Hong Kong
Transfer Coverage
21 December 2012
Wynn Macau
Sell (new)
Unrivalled Luxury, Unappealing Value
Share price:
Target price:
HKD 21.15
HKD 18.30 (new)
VIP and premium slots dwindling. Wynn Macau (WM) reported a
12.1% YoY drop in VIP turnover and 13.2% in slot handle in 3Q12, hit
by intensifying competition in Cotai and an industry-wide slowdown in
the VIP segment. Despite a 6.8% YoY increase in VIP rolling chip
volume in November, we believe the decline will continue. On a luckadjusted basis, the optimism over junket volume recovery should be
taken with a pinch of salt as Nov 2012 experienced a higher win rate of
3.35% vs 3.11% in Nov 2011.
Jeremy TAN
jeremytan@kimeng.com.hk
(852) 2268 0635
Edward FUNG
edwardfung@kimeng.com.hk
(852) 2268 0632
Stock Information
Description: Wynn Macau operates two luxury hotel towers
featuring 1,008 spacious rooms and suites, in addition to a
casino, casual and fine dining restaurants, retail space as
well as other leisure amenities.
Ticker:
Shares Issued (m):
Market Cap (USDm):
3-mth Avg Daily Turnover (USDm):
HSI:
Free Float (%):
1128 HK
5,187.6
14,391
16.3
22,660
28
Major Shareholders:
Wynn Resorts Limited
(%)
72
Market share under pressure. Overall market share slid to 12.0% in
2012F from 13.8% in 2011A. We forecast another 1ppt slide in 2013
and 2014. We expect revenue and EBITDA growth in 2013 to lag
industry growth by 2.5% and 4.5% on average as its premium product
does not allow it to fully capitalise on Macau’s mass market growth.
Playing catch-up in Cotai. The budget for Wynn Cotai is high at
USD3.5-4.0b, against its peers’. We expect the project to be completed
in 1H16, after Galaxy Entertainment and Melco Crown wrap up their
expansion in Cotai. But the influx of supply by competing operators
between 2015 and 2017 does not bode well for late entrants seeking to
ramp up their projects in a crowded market.
Dividend may take a hit. We believe that Wynn’s Cotai investment
could hinder the sustainability of its dividend payout in FY13. We
forecast free cash flow yield of 4% in 2013 and 1% in 2014 as free cash
flow dips in tandem with the pick-up in investment during these two
years. As casino investments are typically back-loaded, we expect
dividend yield (2011A: 7.3%) to wane nearer the project’s completion.
New contrarian SELL, TP of HKD18.30. Despite WM’s reputation as
the premium ultra-luxury destination of choice, its fundamentals and
valuation point to risks on the downside. The stock trades at rich
valuations of 17.0x FY13F PER and 13.3x FY13F EV/EBITDA vis-à-vis
players similarly focused on the VIP segment. We transfer coverage to
Jeremy Tan from Yin Shao Yang.
Historical Chart
35.0
30.0
25.0
20.0
Wynn Macau – Summary Earnings Table
15.0
10.0
Dec 11
Feb 12
Apr 12
PRICE
Jun 12
Aug 12
Oct 12
Dec 12
PRICE REL. TO HANG SENG INDEX
Source: Bloomberg
Performance:
52-week High/Low
Absolute (%)
Relative (%)
1-mth
(6.6)
(10.6)
HKD25.5/HKD14.62
3-mth
13.0
0.5
6-mth
9.0
(7.4)
1-yr
5.3
(12.3)
YTD
4.9
(13.4)
FYE Dec (HKDm)
Revenue
EBITDA
Recurring Net Profit
Recurring Basic EPS (HKD)
EPS Growth (%)
DPS (HKD)
PER (x)
EV/EBITDA (x)
Div Yield (%)
P/BV (x)
Net Gearing (%)
ROE (%)
ROA (%)
Consensus Net Profit (HKDm)
Source: Company, Maybank KE
2011A
29,498.1
7,951.3
5,921.0
1.3
48.1
1.2
2012F
29,841.0
7,779.6
6,315.2
1.2
(5.3)
1.1
2013F
31,611.5
8,209.3
6,489.8
1.3
2.8
0.9
2014F
34,705.7
9,168.9
7,140.5
1.4
10.0
0.6
15.2
12.7
7.3
25.1
17.5
13.9
5.6
23.6
17.0
13.3
4.1
16.7
15.4
12.2
2.6
10.1
(8.8)
160.1
42.0
-
(39.8)
145.3
37.5
6,621.9
(13.2)
115.2
29.6
7,307.5
12.5
81.6
24.0
8,170.4
SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Wynn Macau Limited
First sign of crackdown on corruption. Recent media reports that people from
three of Macau’s biggest junket operators were detained were the first sign, since
China’s leadership transition in November, that the government is taking action to
rein in corruption that has hogged the headlines this year. The junket business
plays a crucial role in Macau as 70% of the territory’s gaming revenue is derived
from the VIP segment. Should political risk intensify, it could threaten the junket
business as well as deter VIP customers from coming. Arguably the media
exaggerated the news, and we expect December is on track to beat estimates
and could post a record breaking set of gross gaming revenue (GGR) number,
translating to a growth of about 17% YoY. That said, the government’s move to
curb corruption underscores our preference for operators that are less dependent
on VIP gaming revenue and have lower exposure to Cotai. In our sector report,
“Winning Formula: Cotai’s Mass Market Wave”, dated 28 Nov 12, we forecast
that industry growth will continue in 2013 by way of a 25% growth in the mass
market segment and conservatively, zero growth in the VIP segment.
Figure 1: Macau – annual gross gaming revenue
(HKDm)
400,000
VIP
Mass
Slots
350,000
(%)
70
GGR YoY (RHS)
60
57.8
300,000
50
46.6
250,000
42.7
200,000
40
31.0
150,000
30
23.0
100,000
20
12.5
9.7
50,000
7.5
9.6
0
10
0
2005
2006
2007
2008
2009
2010
2011
2012E 2013E 2014E
Source: The Macau Gaming Inspection and Coordination Bureau (DICJ), Maybank KE
VIP turnover in structural decline. The slowdown in VIP turnover will be a
structural trend in FY13, in our view. While the VIP rolling chip volume rose by
6.8% YoY in November, on a luck-adjusted basis, the win rate of 3.35% in Nov
2012 was higher than that recorded in Nov 2011 at 3.11%. We caution that
optimism over VIP junket turnover recovery should be taken with a pinch of salt.
In our analysis, we found that gross gaming revenue (GGR) bears a strong
correlation with liquidity, tourist visitations and China’s nominal GDP growth. A
meaningful proxy for liquidity is China’s money supply (M1 and M2) growth.
Unless money supply begins a significant upward trajectory through a resurgence
of monetary stimulus by the Beijing government, such as in 2008, we keep our
industry outlook for a stable 7.5% GGR growth for 2013 intact.
Figure 2: China’s M1 and M2 growth vs gross gaming revenue growth (%)
China M1 growth YoY
GGR growth YoY 3 mths backward (RHS)
China M2 growth YoY
40
100
35
80
30
60
25
20
40
15
20
10
0
5
0
Jan-06
-20
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Source: DICJ, Bloomberg, Maybank KE
21 December 2012
Page 2 of 16
Wynn Macau Limited
VIP concentration highest in industry. Among the six casino operators in
Macau, Wynn Macau (WM) has replaced Galaxy as the operator with the highest
concentration of VIP revenue in its gaming mix. Throughout 2012, VIP revenue
has consistently accounted for 76% of WM’s gaming mix, making the company
highly vulnerable to the slowdown in VIP volume seen in the first three quarters of
the year. While EBITDA contributions from the less profitable VIP segment is
