not vested
HongLeong Research maintains Buy on BJ Toto
Jun 18, 2014
KUALA LUMPUR: HongLeong Investment Research is maintaining its “buy” call on Berjaya Sports Toto Bhd (BToto) for its high dividend yield of 7.3% with an unchanged target price of RM4.15 based on discounted cash flow valuations.
BToto recorded earnings of RM323.94mil for financial year 2014 (FY2014) accounting for 96% of the research house forecasts.
Moreover, Lotto games experienced a 15% drop year-on-year (y-o-y) in sales due to lower average sales from Power 6/55 and Supreme 6/58.
“Gaming revenue fell in absence of strong sales from its lotto game”, it said.
4D Jackpot showed signs of stabilisation despite the drop in sales previously.
In contrast, there was a 43% increase in the sales growth of Mega 6/52. The movement of price payout amounts determines lotto games sales, as higher prize payout would result in higher average sales per draw.
For quarter-on-quarter (q-o-q) FY14 results, total revenue increased largely due to the revenue growth from HR Owen.
In addition, gaming grew marginally due to sales growth across all games and additional draw day.
Gaming grew slightly from one additional draw day as well as sales growth across all its games
“To date, Magnum remained as the market leader with highest market share of 42.8%, followed by BToto at 38.8% and Da Ma Cai at 18.4%.
“BToto’s market share remained relatively stable while Da Ma Cai’s market share continues to fluctuate from more volatile sales per draw,”it said.
Source: The Star