Wynn Macau (1128) First Take: 2Q26 - Solid beat

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

05 August 2026

Wynn Macau (1128)

First Take: 2Q26 - Solid beat

Overweight

1128.HK, 1128 HK

Price (04 Aug 26):HK$5.66

Price Target (Dec-26):HK$6.50

Our First Take: Wynn’s 2Q was solid and ahead of expectations, with EBITDA

up +15% y/y (VIP-hold adjusted) — a clear outperformance vs. peers’ average -3%

decline. While mass hold at Wynn Palace was clearly favorable (30%, vs. usual

23-25% range), we do not think this was just a hold-driven quarter: stable OPEX

& reinvestment, mass share gain, and continued strength in execution all point to

a more sustainable asset-led edge. At over 7% dividend yield (we expect DPS to

stay flat) and 8-9x EV/EBITDA, we believe valuation still underappreciates

Wynn’s best-in-class asset quality; we stay OW.

Co-Head of Asia Pacific Consumer

Research and Head of Asia Gaming/

Leisure Research

DS Kim AC

Key Positives

EBITDA beat — not just hold, but quality showing through. Wynn’s

EBITDA (VIP-luck adjusted) grew +3% q/q and +15% y/y to $306m, the

highest level in over two years and ~9% above consensus/JPMe of $280m. Yes,

Wynn Palace benefited from exceptionally high mass hold (30%, vs. usual 2325% range), but this was not a “hold-only” beat in our view. OPEX remained

very stable (2.9m/day, sequentially flat for 3 Qs), reinvestment improved

(albeit helped by mass hold), and mass share rose. Taken together, the quarter

again points to Wynn’s best-in-class asset quality as a sustainable edge in this

ever-competitive market.

Market share gains. Wynn’s headline market share increased +120bps q/q to

13.7% (the highest in >2 years), led by a +130bps gain in mass/slot share to

14.1% (vs. 12-13% over the past two years). We think this reflects a

combination of high hold and the ongoing ramp from the Chairman’s Club

expansion (opened in 1Q26), reinforcing Wynn’s ability to defend and gain

share at the premium end of the market.

Update on Wynn Palace expansion. As unveiled last quarter, Wynn plans to

open Wynn Enclave, an all-suite expansion w/ 432 keys (boosting its room/

suite counts by ~25%/~50%), in 2029E, with a reasonable US$900-950m

capex ($2.1-2.2m per key).…