notably lower than from the mass market, WM’s VIP-focused property and
strategy could hinder it from taking full advantage of the growth in the mass
market, which remains Macau’s next revenue driver.
Figure 3: Wynn Macau – 2012 forecast revenue mix (%)
Slots
7.5%
Poker
0.4%
Rooms
0.5%
Mass
19.9%
Food and beverage
0.7%
Retail and other
5.1%
VIP
66.0%
Source: Bloomberg, Maybank KE
Figure 4: Wynn Macau – gaming mix (%)
(%)
1Q11
75
VIP
Mass market
18
Slots
7
Source: Company, Maybank KE
2Q11
78
16
6
3Q11
78
17
5
4Q11
77
18
5
1Q12
75
19
6
2Q12
76
19
6
3Q12
76
19
5
Market share loss. Market share for WM fell by 2ppts between 1Q11 and 3Q12
as its VIP growth slipped into negative territory while other operators with new
large-scale integrated resort openings benefited from the increase in mass
market growth in Cotai. Going forward, we expect VIP-dominated peninsular
operators to continue to lose market share to operators with greater exposure to
Cotai’s mass market growth as the former lack the capacity to capitalize from the
Macau’s next growth driver. Furthermore, as WM’s junket commissions is the
lowest in the industry, at 40% of net win, we believe this could motivate junket
agents to bring clients to other casino properties. We forecast WM’s market share
to fall 1ppt each in 2013 and 2014.
Figure 5: Gross gaming revenue market share forecasts (%)
100%
Sands China
10.9%
10.7%
Galaxy
9.6%
Wynn Macau
10.4%
SJM
Melco Crown
MGM
10.0%
9.6%
9.4%
9.5%
9.0%
8.5%
13.2%
13.0%
13.0%
13.0%
80%
14.4%
14.8%
15.1%
13.8%
13.4%
12.6%
60%
31.2%
28.6%
27.2%
28.0%
27.4%
26.8%
27.2%
25.0%
24.0%
32.8%
13.2%
12.2%
11.8%
12.1%
12.0%
11.0%
10.0%
13.2%
18.8%
21.2%
19.4%
20.1%
21.0%
22.0%
20.5%
40%
20%
14.2%
14.7%
11.0%
12.9%
19.8%
16.7%
15.6%
13.6%
14.9%
17.6%
17.3%
19.1%
18.1%
21.0%
22.5%
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
12F
13F
14F
0%
Source: Company, Maybank KE
21 December 2012
Page 3 of 16
Wynn Macau Limited
Figure 6: Macau – gross gaming revenue growth (%)
VIP GGR YoY
Figure 7: Wynn Macau – VIP rolling turnover and growth
Mass GGR YoY
VIP Rolling Turnover
110
VIP Rolling Turnover Growth
MOPm
90
%
85,000
70
50
35
20
75,000
30
5
10
65,000
(10)
(10)
(30)
Mar-06
Sep-07
Mar-09
Sep-10
Mar-12
55,000
Jan 12
Mar 12
May 12
Jul 12
Sept 12
Nov 12
(25)
Source: DICJ, Maybank KE
Source: DICJ, Maybank KE
Figure 8: Wynn Macau – monthly market share (%)
Figure 9: Wynn Macau – mass market vs VIP revenue market
share (%)
Market Share
Mass Market Share
VIP Rolling Market Share
19%
VIP Market Share
20%
17%
15%
15%
13%
10%
11%
9%
Jan 11
May 11
Sep 11
Source: Company, Maybank KE
Jan 12
May 12
Sept 12
5%
Jan 11
Apr 11
Jul 11
Oct 11
Jan 12
Apr 12
Jul 12
Oct 12
Source: Company, Maybank KE
Wynn Cotai to play catch-up. As the reclaimed land granted to WM is next to
the sea, additional soil foundation work needs to be done before piling and
construction can take place. We anticipate the construction of Wynn Cotai to be
completed by the first half of 2016 and it would house 2,000 hotel suites, in
addition to convention halls, retail space and entertainment and food and
beverage outlets. However, we are unable to ascertain the number of tables the
government would eventually grant the project when it is completed. Based on
the government’s stance to limit table growth to 3% pa from 5,500 tables in 1Q13,
we expect an ample supply of 2,000 tables over the next 10 years for each of the
six operators’ new development in Cotai. That said, late entrants to Cotai would
likely be met with stiff competition as all six operators will boost overall supply of
gaming tables and hotel inventory from 2015. This convergence of new supply
does not bode well for property ramp-up by latecomers if the gaming pie fails to
grow in tandem with supply.
Figure 10: Map of Cotai
Figure 11: Construction of Wynn Cotai
Source: SCMP
Source: Flickr
21 December 2012
Page 4 of 16
Wynn Macau Limited
Earnings forecasts
Growth to lag peers. We estimate WM’s net profit to grow by 6.7% YoY in 2012
and 2.8% YoY in 2013, driven by mass market growth as VIP turnover
consolidates in 2013. Consequently, we expect EBITDA growth of -2.2% in 2012
and 5.5% in 2013. Top and bottom-line growth will likely fall behind peers’ by
2.5% and 9.0%, respectively, in 2013 as its premium product is not positioned to
capitalise on the growing mass market segment in Cotai. Nevertheless, we
expect EBITDA margins to hold steady at around 26% in 2013 as revenue mix
shifts towards the more profitable mass market revenue streams.
Figure 12: Wynn Macau – annual EBITDA trends
(MOPm)
40,000
EBITDA
Operating revenues
(%)
100
EBITDA Growth (RHS)
81.2
80
30,000
60
20,000
40
35.3
11.7
5.5
(2.2)
10,000
20
0
0
-20
2010
2011
2012F
2013F
2014F
Source: Company, Maybank KE
Dividend yield to fall. While parent company, Wynn Resorts (WYNN US, Not
Rated) has increase special dividends to USD8.0/share this year from
USD5.0/share (in light of the higher possible capital gains tax increase in US) and
could double quarterly dividends in 2013 to USD1.0/share, we do not think Wynn
Macau could follow suit with higher dividends. Given the scale of the budget
(USD3.5-4.0b) for Wynn Cotai, we expect free cash flow to decline progressively
during the investment phase of the project in 2013-2015. WM’s net cash would
also dwindle substantially from 2012 and forecasted to turn net debt HKD1.3b by
2014F. This will put in question the sustainability of its dividend payout as we
forecast free cash flow yield of 4% in 2013 and 1% in 2014. In our view, dividend
yields will be under pressure in 2013 and 2014, coming in at 4% and 3%,
respectively, compared to 7.3% in 2011A and 5.7% in 2012F.
Figure 13: Wynn Macau – free cash flow vs yield
Free cash flow
Figure 14: Wynn Macau – net debt/(cash) vs gearing
Free cash flow yield (RHS)
10,000
10%
8%
8,000
7%
8%
7%
6,000
6%
4%
4,000
2,000
0
2%
0%
2011
Source: Company, Maybank KE
21 December 2012
2012
2013F
Net Debt / (Cash)
%
30
Net Gearing
15
1,500
0
0
(15)
4%
1%
2010
HKDm
3,000
2014F
-1,500
(30)
(45)
-3,000
2010
2011
2012F
2013F
2014F
Source: Company, Maybank KE
Page 5 of 16
Wynn Macau Limited
Financial assumptions
Central to our estimates is the assumption that WM’s gaming concession will
terminate on 26 Jun 2022 as scheduled and will be subject to extension by the
government. We also assume no contributions from Wynn Cotai until construction
is completed in the first half of 2016. WM’s quarterly market share of Macau GGR
has declined from 14.2% to 12.1% between 1Q11 and 3Q12 (Table 5). We
continue to assume that it will lose market share to other operators who are
better positioned to capitalise on Cotai’s mass market growth. We forecast a
market share of 12% for 2012 and 11% for 2013.
21 December 2012

