Wynn Macau (1128.HK) 2Q26 results in line with GSe but above market expectations. Solid post World Cup recovery and resilien...

Equity Research 5 August 2026 | 8:49AM HKT

Wynn Macau (1128.HK) 2Q26 results in line with GSe but above market expectations. Solid post-World Cup recovery and resilient market share in July-Aug. Buy

1128.HK 12m Price Target: HK$8.10 Price: HK$5.66 Upside: 43.2% BUY Simon Cheung, CFA | Goldman Sachs (Asia) L.L.C.

Alpha Wang | Goldman Sachs (Asia) L.L.C.

As flagged in our preview note (Jul 14), Wynn Macau reported a Zhaoheng Chen | solid set of 2Q26 results as the only casino operator delivering Goldman Sachs (Asia) L.L.C.

sequential EBITDA growth so far. Property EBITDA came in at US$297mn, inline with our estimate (US$296mn GSe) and above Key Data _____________________________________ Market cap: HK$29.3bn / $3.7bn consensus (US$280-290mn). Adjusted for lower-than-normal Enterprise value: HK$67.7bn / $8.6bn VIP win rate of 2.92% (vs. 2.78% in 1Q26 and theoretical 3m ADTV: HK$47.3mn / $6.0mn Hong Kong 3.1-3.4%), it would have been US$306mn (+3% qoq or +15% Asia Leisure M&A Rank: 3 yoy), driven by solid mass-market GGR performance (+6% qoq Leases incl. in net debt & EV?: No vs. -4% for the industry) with a higher hold rate of 23.6% (vs. GS Forecast __________________________________ 21% in 1Q26), which we believe reflects not only hold factor but 12/25 12/26E 12/27E 12/28E Revenue (HK$ mn) New 29,000.5 32,231.5 33,932.1 35,793.4 also improved quality of plays as more high-end premium mass Revenue (HK$ mn) Old 29,000.5 32,391.3 34,071.6 35,987.1

players were attracted by its new amenities, busier event calendar EBITDA (HK$ mn) EPS (HK$) New 6,977.5 0.31 7,817.6 0.55 8,303.8 0.62 8,944.5 0.71 and a revamped loyalty program over the past 2-3 quarters. The EPS (HK$) Old P/E (X) results were also helped by lower promotional allowance of -6% P/B (X) NM NM NM NM qoq, representing 17.8% of GGR (vs. 21.9%/20% in 4Q25/1Q26), Dividend yield (%) 6.8 7.9 7.9 8.3 CROCI (%) suggesting a more stable competitive environment, in addition to mix shift with rolling volume -35% qoq. As the World Cup tended to 3/26 6/26 9/26E 12/26E EPS (HK$) have a bigger impact on the gambling behavior of high rollers, the GS Factor Profile ______________________________ pullback in its VIP volume was not surprising but appeared more Growth pronounced than the trend reported by other operators (Sands China -18%, MGM China -7%). Daily opex was maintained at Financial Returns

US$2.9mn, which management guided to be relatively stable for the Multiple

rest of this year. Net-net, its EBITDA margin improved +1.3pts qoq Integrated

to 29.6% in 2Q26 (or 25.3% on a gross basis). Percentile 20th 40th 60th 80th 100th

By property, after the sharp jump in 1Q26 helped by the 1128.HK relative to Asia ex. Japan Coverage newly-launched Chairman Club before the CNY holidays, Wynn 1128.HK relative to Asia Leisure

Palace posted a more stable hold-adjusted EBITDA of US$209mn in Source: Company data, Goldman Sachs Research estimates. 2Q26 (vs. US$210mn in 1Q26) with +8% sequential See disclosures for details. mass-market/slot GGR growth outperforming the adjacent casinos,

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Wynn Macau (1128.HK)

Wynn Macau (1128.HK) Income Statement (HK$ mn) ________________________________ BUY Rating since Jul 14, 2026 12/25 12/26E 12/27E 12/28E Total revenue 29,000.5 32,231.5 33,932.1 35,793.4 Cost of goods sold (20,537.3) (22,795.6) (23,936.9) (25,076.3) SG&A (1,274.3) (1,396.8) (1,458.4) (1,526.9) Ratios & Valuation __________________________________________ R&D -- -- -- -- 12/25 12/26E 12/27E 12/28E Other operating inc./(exp.) ( ) P/E (X) EBITDA 6,977.5 7,817.6 8,303.8 8,944.5 P/B (X) NM NM NM NM Depreciation & amortization (2,478.8) (2,480.0) (2,603.6) (2,723.9) FCF yield…