Citi: Raises target price for Sands China Ltd. (01128.HK) to HKD 7 and upgrades earnings forecast; Q2 performance exceeds expectations.

According to a report by Citibank, Wynn Macau (01128.HK) outperformed expectations in its second-quarter performance, with adjusted property EBITDA rising 17% year-on-year to $297 million, compared to the bank's forecast of $270 million and the market expectation of $280 million. Management also indicated that dividends are the cornerstone of their capital return policy. Citibank stated that assuming the fiscal year 2026 dividend per share remains at the annualized level of the second half of 2025, Wynn Macau's dividend yield is expected to reach approximately 7.9%, the highest in the industry. Considering the better-than-expected second-quarter performance, Citibank has raised its earnings forecasts for Wynn Macau by 4% to 15% for 2026 to 2028, with the target price increasing from HK$6.80 to HK$7.00, maintaining a "buy" rating.