VIP turnover growth and win rate. For 2012 and 2013, we assume VIP
turnover growth of 0% (2011: +35.2% YoY) as per our 2013 industry VIP
GGR growth forecast of 0% as elaborated on page 2. With respect to the VIP
win rate, we assume the theoretical average of 2.85% (2008-2011 average:
3.0%).

Mass market drop growth and win rate. For 2012 and 2013, we assume
mass market turnover growth of 15% (2011: +18.4% YoY). With respect to
the mass market win rate, we assume the theoretical average of 26.0%
(2008-2011 average: 23.4%).

Slot machine handle turnover growth and win rate. For 2012 and 2013,
we assume slot handle turnover growth of 25% (2011: +28.6% YoY) as per
our 2013 industry mass market growth forecast of 25% as elaborated on
page 2. We also assume a slot machine win rate of 5.0% (2008-2011
average: 5.1%).

Junket commission rate. Going forward, we assume an average junket
commission rate of 1.1% of VIP turnover. Since its opening, WM’s average
junket commission rate has remained stable at 1.1%.This translates into an
average VIP junket rate of 40% of net win, which is the lowest in Macau’s
gaming industry.

Tax rates. WM’s gaming tax is set at 39% of GGR (35% gaming tax, 1.6%
contribution to a Macau public foundation and 2.4% contribution to the Macau
government) for the entire duration of its gaming concession. It is exempted
from paying complimentary tax set at 12% of gaming pretax profit until 2015.
The exemption is subject to further extension by the government.

