Sports Toto (former Berjaya Sports Toto)

[winston]

vested

Very close to putting the ghost of COVID-19 to rest

Upgrade to BUY with higher TP of MYR1.55 (+11%)

Earnings/dividends came in above/within our expectations.

NFO sales/draw/outlet pleasantly surprised by coming in a hair’s width within pre-COVID levels.

We raise FY24E-FY26E EPS by 8% p.a. as we raise NFO sales/draw/outlet assumption to 90% of pre-COVID levels from 85% of preCOVID levels from FY24E onwards.

Consequently, we also raise our DCF-TP to MYR1.55 from MYR1.40.

With >10% upside potential, we upgrade SPTOTO to BUY from HOLD.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/351872.pdf

[winston]

vested

Sports Toto’s 2Q net profit plummets 63% on lower sales, higher costs

By Izzul Ikram

Sports Toto Bhd said on Friday that its net profit shrank 63% in the second quarter from a year earlier, due to lower sales at both its lottery and luxury car businesses, as well as higher operating costs.

Net profit for the three months ended Dec 31, 2023 (2QFY2024) was RM24.22 million compared to RM64.86 million over the same period a year earlier (2QFY2023).

Revenue for the quarter slipped 2.85% year-on-year to RM1.37 billion from RM1.41 billion.

Closure of outlets in Kedah and Perlis due to state government policy will lead to the encroachment of illegal operators.

Profit before tax at its mainstay lottery unit declined 16.5% on lower sales, coupled with higher prize payout and operating expenses.

Pre-tax loss at its luxury car unit widened to RM15.8 million versus RM800,000, on lower sales and higher costs.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/702162

[winston]

vested

H.R. Owen engine needs a bit of revving
Maintain BUY and MYR1.55 DCF-TP

As much as H.R. Owen was SPTOTO’s saving grace during the COVID-19 pandemic, its role has reversed post-COVID-19.

We cut our EPS estimates by 15-17% to reflect lower earnings contributions from H.R. Owen.

Yet, our DPS estimates and MYR1.55 DCF-TP are unchanged as SPTOTO never sourced any dividends from H.R. Owen and we have never ascribed any value to H.R. Owen because of it.

We still like SPTOTO for its high dividend yield of 8% p.a. which is sourced from its more stable NFO operations.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/366323.pdf

[winston]

vested

Sports Toto almost triples net profit to RM68mil 3Q

Sports Toto’s net profit almost tripled to RM68.4mil in the third quarter ended March 31 compared with RM23.2mil in the same corresponding quarter last year.

Revenue for the period rose to RM1.69bil against RM1.65bil previously.

Earnings per share for the quarter stood at 5.09 sen versus 1.72 sen previously.

Source: The Star

https://www.thestar.com.my/business/bus ... rm68mil-3q

[winston]

vested

Sports Toto rises to 18-month high on above-view 3Q results

By Jason Ng

A majority of five out of seven analysts covering Sports Toto recommended ‘hold’ calls, while the remaining two had ‘buy’ ratings, according to Bloomberg. The target prices range from RM1.36 to RM1.72.

Sports Toto still offers “very attractive” annual dividend yields of 7.1%, which is more than the current yield on 10-year Malaysian Government Securities of 3.9%.

Sports Toto reported that its net profit for 3QFY2024 was RM68.45 million, compared with RM23.22 million a year earlier.

Revenue inched up 2.4% to RM1.69 billion from RM1.66 billion.

For 9MFY2024, net profit dropped 4.2% to RM152.83 million from RM159.58 million.

The company's nine-month top line, however, rose 3.9% to RM4.66 billion from RM4.48 billion previously.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/713026