Magnum

Re: Magnum

Postby winston » Thu Aug 01, 2019 9:45 am

not vested

Coming back for seconds
Lift TP by 10% to MYR2.95; maintain BUY

We expect MAG’s gross NFO revenue/draw to recover YoY at an accelerated pace in 2Q19.

Thus, we lift our EPS/DPS estimates by +8%/+7% p.a. and DCF-TP to MYR2.95 from MYR2.67.

Coupled with an estimated 11sen DPS remaining for FY19 (4sen was already paid on 28 Jun 2019), MAG offers 14% total returns.

We continue to like MAG for its revenue recovery and dividend yields which are ~200bps higher than the 10-year Malaysian Government Securities yield.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 7f0ad0.pdf
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Re: Magnum

Postby winston » Fri Aug 23, 2019 8:41 am

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2QFY19: Enjoyed low prize payout ratio

1H19 core net profit was in line at 50.8% of our full-year forecast but above Bloomberg consensus' (54%) due to lower prize payout for its NFO division.

We estimate 2Q19 NFO prize payout ratio was only 72.5%, which we believe is not sustainable. Prize payout ratio should normalize to 75-76% in 2H19F.

Remains a Hold as its 6.5% dividend yield for FY19-21F should provide support for its share price.

Source: CIMB

https://brokingrfs.cimb.com/PGmGow8o17n ... txFGg2.pdf
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Re: Magnum

Postby winston » Fri Aug 23, 2019 9:18 am

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Magnum Berhad (MAG MK)

Share Price: MYR2.78
Target Price: MYR2.93
Recommendation: Hold

Cashing in some winnings first

2Q19 earnings were within our expectations but dividends outperformed as MAG employed a
DPR of 95% (MKE forecast: 83%).

Consequently, we leave our EPS estimates unchanged but raise DPS estimates by 2sen p.a.

It follows that we also trim our DCF-based TP by 2sen to MYR2.93. With <10% upside potential, we downgrade MAG to HOLD from BUY.

We will wait for Budget 2020 (scheduled for 11 Oct 2019) before revisiting our call.

For now, investors will be treated to high dividend yields of >6.0%.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... b8c18a.pdf
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Re: Magnum

Postby winston » Fri Aug 23, 2019 9:18 am

not vested

Magnum Berhad (MAG MK)

Share Price: MYR2.78
Target Price: MYR2.93
Recommendation: Hold

Cashing in some winnings first

2Q19 earnings were within our expectations but dividends outperformed as MAG employed a
DPR of 95% (MKE forecast: 83%).

Consequently, we leave our EPS estimates unchanged but raise DPS estimates by 2sen p.a.

It follows that we also trim our DCF-based TP by 2sen to MYR2.93. With <10% upside potential, we downgrade MAG to HOLD from BUY.

We will wait for Budget 2020 (scheduled for 11 Oct 2019) before revisiting our call.

For now, investors will be treated to high dividend yields of >6.0%.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... b8c18a.pdf
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Re: Magnum

Postby winston » Fri Aug 23, 2019 10:16 am

not vested

Magnum expects stronger FY19 as 2Q profit jumps 55% on higher gaming sales

by Arjuna Chandran Shankar

KUALA LUMPUR (Aug 22): Magnum Bhd's net profit for the second quarter ended June 30, 2019 (2QFY19) grew 55% to RM74.42 million from RM48.05 million in the corresponding quarter last year, due to better performance seen in its gaming segment.

Quarterly revenue rose 11% to RM666.4 million from RM600.39 million in 2QFY18, its stock exchange filing today showed.

Earnings per share (EPS) rose to 5.23 sen from 3.38 sen previously.

The group declared a second interim dividend of 5 sen per share — versus 3 sen in the same quarter a year ago — payable on Sept 27, with the entitlement date falling on Sept 19, bringing its year-to-date dividend payout to 9 sen from 7 sen in the same period last year.

The group said its gaming sales came in at RM666.23 million in 2QFY19, up 11% or RM66 million from RM600.24 million a year ago.

"The increase, despite two [less] draws, is mainly due to higher sales from the 4D Jackpot game arising from a prolonged jackpot run and sales generated from 4D classic game as the result of a more sustained enforcement by authorities on illegal operators," Magnum said.

As a result of the higher gaming sales, the group's gaming pre-tax profit rose to RM103.22 million from RM68.25 million previously.

The stronger second quarter lifted its half year net profit by 31% to RM134.43 million from RM102.99 million in the same period last year, with revenue rising 8% to RM1.42 billion from RM1.31 billion. EPS rose to 9.45 sen from 7.24 sen.

Although 2019 will have a reduced number of special draws, Magnum said it is optimistic that the growth in per draw revenue, as observed in 1HFY19, will offset the downward pressure caused.

"Together with the sustained momentum of enforcement by the authorities on illegal operators and our ongoing rebranding and reimaging exercise, the board expects the financial performance for the financial year 2019 to be better than that of 2018," the group said.

The counter closed 0.36% or a sen lower at RM2.78, giving the gaming company a market capitalisation of RM4 billion — with 1.02 million shares traded.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ming-sales
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Re: Magnum

Postby winston » Thu Sep 12, 2019 2:18 pm

not vested

Positives: Ongoing clampdown on illegal NFOs, potential new game variants and sustainable high
dividend payout

Potential monetisation of its ~6% stake in U Mobile could give rise to special DPS of 10.5 sen

Raise dividend payout ratio from 90% to 95%

Maintain BUY with a higher TP of RM3.35

Source: DBS

https://researchwise.dbsvresearch.com/R ... =eiajfkiia
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Re: Magnum

Postby winston » Mon Dec 09, 2019 10:56 am

not vested

Magnum Berhad (MAG MK)
Share Price: MYR2.67
Target Price: MYR2.75
Recommendation: Hold

Tax lightning strikes the same place twice, unfortunately

Barely 15 months after MAG settled a tax dispute with the IRB, the latter served the former with additional notices of assessment amounting to MYR182.8m or 13sen/shr.

MAG believes it has a strong case against the IRB.

Our EPS estimates are unchanged but we cut our DPS estimates by 3sen p.a. and our DCF-based TP to MYR2.75 from MYR2.82 to reflect the new notices of assessment.

With total upside of 8% still, we maintain our HOLD call on MAG.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 9983fe.pdf
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Re: Magnum

Postby winston » Fri Feb 21, 2020 11:33 am

Magnum (MAG MK)
4Q19: Diminished Luck


4Q19 adjusted net profit declined 25.6% yoy due to lower ticket sales, higher prize payout and fewer draw days.

2019 net profit eased 5.4% yoy despite the government’s effective clampdown on illegal operators. Nevertheless, Magnum remains a good defensive stock backed by an attractive dividend yield of >6%, with potential windfall gains on U-Mobile IPO eventually settling the ongoing tax dispute with IRB.

Maintain HOLD and RM2.79 target price. Entry price: RM2.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 844fa74c21
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