Dividends. Although WM paid a DPS of HKD0.76 in 2010 and HKD1.20 in
2011, it does not have a formal dividend policy nor does it provide guidance
on dividend payout ratio (DPR). Going forward, however, we assume that
WM may need to reduce dividends as it needs to conserve cash to develop
Wynn Cotai, which has an estimated budget of USD3.5-4.0b. We forecast
dividend payout ratios of 90% for 2012 and 70% for 2013, which would
translate into corresponding yields of 5.7% and 4.5%.
Page 6 of 16
Wynn Macau Limited
Valuation
We use sum-of-the-parts methodology to value WM’s core business segments.
We apply EV/EBITDA as the main metric, given that it is a common valuation for
industries characterised by continual and heavy capital expenditure, similar to the
gaming industry of Macau in its growth stage. We have assigned an industry
average valuation of 11.0x FY13F EV/EBITDA in the light of an overall slowdown
in VIP growth and the fact that being on the Macau peninsular, WM has become
a late mover on Cotai’s mass market growth. We add Wynn Cotai to our valuation
on a capitalised cost basis, given the uncertain industry growth outlook upon the
project’s expected completion in mid-2016.
Figure 15: Sum-of-the-parts valuation for Wynn Macau
EBITDA
(HKD m)
8,209.3
(99.6)
Wynn Macau
Other expenses
EV/EBITDA
(x)
11.0
11.0
EV
(HKD m)
90,302.4
(1,095.8)
Add:
Net cash / (Debt)
Available for Sale Investments
Wynn Cotai (Capitalized Cost)
Target Price (HKD)
Source: Maybank KE
Figure 16: Price-to-earnings (x)
1128 HK Equity
Mean
Value/sh
(HKD)
Comment
17.4 FY13 EBITDA
(0.2)
872.5
508.8
4,462.5
0.2
0.1
0.9
95,050.4
18.3
Figure 17: EV/EBITDA (x)
+1 SD
-1 SD
1128 HK Equity
Mean
+1 SD
-1 SD
20
26
18
21
16
14
16
12
10
11
8
6
Jan 10
Jul 10
Jan 11
Jul 11
Jan 12
6
Jan 10
Jul 12
Source: Bloomberg, Maybank KE
Jul 10
Jan 11
Jul 11
Jan 12
Jul 12
Source: Bloomberg, Maybank KE
Figure 18: Industry average EV/EBITDA (x)
16
15
14
13
12
11
10
9
8
7
6
Jan 10
Average EV / EBITDA
Jul 10
Jan 11
Mean
Jul 11
+1 SD
Jan 12
-1 SD
Jul 12
Source: Bloomberg, Maybank KE
21 December 2012
Page 7 of 16
Wynn Macau Limited
Relative valuation
A comparison of the valuations of Wynn Macau with those of MGM China, Galaxy
Entertainment and SJM, ie, players with similar VIP concentration in their gaming
mix profile, shows that WM is trading at a slight premium at 15x FY13F PER and
13x FY13F EV/EBITDA. At its peak in 2011, the stock has traded at 17x
EV/EBITDA but has since fallen to trade around the mean of 13x FY13F
EV/EBITDA. While, ROE is the highest in the industry we think this is due to the
fact that WM completed its casino (inclusive of Encore) at a lower cost of
USD1.65b, between 2006 and 2010 and should moderate after the investment
phase of Wynn Cotai. We believe a further de-rating to narrow the premium with
its comparable VIP-dependent peers is warranted.
Figure 19: Consensus relative valuation comparison
Name
Macau
Galaxy Entertainment
Melco Crown
MGM China
Sands China
SJM Holdings
Wynn Macau
Region Average
Ticker
27 HK
6883 HK
2282 HK
1928 HK
880 HK
1128 HK
PE
12Y
17.0
22.9
11.8
28.6
15.0
17.0
19.0
13Y
15.2
18.8
11.5
19.9
13.5
15.4
16.1
21.3
17.6
20.9
21.1
18.8
18.2
United States
Caesars Entertainment Corp.
Las Vegas Sands Corp.
MGM Resorts International
Wynn Resorts Ltd.
Region Average
CZR US
LVS US
MGM US
WYNN US
Asean
Alliance Global Group Inc.
Belle Corp.
Bloomberry Resorts Corporation
GentingBhd
Genting Malaysia Bhd
Genting Hong Kong Ltd.
Genting Singapore PLC
NagaCorp Ltd.
Region Average
AGI PM
BEL PM
BLOOM PM
GENT MK
GENM MK
GENHK SP
GENS SP
3918 HK
14.9
88.0
Pacific
Aristocrat Leisure Ltd.
Crown Ltd.
Echo Investment S.A.
SkyCityEntertainment Group
TABCorp Holdings Ltd.
Tatts Group Ltd.
Region Average
MSCI Index
MSCI Asia ex Japan
MSCI China
MSCI Hong Kong
MSCI Consumer Discretionary
MSCI Asia ex Japan
MSCI China
MSCI Hong Kong
Source: Bloomberg, FactSet
21 December 2012
EV/EBITDA
12Y
12.9
11.2
9.5
20.0
10.6
14.0
13.1
13Y
11.2
9.8
8.9
15.3
9.5
12.8
11.4
ROE
12Y
38.2
12.2
86.8
21.5
35.3
129.1
57.0
13Y
30.8
13.1
65.4
29.4
34.8
102.3
48.8
EPS Growth
12Y
139.4
(58.4)
37.8
9.9
22.9
11.8
21.9
13Y
12.0
21.6
1.9
43.9
10.8
10.3
16.0
10.7
12.9
10.7
10.1
11.1
10.0
10.8
9.6
9.1
9.9
(200.0)
17.6
(5.8)
53.7
(33.6)
(337.3)
19.5
(3.1)
62.4
(64.6)
8.0
(41.7)
(2.6)
(12.1)
30.4
21.2
19.1
11.5
20.5
11.6
57.0
14.0
13.1
18.6
25.2
11.5
26.5
12.8
67.9
41.5
13.9
11.9
14.0
21.9
9.3
24.1
5.9
7.5
21.6
11.4
9.0
17.7
9.9
35.3
22.9
5.2
6.7
16.2
9.8
6.9
14.1
12.3
2.9
(9.8)
13.6
12.3
8.1
9.8
29.5
9.8
13.1
4.8
20.8
11.7
12.5
10.3
9.9
33.2
14.5
(24.9)
134.8
n.m
(15.6)
7.9
(21.7)
(35.7)
22.7
9.6
16.8
29.6
437.0
0.5
9.9
33.3
14.8
24.1
70.7
ALL AU
CWN AU
EGP AU
SKC NZ
TAH AU
TTS AU
19.5
17.9
21.9
14.7
6.2
12.5
15.4
16.5
16.6
21.5
14.3
14.8
19.0
17.1
11.3
12.8
10.0
8.5
4.6
7.9
9.2
9.6
11.8
8.8
8.3
6.9
10.6
9.3
30.3
12.6
4.3
17.8
25.7
12.1
17.1
34.0
12.6
4.6
17.6
10.4
8.1
14.6
27.2
57.6
(57.6)
6.2
148.7
(1.9)
30.0
18.2
(11.5)
21.8
5.0
(57.6)
(25.6)
(8.3)
MXASJ
MXCN
MXHK
13.1
10.9
16.5
11.5
9.8
15.3
8.7
7.0
16.0
7.5
5.9
14.2
12.4
14.7
8.2
12.8
14.7
8.4
4.7
(0.4)
(11.8)
13.8
11.0
8.3
Index
MXASJCD
MXCN0CD
MXHK0CD
11.3
16.4
19.5
10.0
13.2
16.1
8.1
6.8
14.0
7.3
5.9
12.1
17.8
14.5
19.1
17.4
15.7
20.9
14.9
(13.7)
19.6
13.2
24.2
21.0
Page 8 of 16
Wynn Macau Limited
Company background
Wynn Macau is the 12th casino to open in Macau since Sociedade de Turismo e
Diversões de Macau’s (STDM) monopoly ended in December 2001. Wynn
Macau opened on 6 September 2006 at the centre of the Macau peninsula. In
December 2007 and November 2009, it added gaming space and new food and
beverage and retail amenities. On 21 April 2010, WM expanded and opened a
second hotel tower, Encore.
Wynn Macau features:

