expansion remains present, but the Street and market continue to under-appreciate the potential future value of the Wynn Resorts subsidiary, said the presenter. At ~37 HKD, Wynn Macau shares reflect the value of the existing property, which opened in 2006. The construction of the company’s new resort on the Cotai Strip is fully funded and will likely be completed on time (within the next 18-24 months), he added. The stock is trading at a ~5% FCF yield and should continue to appreciate over the next year and a half until it more fully reflects the ownership of two premier resorts in the world’s largest gaming market.

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