Sports Toto (former Berjaya Sports Toto)

Sports Toto (former Berjaya Sports Toto)

Postby winston » Sun Jun 22, 2014 5:24 pm

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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
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Re: Berjaya Sports Toto

Postby winston » Fri Dec 19, 2014 5:48 am

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Berjaya Sport Q2 net profit up 20.6% to RM99.7mil

KUALA LUMPUR: Berjaya Sports Toto Bhd recorded a 20.6% year-on-year jump in net profit to RM99.7mil from RM82.6 in the second quarter ended Oct 31, 2014, as revenue rose 44.7% to RM1.254bil from RM866.9mil.

Earnings per share in the quarter climbed to 7.39 sen from 6.19 sen, and the company declared a second interim dividend of 6 sen per share, with the entitlement date fixed on Jan 30, 2015 and payment date on Feb 13, 2015.

The payout will amount to approximately RM154.8mil, representing 87% of the attributable profit in the quarter.

According to Berjaya Toto, the increase in revenue was mainly down to the consolidation of its prestige car dealership in the UK, H.R. Owen Plc, while the increase in profit was mainly because of the results of Sports Toto Malaysia Sdn Bhd.

“Sports Toto, the principal subsidiary, recorded a decrease in revenue of 4.3% as compared to the previous year corresponding quarter. In spite of the drop in revenue, Sports Toto registered an increase in pre-tax profit of 6.7% mainly attributable to lower prize payout in the current quarter under review,” Berjaya Sports said.

It added that in its Filipino operations, the Philippine Gaming Management Corporation registered an increase in revenue and pre-tax profit of 4.5% and 0.7% respectively, mainly due to higher lease rental income earned as a result of higher sales reported by the Philippine Charity Sweepstakes Office.

For the two quarters so far, net profit fell 1.9% to RM178mil from RM181.4mil. This was despite revenue rising to RM2.498bil – a 42.4% increase over the RM1.754bil posted in the corresponding two quarters a year earlier.

On its prospects for the rest of the financial year, Berjaya Sports said it was cautiously optimistic, considering inflation was weighing down on domestic consumer spending, not to mention the uncertainty over the effects of the implementation of GST on April 1, 2015.

Source: The Star
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Re: Berjaya Sports Toto

Postby winston » Tue Dec 26, 2017 4:31 pm

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Dec 19, 2017

Excellent Yield Play

1HFY18 core profit declined marginally by 5.8% YoY to RM136.4mn while revenue dropped 1.2% YoY to RM2.9bn.

The earnings disappointment came mainly from H.R.Owen, which suffered minor LBIT of RM1.3mn in 2QFY18 (vs an EBIT of RM7.9mn recorded a year ago), due to softening demand of new and used cars in UK. Also, the higher effective tax rate (34.2%) in 2QFY18 dragged 1HFY18 earnings lower as well.

The impact was partially mitigated by better performance of its NFO division, which recorded higher revenue and PBT of 4.4% and 17.1% YoY respectively, despite one lesser draw in 2QFY18. The higher sales can be attributed to high jackpot value in the Grand Toto 6/63, hitting record
high of RM69.6mn in Sep-17. Meanwhile, the increase in EBIT was due to higher prize payout in 2QFY17.

We maintain our DDM valuation of RM3.34/share for BJToto, based on an unchanged CAPM rate of 10.20%. Given the current low yielding environment, BJToto stands out as an excellent dividend play with annual dividend yield of 7.0%. As such, we reiterate our Buy recommendation
on BJToto.

Source: TA Securities
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Re: Berjaya Sports Toto

Postby winston » Wed Dec 27, 2017 7:07 pm

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BERJAYA SPORTS TOTO BHD

Outperform (maintained)
Target price: RM2.70

BERJAYA Sports Toto Bhd’s (BToto) higher ticket sales year-on-year (y-o-y) in the second quarter of financial year 2018 (FY18) is a “positive sign”, according to Kenanga Research.

This was despite the number forecast operator’s second quarter FY18 financial results, which were below expectation, primarily due to higher prize payout ratio and higher effective tax rate of 34%.

Kenanga Research has reiterated its “outperform” call on BToto but lowered its target price to RM2.70 from RM2.95 previously.

“BToto has released second quarter FY18 net profit of RM61.7mil, which came below our expectation, bringing first half of FY18 earnings to RM136mil. This accounted for 42% and 48% of house and street’s full-year estimates for the current FY18.

“Share price of BToto has been fairly stable in the past three quarters. Together with improved luck factor and stabilised ticket sales, we believe its share price should have bottomed.

“Even with earnings cut, the stock still trades at a very attractive level of 10 times of 2018 price-to-earnings ratio,” said the research house in a note.

BToto’s ticket sales rose 4% y-o-y in second quarter FY18 as average ticket sale per draw also grew 4%, while ticket sales inched up 1% in the first half of FY18 as average ticket sales per draw improved by 2%.

Sequentially, the number forecast operator’s performance was dragged down by losses of its 98.38% indirect-owned UK automobile distributor HR Owen Plc.

BToto recorded a lower 17% quarter-on-quarter net profit at RM61.7mil, as HR Owen’s car sales declined, coupled with lower profit margins for certain new car sales.

Kenanga Research added that luck factor and ticket sales remained crucial for an improved earnings of BToto.

“Both BToto and its peer Magnum Bhd managed to register improved luck factor and ticket sales in the past three to four quarters, which is a good sign. As such, we believe the downtrend should have bottomed.