265,000 sq ft of gaming space

Two luxury hotel towers with a total of 1,008 rooms and suites

54,200 sq ft of high-end, brand-name retail shopping

Casual and fine dining in eight restaurants

Two health clubs and spas, a salon and a pool

Lounges and meeting facilities
WM is a 72%-owned subsidiary of Wynn Resorts Limited (WRL) (WYNN US, Not
Rated). WRL was founded by Mr Stephen A. Wynn who also serves as WM’s
Executive Director, Chairman of the Board, Chief Executive Officer and
President. Mr Wynn is well-regarded for the design, development and operation
of Wynn Las Vegas, Encore, Bellagio, Mirage and Treasure Island, which are all
recognised as premier destination resorts in Las Vegas.
In June 2002, WM was granted a 20-year casino concession by the Macau
government. The concession terminates on 26 Jun 2022 but may be extended for
a maximum of five years. WM was also granted the right to grant a
subconcession to another company, subject to government approval. In
September 2006, Melco Crown paid WM USD900m (HKD7b) for its
subconcession.
In July 2004, WM signed a land concession contract with the Macau government
for 16 acres of land on which WM currently sits. Under the concession, WM
leases the land for an initial period of 25 years until August 2029, with a right to
renew with government approval for additional periods terminating no later than
19 December 2049. In addition, there is annual rent of MOP3.2m (HKD3.1m).
Source: Company, Various
Chart 20: Wynn Macau
Chart 21: Encore
Source: Company
Source: Company
21 December 2012
Page 9 of 16
Wynn Macau Limited
Figure 22: Wynn Macau – SWOT analysis
Strengths
Weaknesses
 Premium gaming product offering
 Strong bargaining power on commission rates
 Not positioned for mass market growth
 High investment cost on a premium product
Opportunities
Threats
 Wynn Cotai expansion
 Policy restrictions
 GGR slowdown
Source: Maybank KE
Figure 23: Selected board members and management
Mr. Stephen A. Wynn
Mr. Stephen A. Wynn, aged 70, has been a director of the company since its inception and an
executive director, the chairman of the Board of Directors, chief executive officer and president of the
company since 16 September 2009. Mr. Wynn has served as Director, Chairman and Chief Executive
Officer of WRM since October 2001. Mr. Wynn has also served as Chairman and Chief Executive
Officer of Wynn Resorts, Limited since June 2002. Mr. Wynn has over 40 years of experience in the
gaming casino industry.
Ms. Linda Chen
Ms. Linda Chen, aged 45, has been an executive director and the chief operating officer of the
company since 16 September 2009 and chief operating officer of WRM since June 2002. Ms. Chenis
responsible for the marketing and strategic development of WRM. Ms. Chen is also a director of
Wynn Resorts, Limited and President of WIML. In these positions, she is responsible for the setup of
international marketing operations of Wynn Resorts, Limited. Prior to joining the Group, Ms. Chen was
Executive Vice President — International Marketing at MGM Mirage, a role she held from June 2000
until May 2002, and was responsible for the international marketing operations for MGM Grand,
Bellagio and The Mirage. Prior to this position, Ms. Chen served as the Executive Vice President of
International Marketing for Bellagio and was involved with its opening in 1998. She was also involved
in the opening of the MGM Grand in 1993 and The Mirage in 1989.
Mr. Ian Michael Coughlan
Mr. Ian Michael Coughlan, aged 53, has been an executive Director of the Company since 16
September 2009. Mr. Coughlan is also the President of WRM, a position he has held since July 2007.
In this role, he is responsible for the entire operation and development of Wynn Macau. Prior to this
role, Mr. Coughlan was Director of Hotel Operations — Worldwide for Wynn Resorts, Limited. Mr.
Coughlan has over 30 years of hospitality experience with leading hotels across Asia, Europe and the
United States. Before joining Wynn Resorts, Limited, he spent ten years with The Peninsula Group,
including posts as General Manager of The Peninsula Hong Kong from September 2004 to January
2007, and General Manager of The Peninsula Bangkok from September 1999 to August 2004. His
previous assignments include senior management positions at The Oriental Singapore, and a number
of Ritz-Carlton properties in the United States.
Mr. Robert Alexander Gansmo
Mr. Robert Alexander Gansmo, aged 42, is the Senior Vice President — Chief Financial Officer of
WRM, a position he has held since April 2009. Prior to taking this position, Mr. Gansmo was the
Director — Finance of WRM, a position he assumed in January 2007. Mr. Gansmo is responsible for
the management and administration of WRM’s finance division. Before joining WRM, Mr. Gansmo
worked at Wynn Resorts, Limited, where he served as the Director of Financial Reporting from
November 2002. Prior to joining the Group, Mr. Gansmo practiced as a certified public accountant
with firms in Las Vegas, Washington and California, including KPMG Peat Marwick, Arthur Andersen,
and Deloitte and Touche.
Source: Company
21 December 2012
Page 10 of 16
Wynn Macau Limited
Appendix 1: Wynn Cotai
The Wynn Cotai land concession contract
On 1 August 2008, WM entered into an agreement with its former Cotai partner to pay the latter for its
relinquishment of certain rights with respect to its business interests in a potential Cotai project (Wynn
Cotai). WM will pay its former Cotai partner USD50m (HKD389m) within 15 days after the Macau
government publishes WM’s rights to the Cotai land in the Macau government’s official gazette.
On 9 September 2011, WM announced that it formally accepted the terms and conditions of a land
concession contract from the Macau government in respect of approximately 51 acres of the Cotai
land. The concession permits WM to develop a resort containing a five-star hotel, gaming areas,
retail, entertainment, food and beverage, spa and convention offerings.
WM will lease the Cotai land for an initial term of 25 years from the date the concession is published
in the Macau government’s official gazette with a right to renew, with government approval, for
additional periods. The total land premium payable is MOP1.5b (HKD1.5b).
It comprised a down payment of MOP500m (HKD485.4m) and eight additional semi-annual payments
of MOP130.9m (HKD127.1m), which includes 5% interest. The first of the eight semi-annual
payments is due six months from the date the concession is published in the Macau government’s
official gazette.
In addition, there is an annual rent of MOP6.2m (HKD6m) during development and MOP8.6m
(HKD8.4m) once development is completed. The annual rent may be reviewed by the Macau
government every five years. WM has been allocated 60 months from the date the concession is
published in the Macau government’s official gazette to complete development.
Source: Company
21 December 2012
Page 11 of 16
Wynn Macau Limited
INCOME STATEMENT
FYE Dec (HKDm)
Revenue
EBITDA
Depreciation &Amortisation
Operating Profit (EBIT)
Interest (Exp)/Inc
Associates
One-offs
Pre-Tax Profit
Tax
Minority Interest
Net Profit
Recurring Net Profit
Revenue Growth %
EBITDA Growth (%)
EBIT Growth (%)
Net Profit Growth (%)
Recurring Net Profit Growth (%)
Tax Rate %
2011A
2012F
2013F
2014F
29,498.1
7,951.3
(1,016.4)
5,982.3
(210.3)
122.3
5,894.2
26.8
5,921.0
6,664.6
29,841.0
7,779.6
(1,137.7)
6,552.3
(155.4)
0.0
6,396.9
(81.7)
6,315.2
6,315.2
31,611.5
8,209.3
(1,189.8)
6,919.9
(344.3)
0.0
6,575.5
