In an unexpected market reaction Today, Wynn Macau (OTC:WYNMF) Ltd saw its shares fall sharply by 14% to HK$6.02, despite reporting a substantial increase in third-quarter revenue and a dramatic reduction in net losses. The company's financial performance showed a significant improvement with a seven-fold jump in revenue and net losses narrowing to US$6.2 million from a previous US$242.0 million.
However, they maintained a positive outlook on Wynn Macau, keeping their buy recommendation but adjusting the target price to HK$9.65 from HK$10.30. Their optimism is supported by strong hotel occupancy rates of 98% in October and the casino's steady market share of over 13%.
Pianpian He from Huatai Securities noted Wynn Macau's strategic pivot from focusing on VIP customers to attracting more non-VIP guests to enhance non-gaming revenues. Despite these efforts, the casino's gross gaming revenue currently hovers at around 65% of pre-pandemic levels, which is below the industry average of 69%. This indicates that while there has been progress, there is still room for growth as the company continues its recovery trajectory.
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