“In all, we have reduced our FY18-FY19 estimates by 10% and 6% on the back of raising our estimated prize payout ratio assumption to 62% from 61% previously, while effective tax rate assumption is increased to 30% in FY18 from 28% previously,” it said.

Source: Kenanga Research
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Re: Berjaya Sports Toto

Postby winston » Fri Jan 12, 2018 9:57 am

Place your bets on the ace of spades

Persistent loss of market share to the illegal gaming syndicates due to weakened consumer sentiment has inundated the NFO industry for the last three years.

However, we believe ticket sales have stabilised at end-2017F and punters’ interest will be sustained in 2018F, given the small-ticket and habitual nature of betting.

We raise FY18-20F EPS slightly by 4-7% for housekeeping purposes following the release of the group’s annual report.

Maintain Add with higher DDM-based target price of RM2.90. FY18-20F dividend yields (based on our estimates) remain attractive at 6.9-7.5%.

Source: CIMB

https://brokingrfs.cimb.com/DM2RHtO-Puq ... 1s8dw2.pdf
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Re: Berjaya Sports Toto

Postby winston » Mon Apr 22, 2019 9:35 am

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Berjaya Sports Toto (BST MK)
STM total gross NFO sales/draw recovery to accelerate
Lift TP to MYR2.88 from MYR2.65; maintain BUY

We raise our STM FY4/19 total gross NFO sales/draw growth forecast to 0% YoY (-2% YoY previously).

We continue to forecast STM FY20/FY21 total gross NFO sales/draw growth of 3%/2%.

Net impact is to raise our EPS estimates by 2% p.a.. Coupled with a higher terminal growth rate of 2.0% (1.5% previously), we raise our SOP-based TP by 9% to MYR2.88.

With 13% upside potential and >6% dividend yields p.a., we retain BST at BUY.

We prefer BST for its cheaper valuations and higher dividend yields.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... ca919e.pdf
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Re: Berjaya Sports Toto

Postby winston » Wed Jul 10, 2019 12:57 pm

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Berjaya Sports Toto (BST MK)

Share Price: MYR2.80
Target Price: MYR3.05
Recommendation: Buy

Paring shareholding in PGMC

BST cut its shareholding in Philippine Gaming Management Corporation (PGMC). Thus, we trim our core FY6/20 and FY6/21 EPS estimates by 6% p.a. but leave our DPS estimates and SOP-TP unchanged.

We opine that BST is gearing up for the large National Online Lottery System (NOLS) contract under PGMC.

If PGMC is successful, there may be upside to our EPS estimates. With high dividend yields of ~6% p.a. coupled with 9% upside potential, BST offers ~15% total return.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 7e9921.pdf
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Re: Berjaya Sports Toto

Postby winston » Wed Jul 10, 2019 1:08 pm

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June 19, 2019

The current dovish interest rate environment bodes well for dividend paying stock like BJToto with a resilient dividend yield of more than 5%. However, we remain cautious on Malaysian economy and worry about Brexit, which may dampen consumer sentiment and spending power.

Also, note that FY20 will begin to see the first full-year impact of reduction in special draws by half and the absence of tax holiday. We expect the NFO division to register EBITDA contraction of 7.4% YoY on annualised basis.

Valuation

With the change in earnings forecast and rolling forward our valuation base year, we raise our DDM valuation higher to RM2.29/share (from RM2.21 previously), based on unchanged discount rate of 10.2%.

However, we reiterate our Sell recommendation on BJToto given the looming risks to FY20 earnings.

Source: TA Securities
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Re: Berjaya Sports Toto

Postby winston » Wed Jul 10, 2019 1:12 pm

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Jully 5, 2019

Berjaya Sports Toto's growth may be unsustainable, says Affin Hwang

KUALA LUMPUR: Affin Hwang Capital research is sceptical over the sustainability of Berjaya Sports Toto Bhd's growing market share from the recent crackdown on illegal operators.

In a note, the research house maintained its sell call on the counter with an unchanged target price of RM2.10 as it cautioned that government enforcement efforts may not be able to sustain the intensity of the crackdown.

"We also believe that future enforcement would be more challenging, as illegal operators are moving their operation online from physical establishment.

"Some punters still prefer the illegals due to their higher payouts," it said.

Meanwhile, Berjaya Sports Toto's management said in a briefing that the Philippines Charity Sweepstake Office had initiated a new tender for the leasing of lottery equipment.

Berjaya Philippines will submit a bid for the contract for the supply for the whole Philippines instead of just the Luzon region.

"Their current leasing contract is expected to be completed by this year, and we believe that the new pricing is likely to be lower than the current one, assuming they win the bid.

"Results of the bid will likely to be known by end of the year," said Affin Hwang.

Source: The Star

https://www.thestar.com.my/business/bus ... yOACHq3.99
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Re: Berjaya Sports Toto

Postby winston » Fri Aug 02, 2019 11:46 am

Berjaya Sports Toto (BST MK)
Attractive Dividend Yield Reflects Some Uncertainties


While the government’s campaign against illegal NFO operators has allowed BST’s earnings to grow by 3-4% this year, further upside needs the approval of long delayed Gaming Act amendment, which would only be achieved by 2020 at earliest.

Despite the attractive prospective dividend yield of 6%, the stock’s upside is limited following its
26% ytd appreciation and moderate risk of BST failing to renew its Philippine’s lottery concession.

Maintain HOLD. Target price: RM2.40. Entry price: RM2.20.

Source: CIMB

https://research.uobkayhian.com/content ... 982e85fc49
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