(85.7)
6,489.8
6,489.8
34,705.7
9,168.9
(1,244.5)
7,811.9
(578.8)
0.0
7,233.0
(92.6)
7,140.5
7,140.5
31.5
35.3
27.4
1.2
(2.2)
9.5
5.9
5.5
5.6
9.8
11.7
12.9
33.9
48.1
12.0
6.7
(5.2)
12.0
2.8
2.8
12.0
10.0
10.0
12.0
2011A
2012F
2013F
2014F
5,894.2
1,016.4
210.3
1,608.5
(15.5)
703.2
9,417.2
(923.5)
(629.9)
47.9
(1,505.5)
(186.8)
0.5
(6,225.1)
(196.3)
0.0
(6,607.5)
1,304.1
6,396.9
1,137.7
155.4
(15.1)
15.9
0.0
7,690.8
(350.0)
0.0
54.0
(296.0)
(1,733.5)
0.0
(5,682.2)
(209.4)
0.0
(7,625.0)
(230.2)
6,575.5
1,189.8
344.3
72.6
(80.2)
0.0
8,102.1
(4,200.0)
0.0
59.4
(4,140.6)
9,040.0
0.0
(4,541.7)
(403.7)
0.0
4,094.6
8,056.0
7,233.0
1,244.5
578.8
279.5
(83.1)
0.0
9,252.8
(8,050.0)
0.0
65.3
(7,984.7)
0.0
0.0
(2,855.4)
(644.1)
0.0
(3,499.6)
(2,231.5)
CASH FLOW
FYE Dec (HKDm)
Profit before taxation
Depreciation
Net interest receipts/(payments)
Working capital change
Cash tax paid
Others (incl'd exceptional items)
Cash flow from operations
Capex
Disposal/(purchase)
Others
Cash flow from investing
Debt raised/(repaid)
Equity raised/(repaid)
Dividends (paid)
Interest payments
Others
Cash flow from financing
Change in cash
BALANCE SHEET
FYE Dec (HKDm)
2011A
2012F
2013F
2014F
Fixed Assets
Other LT Assets
Cash/ST Investments
Other Current Assets
Total Assets
9,969.3
1,088.8
5,156.7
1,145.1
17,359.9
9,181.6
1,088.8
4,926.5
1,158.1
16,355.0
12,191.7
1,088.8
12,982.5
1,214.3
27,477.4
18,997.2
1,088.8
10,751.1
1,310.8
32,147.9
ST Debt
Other Current Liabilities
LT Debt
Other LT Liabilities
Minority Interest
Shareholders' Equity
Total Liabilities-Capital
2,302.7
7,022.7
2,500.8
1,505.3
0.0
4,028.4
17,359.9
1,110.0
7,406.8
1,960.0
1,216.8
0.0
4,661.4
16,355.0
1,110.0
7,829.7
11,000.0
928.2
0.0
6,609.6
27,477.4
1,110.0
8,503.7
11,000.0
639.6
0.0
10,894.6
32,147.9
101,157.2
4,803.5
(353.3)
(3,023.6)
110,235.4
3,070.0
(1,856.5)
(2,432.2)
110,235.4
12,110.0
(872.5)
5,257.2
110,235.4
12,110.0
1,358.9
2,448.1
2011A
2012F
2013F
2014F
27.0
20.3
26.1
22.0
26.0
21.9
26.4
22.5
20.1
160.1
42.0
22.6
1.1
31.7
1.7
3.6
9.3
17.8
3.0
Net Cash
0.6
0.0
21.2
145.3
37.5
21.2
1.1
40.6
1.8
5.3
9.3
17.8
3.0
Net Cash
0.4
0.0
20.5
115.2
29.6
20.5
1.4
18.8
1.2
2.3
9.3
17.8
3.0
Net Cash
1.5
0.1
20.6
81.6
24.0
20.6
2.5
12.3
1.1
2.7
9.3
17.8
3.0
12.5
1.3
0.1
2011A
2012F
2013F
2014F
1.3
1.7
0.8
5.7
1.5
1.2
1.2
1.4
0.9
5.8
1.5
1.1
1.3
0.8
1.3
6.1
1.6
0.9
1.4
0.2
2.1
6.7
1.8
0.6
Share Capital (m)
Gross Debt/(Cash)
Net Debt/(Cash)
Working Capital
RATES & RATIOS
FYE Dec
EBITDA Margin %
Op. Profit Margin %
Net Profit Margin %
ROE %
ROA %
Net Margin Ex. El %
Dividend Cover (x)
Interest Cover (x)
Asset Turnover (x)
Asset/Debt (x)
Debtors Turn (days)
Creditors Turn (days)
Inventory Turn (days)
Net Gearing %
Debt/ EBITDA (x)
Debt/ Market Cap (x)
PER SHARE DATA
FYE Dec (HKD)
EPS
CFPS
BVPS
SPS
EBITDA/share
DPS
Source: Company data, Maybank KE
21 December 2012
Page 12 of 16
Wynn Macau Limited
RESEARCH OFFICES
REGIONAL
P K BASU
Regional Head, Research & Economics
(65) 6432 1821 pk.basu@maybank-ke.com.sg
WONG Chew Hann, CA
Acting Regional Head of Institutional Research
(603) 2297 8686 wchewh@maybank-ib.com
ONG Seng Yeow
Regional Products & Planning
(852) 2268 0644 ongsengyeow@maybank-ke.com.sg
ECONOMICS
Suhaimi ILIAS
Chief Economist
 Singapore | Malaysia
(603) 2297 8682 suhaimi_ilias@maybank-ib.com
Luz LORENZO
Economist
 Philippines | Indonesia
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com
MALAYSIA
WONG Chew Hann, CA Head of Research
(603) 2297 8686 wchewh@maybank-ib.com
 Strategy
 Construction & Infrastructure
Desmond CH’NG, ACA
(603) 2297 8680 desmond.chng@maybank-ib.com
 Banking - Regional
LIAW Thong Jung
(603) 2297 8688 tjliaw@maybank-ib.com
 Oil & Gas
 Automotive
 Shipping
ONG Chee Ting, CA
(603) 2297 8678 ct.ong@maybank-ib.com
 Plantations
Mohshin AZIZ
(603) 2297 8692 mohshin.aziz@maybank-ib.com
 Aviation
 Petrochem
 Power
YIN Shao Yang, CPA
(603) 2297 8916 samuel.y@maybank-ib.com
 Gaming – Regional
 Media
 Power
TAN CHI WEI, CFA
(603) 2297 8690 chiwei.t@maybank-ib.com
 Construction & Infrastructure
 Power
WONG Wei Sum, CFA
(603) 2297 8679 weisum@maybank-ib.com
 Property & REITs
LEE Yen Ling
(603) 2297 8691 lee.yl@maybank-ib.com
 Building Materials
 Manufacturing
 Technology
LEE Cheng Hooi Head of Retail
chenghooi.lee@maybank-ib.com
 Technicals
HONG KONG / CHINA
Edward FUNG Head of Research
(852) 2268 0632 edwardfung@kimeng.com.hk
 Construction
Ivan CHEUNG, CFA
(852) 2268 0634 ivancheung@kimeng.com.hk
 Property
 Industrial
Ivan LI, CFA
(852) 2268 0641 ivanli@kimeng.com.hk
 Banking & Finance
Jacqueline KO, CFA
(852) 2268 0633 jacquelineko@kimeng.com.hk
 Consumer
Andy POON
(852) 2268 0645 andypoon@kimeng.com.hk
 Telecom & equipment
Alex YEUNG
(852) 2268 0636 alexyeung@kimeng.com.hk
 Industrial
Warren LAU
(852) 2268 0644 warrenlau@kimeng.com.hk
 Technology - Regional
Karen Kwan
(852) 2268 0640 karenkwan@kimeng.com.hk
 China Property
INDIA
Jigar SHAH Head of Research
(91) 22 6623 2601 jigar@maybank-ke.co.in
 Oil & Gas
 Automobile
 Cement
Anubhav GUPTA
(91) 22 6623 2605 anubhav@maybank-ke.co.in
 Metal & Mining
 Capital goods
 Property
Ganesh RAM
(91) 226623 2607 ganeshram@maybank-ke.co.in
 Telecom
 Contractor
21 December 2012
SINGAPORE
Gregory YAP Head of Research
(65) 6432 1450 gyap@maybank-ke.com.sg
 Technology & Manufacturing
 Telcos - Regional
Wilson LIEW
(65) 6432 1454 wilsonliew@maybank-ke.com.sg
 Hotel & Resort
 Property & Construction
James KOH
(65) 6432 1431 jameskoh@maybank-ke.com.sg
 Logistics
 Resources
 Consumer
 Small & Mid Caps
YEAK Chee Keong, CFA
(65) 6432 1460 yeakcheekeong@maybank-ke.com.sg
 Healthcare
 Offshore & Marine
Alison FOK
(65) 6432 1447 alisonfok@maybank-ke.com.sg
 Services
 S-chips
Bernard CHIN
(65) 6432 1146 bernardchin@maybank-ke.com.sg
 Transport (Land, Shipping & Aviation)
ONG Kian Lin
(65) 6432 1470 ongkianlin@maybank-ke.com.sg
 REITs / Property
Wei Bin
(65) 6432 1455 weibin@maybank-ke.com.sg
 S-chips
 Small & Mid Caps
INDONESIA
Katarina SETIAWAN Head of Research
(62) 21 2557 1125 ksetiawan@maybank-ke.co.id
 Consumer
 Strategy
 Telcos
Lucky ARIESANDI, CFA
(62) 21 2557 1127 lariesandi@maybank-ke.co.id
 Base metals
 Coal
 Oil & Gas
Rahmi MARINA
(62) 21 2557 1128 rmarina@maybank-ke.co.id
 Banking
 Multifinance
Pandu ANUGRAH
(62) 21 2557 1137 panugrah@maybank-ke.co.id
 Auto
 Heavy equipment
 Plantation
 Toll road
Adi N. WICAKSONO
(62) 21 2557 1130 anwicaksono@maybank-ke.co.id
 Generalist
Anthony YUNUS
(62) 21 2557 1134 ayunus@maybank-ke.co.id
 Cement
 Infrastructure
 Property
Arwani PRANADJAYA
(62) 21 2557 1129 apranadjaya@maybank-ke.co.id
 Technicals
THAILAND
Sukit UDOMSIRIKUL Head of Research
(66) 2658 6300 ext 5090
Sukit.u@maybank-ke.co.th
Maria LAPIZ Head of Institutional Research
Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
Maria.L@maybank-ke.co.th
 Consumer/ Big Caps
Andrew STOTZ Strategist
(66) 2658 6300 ext 5091
Andrew@maybank-ke.co.th
Mayuree CHOWVIKRAN
(66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th
 Strategy
Suttatip PEERASUB
(66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th
 Media
 Commerce
Sutthichai KUMWORACHAI
(66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th
 Energy
 Petrochem
Termporn TANTIVIVAT
(66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th
 Property
Woraphon WIROONSRI
(66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th
 Banking & Finance
Jaroonpan WATTANAWONG
(66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th
 Transportation
 Small cap.
Chatchai JINDARAT
(66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th
 Electronics
