Citigroup: Wynn Macau (01128) new project "The Enclave" expected to enhance competitiveness, raises target price to 7.7 Hong Kong dollars.

According to the Wise Finance APP, Citigroup released a research report stating that Wynn Macau (01128) revealed at its first quarter performance meeting that the group has maintained discipline in reinvesting in casino players, resulting in the property EBITDA profit margin improving from 28% in the fourth quarter of last year to 28.2% in the first quarter of this year. The bank also likes the new capital expenditure project "The Enclave" announced by the group. The project is a new property with 432 suites near the east entrance of Wynn Palace, with a budget of 900 million to 950 million US dollars in capital expenditure. They believe that the new hotel will help Wynn Macau maintain long-term competitiveness. Management expects limited operational disturbance during construction as the new project is located at the current bus entrance. Citigroup has accordingly raised Wynn Macau's target price from HK$7.55 to HK$7.70, maintaining a "buy" rating.