Sports Toto (former Berjaya Sports Toto)

[winston]

vested

Sports Toto 3Q net profit surges more than four-fold

Sports Toto Bhd (SPToto) net profit rose more than four-fold year-on-year to RM79.56mil for the third quarter ended March 31 from RM18.68mil.

Its revenue surged 54% to RM1.73bil during the quarter from RM1.12bil last year.

Source: The Star

https://www.thestar.com.my/business/bus ... -four-fold

[winston]

Potential to unlock value from outperforming H.R. Owen

Maintain BUY call and DCF-based TP of MYR2.24

Earnings were above our expectations due to H.R. Owen. Thus, we raise our FY22E/FY23E/FY24E earnings by 52%/5%/5%. T

hat said, H.R. Owen does not pay dividends to SPTOTO. Thus, our DPS estimates and DCF based TP are unchanged.

Yet, SPTOTO offers >20% upside potential ex H.R. Owen. There could be more upside if H.R. Owen pays dividends to SPTOTO or it is sold and proceeds are returned to SPTOTO shareholders.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/263107.pdf

[winston]

vested

Bullish outlook for Sports Toto

Source: The Star

https://www.thestar.com.my/business/bus ... ports-toto

[winston]

vested

Sports Toto (SPTOTO MK)

4QFY22: Largely Within Expectations, Nursing For Better FY23 Recovery

SPTOTO’s 4QFY22 results came in within our expectations.

While STM’s 4QFY22’s revenue achieved about 81% of pre-pandemic levels, we anticipate that ticket sales will further recover to 85-90% of pre-pandemic levels in 2023 following the removal of SOPs and rehiring of migrant workers.

This imminent recovery will allow SPTOTO’s valuations to partially price in the full earnings recovery and prospective yield of about 7.7% in FY23.

Maintain BUY with an unchanged target price of RM2.46.

Source: UOBKH

https://research.uobkayhian.com/content ... abfa282fcb

[winston]

vested

Decent end to FY22 but outlook less clear
Cut TP to MYR1.86 (-17%) and downgrade to HOLD

Earnings/dividends were within/above our expectations.

On closer inspection, the recovery in gross NFO sales/draw has been weaker than
we expected despite life returning to near normal.

We understand that illegal NFOs have become an even bigger bane in the post-COVID world.

We cut EPS estimates by 6-7% and DPS estimates by 10%.

Coupled with reducing terminal growth rate to 0% from 2%, we cut our DCF-based TP to MYR1.86 from MYR2.24. Downgrade SPTOTO to HOLD from BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/276037.pdf

[winston]

vested

Laggard recovery play with good yields

We came away neutral from ST’s 4QFY6/22 results briefing. It remains hopeful that NFO sales will gradually recover in subsequent quarters.

H.R. Owen’s earnings may fall in the coming quarters as ST sees softer luxury car sales and margins ahead. This is in line with our forecast.

Reiterate Add and DCF-based TP of RM2.05. Yields remain attractive at 8.0-8.5% p.a. in FY23-25F, which should support the share price.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 7674835436

[winston]

vested

Sports Toto starts off FY23 with RM71.5mil net profit for 1Q, declares 2 sen dividend

by Shazni Ong

Recorded RM71.5 million net profit in the first quarter

Sports Toto’s revenue for the quarter climbed 77.93% to RM1.42 billion from RM797.57 million a year ago, driven by STM Lottery’s revenue increase of 844.7% year-on-year, due to higher number of draws conducted.

HR Owen also recorded revenue growth of 7.1% which was mainly attributed to the new car sector.

On a quarter-on-quarter basis, Sports Toto’s net profit was up by 54.05% from RM46.41 million posted in 4QFY2022 while revenue eased by 2.88% from RM1.46 billion recorded in the immediate preceding quarter.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... n-dividend

[winston]

vested

Sports Toto to see minimal earnings impact amid Putrajaya’s move to trim special draws to eight per year — analysts

by Shazni Ong

“Firstly, special draws typically have lower sales compared to normal draws because of their non-routine nature. Punters typically prefer to play routine normal draws on Wednesday, Saturday and Sunday, while special draws are held on selected Tuesdays as prescribed.

“Secondly, a portion of special draw sales cannibalises sales from normal draws. Recall that special draws have higher tax than normal draws, which results in a net negative impact on earnings from this portion of sales that is cannibalised”.

Though special draws tend to fetch lower margins, the lower number of days will also crimp earnings.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... -%E2%80%94

[winston]

Sports Toto’s 2Q net profit rises 22% to RM65 mil; pays 2.5 sen dividend

by Syafiqah Salim

Quarterly revenue rose 13.07% to RM1.41 billion from RM1.25 billion.

"The improvement in result was mainly due to the improved performance of STM Lottery, which reported an increase in revenue of 28.4% and pre-tax profit of 29.6% in the current quarter under review" .

H.R. Owen plc, meanwhile, incurred a pre-tax loss of RM800,000 in the quarter under review as opposed to pre-tax profit of RM14.9 million in 2QFY2022 amid higher operating costs due to inflationary pressure as well as UK interest rate hike impact on the higher stocking loan drawdown.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/656167

[winston]

vested

Post-COVID recovery may have peaked

Maintain HOLD with lower DCF-TP of MYR1.40 (-12%)

Earnings outperformed our expectations.

On closer inspection, this was due to lower-than-expected prize payout ratio.

More tellingly, dividends underperformed our expectations.

Gross NFO sales/draw’s recovery to pre-COVID levels remains elusive despite more than a year having passed since NFO outlets reopened.

We cut EPS estimates by 8-10% and DPS by 8% p.a.

Net impact is a lower DCF-TP of MYR1.40 from MYR1.59.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/304074.pdf