Pongrat RATANATAVANANANDA
(66) 2658 6300 ext 1398 pongrat.R@maybank-ke.co.th
 Services/ Small Caps
VIETNAM
Michael KOKALARI, CFA Head of Research
(84) 838 38 66 47 michael.kokalari@maybank-kimeng.com.vn
 Strategy
Nguyen Thi Ngan Tuyen
(84) 844 55 58 88 x 8081 tuyen.nguyen@maybank-kimeng.com.vn
 Food and Beverage
 Oil and Gas
Ngo Bich Van
(84) 844 55 58 88 x 8084 van.ngo@maybank-kimeng.com.vn
 Banking
Trinh Thi Ngoc Diep
(84) 844 55 58 88 x 8242 diep.trinh@maybank-kimeng.com.vn
 Technology
 Utilities
 Construction
Dang Thi Kim Thoa
(84) 844 55 58 88 x 8083 thoa.dang@maybank-kimeng.com.vn
 Consumer
Nguyen Trung Hoa
+84 844 55 58 88 x 8088 hoa.nguyen@maybank-kimeng.com.vn
 Steel
 Sugar
 Resources
PHILIPPINES
Luz LORENZO Head of Research
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com
 Strategy
Laura DY-LIACCO
(63) 2 849 8840 laura_dyliacco@maybank-atrke.com
 Utilities
 Conglomerates
 Telcos
Lovell SARREAL
(63) 2 849 8841 lovell_sarreal@maybank-atrke.com
 Consumer
 Media
 Cement
Kenneth NERECINA
(63) 2 849 8839 kenneth_nerecina@maybank-atrke.com
 Conglomerates
 Property
 Ports/ Logistics
Katherine TAN
(63) 2 849 8843 kat_tan@maybank-atrke.com
 Banks
 Construction
Ramon ADVIENTO
(63) 2 849 8842 ramon_adviento@maybank-atrke.com
 Mining
Page 13 of 16
Wynn Macau Limited
APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as
an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and
that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings.
Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related
information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum
invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not
take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors
should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or
recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees
(collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this
report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”,
“intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be
achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are
subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements.
Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any
such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of
unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law,
from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit
business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other
investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent
permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One
or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.
This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for
the actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country
or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such
circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of
investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical
location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank
KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited
investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally
liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the
Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand
and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the
perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the
Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand)
Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET.
MBKET accepts no liability whatsoever for the actions of third parties in this respect.
US
This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the
Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US
(registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in
the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the
US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You
should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant
legislation and regulations.
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial
Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the
Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take
any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as
constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.
21 December 2012
Page 14 of 16
Wynn Macau Limited
DISCLOSURES
Legal Entities Disclosures
Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa
Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued
and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim
Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand:
MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and
Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the
Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities
Commission of Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities
India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange
(Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker
(Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL
(Reg No 2377538) is authorized and regulated by the Financial Services Authority.
Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further
act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment
banking services, advisory and other services for or relating to those companies.
Singapore: As of 21 December 2012, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research
report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors,
connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph
16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 21 December 2012, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in
issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or
investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the
companies covered in this report.
OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of
the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable
of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political
factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of
any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its
own professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.
Definition of Ratings
Maybank Kim Eng Research uses the following rating system:
BUY
Return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD
Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)
SELL
Return is expected to be below -10% in the next 12 months (excluding dividends)
Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable
to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do
not actively follow developments in these companies.
Some common terms abbreviated in this report (where they appear):
Adex = Advertising Expenditure
BV = Book Value
CAGR = Compounded Annual Growth Rate
Capex = Capital Expenditure
CY = Calendar Year
DCF = Discounted Cashflow
DPS = Dividend Per Share
EBIT = Earnings Before Interest And Tax
EBITDA = EBIT, Depreciation And Amortisation
EPS = Earnings Per Share
EV = Enterprise Value
21 December 2012
FCF = Free Cashflow
FV = Fair Value
FY = Financial Year
FYE = Financial Year End
MoM = Month-On-Month
NAV = Net Asset Value
NTA = Net Tangible Asset
P = Price
P.A. = Per Annum
PAT = Profit After Tax
PBT = Profit Before Tax
PE = Price Earnings
PEG = PE Ratio To Growth
PER = PE Ratio
QoQ = Quarter-On-Quarter
ROA = Return On Asset
ROE = Return On Equity
ROSF = Return On Shareholders’ Funds
WACC = Weighted Average Cost Of Capital
YoY = Year-On-Year
YTD = Year-To-Date
Page 15 of 16
Wynn Macau Limited

