Wynn Macau Ltd on Thursday declared a final dividend of HK$0.185 per share, taking its total dividend payout for FY24 to HK$0.26 and comfortably above market forecasts.
The total payout, which implies a 43% payout ratio versus JP Morgan’s anticipated 25%, comes after the company reported profit attributable to owners of HK$3.20 billion (US$400 million) – up 173% year-on-year.
According to JP Morgan analysts DS Kim and Selina Li, the 4.6% yield is the second-highest level in Macau after MGM China.
In a note, the investment bank said, “Looking through Wynn’s FY24 annual report, we were also encouraged by the pace of de-leveraging last year, with net debt dropping by HK$8.90 billion (US$1.11 billion), to HK$32.8 billion (US$4.10 billion).
“This reduced its leverage ratio sharply from 6.3x in FY23 to 4.0x in FY24, which is not terribly far from the pre-COVID-19 level of ~3x. We wouldn’t be surprised if the company were to step up its payout to above 50%+ from this year, indicating meaningful upside risk to our/consensus dividend expectations.
“We stay Overweight on Wynn Macau, given its attractive valuation and best-in-class assets.”
Wynn reported operating revenues of HK$28.7 billion (US$3.59 billion) in 2024, up from HK$24.3 billion (US$3.04 billion), while Adjusted EBITDA grew by 24.0% to HK$8.21 billion (US$1.03 billion).
