Wynn Macau Earnings: Robust Recovery Continues, Shares Remain Undervalued.

We maintain our fair value estimate of Wynn Macau at HKD 8.80 per share, following the firm’s decent fourth-quarter performance and a minor tweak to our earnings forecasts. The results came in slightly above our expectations, helped by higher win-rate and stronger sales growth at the firm’s peninsula property after a prolonged renovation closure. In addition, a favorable mix shift to higher-margin mass gaming and cost efficiencies also drove adjusted EBITDA margin 140 basis points higher from 2019’s level, to 32.6%. We expect the sales growth momentum to continue into the coming quarters, with rising airline capacity and various nongaming events across different casino properties to support visitor growth.