Malaysia
Maybank Investment Bank Berhad
(A Participating Organisation of
Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank,
100 Jalan Tun Perak,
50050 Kuala Lumpur
Tel: (603) 2059 1888;
Fax: (603) 2078 4194
Stockbroking Business:
Level 8, Tower C, Dataran Maybank,
No.1, Jalan Maarof
59000 Kuala Lumpur
Tel: (603) 2297 8888
Fax: (603) 2282 5136

Singapore
Maybank Kim Eng Securities Pte Ltd
Maybank Kim Eng Research Pte Ltd
9 Temasek Boulevard
#39-00 Suntec Tower 2
Singapore 038989

Hong Kong
Kim Eng Securities (HK) Ltd
Level 30,
Three Pacific Place,
1 Queen’s Road East,
Hong Kong

Tel: (852) 2268 0800
Fax: (852) 2877 0104

Philippines
Maybank ATR Kim Eng Securities
Inc.
17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Philippines 1200

Tel: (63) 2 849 8888
Fax: (63) 2 848 5738
Thailand
Maybank Kim Eng Securities
(Thailand) Public Company
Limited
999/9 The Offices at Central World,
20th - 21st Floor,
Rama 1 Road Pathumwan,
Bangkok 10330, Thailand
Tel: (66) 2 658 6817 (sales)
Tel: (66) 2 658 6801 (research)

South Asia Sales Trading
Kevin FOY
kevinfoy@maybank-ke.com.sg
Tel: (65) 6336-5157
US Toll Free: 1-866-406-7447


21 December 2012

Maybank Kim Eng Securities
(London) Ltd
6/F, 20 St. Dunstan’s Hill
London EC3R 8HY, UK

Tel: (44) 20 7621 9298
Dealers’ Tel: (44) 20 7626 2828
Fax: (44) 20 7283 6674
Tel: (65) 6336 9090
Fax: (65) 6339 6003

London
Indonesia
PT Kim Eng Securities
Plaza Bapindo
Citibank Tower 17th Floor
Jl Jend. Sudirman Kav. 54-55
Jakarta 12190, Indonesia
Tel: (212) 688 8886
Fax: (212) 688 3500

Vietnam
In association with
Maybank Kim Eng Securities JSC
1st Floor, 255 Tran Hung Dao St.
District 1
Ho Chi Minh City, Vietnam
Tel : (84) 844 555 888
Fax : (84) 838 38 66 39
India
Kim Eng Securities India Pvt Ltd
2nd Floor, The International 16,
Maharishi Karve Road,
Churchgate Station,
Mumbai City - 400 020, India
Tel: (91).22.6623.2600
Fax: (91).22.6623.2604
Tel: (62) 21 2557 1188
Fax: (62) 21 2557 1189

New York
Maybank Kim Eng Securities USA
Inc
777 Third Avenue, 21st Floor
New York, NY 10017, U.S.A.

Saudi Arabia
In association with
Anfaal Capital
Villa 47, Tujjar Jeddah
Prince Mohammed bin Abdulaziz
Street P.O. Box 126575
Jeddah 21352
Tel: (966) 2 6068686
Fax: (966) 26068787
North Asia Sales Trading
Eddie LAU
eddielau@kimeng.com.hk
Tel: (852) 2268 0800
US Toll Free: 1 866 598 2267


www.maybank-ke.com | www.maybank-keresearch.com
Page 16 of 16