Sports Toto (former Berjaya Sports Toto)

[winston]

vested

Sports Toto (SPTOTO MK)
2QFY23: Commendable Earnings Recovery; Discounted Valuations Appeal

SPTOTO’s 2QFY23 results came in within expectations with STM’s revenue reaching 89% of pre-pandemic levels.

Despite the lack of long-term growth momentum and fluidity of the political landscape, we deem that these weaknesses have been largely reflected in SPTOTO’s sell-down since GE15.

Meanwhile, SPTOTO’s progressive earnings recovery and compelling prospective yield of 7.0-9.3% should provide moderate capital upside.

Upgrade to BUY with an unchanged target price of RM1.78.

Source: UOBKH

https://research.uobkayhian.com/content ... e00aec138f

[winston]

vested

Sports Toto 2Q net profit jumps 21.8% to RM64.8mil

The group’s net profit jumped 21.8% to RM64.8mil, or 4.81 sen earnings per share against RM53.3mil, or 3.97 sen in the same quarter last year.

It recorded RM1.4bil revenue in the second quarter, marking an increase of 13.1% over the revenue of RM1.2bil in the previous year’s corresponding quarter.

Source: The Star

https://www.thestar.com.my/business/bus ... o-rm648mil

[winston]

vested

Sports Toto
Yields to ride out tough near-term outlook

While SPTOTO’s dividend payout ratio may gradually rise in subsequent quarters, it may not be fully restored to >80% in the near term, in our view.

H.R. Owen’s LBT may be flat or wider qoq in 3QFY23F as costs stay high and depreciation and finance costs for its Hatfield facility start to kick in.

Reiterate Add with a 13% lower DCF-based TP of RM1.65. Its FY23-25F yields remain attractive at 5.3-7.1% p.a, even after our DPS cuts.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3ABE9A8668

[winston]

vested

Sports Toto confident of maintaining market share

In the third quarter ended March 31, SPToto’s net profit tumbled 70.8% to RM23.22mil, or earnings per share of 1.72 sen from RM79.6mil, or 5.93 sen a year ago.

Revenue for the quarter stood at RM1.65bil, down 4.2% from RM1.73bil in the corresponding quarter last year.

“The drop in results for the current quarter ended March 31 was mainly

Source: The Star

https://www.thestar.com.my/business/bus ... rket-share

[winston]

vested

Sports Toto dividend payout likely to recover as political headwinds pass

Sports Toto has year-to-date (9MFY23) declared a dividend per share of 6.5 sen.

HLIB projects Sports Toto's total dividend in FY23 to be nine sen per share, implying a payout ratio of about 60% and 6.5% yield.

However, HLIB said the payout would likely ramp up to more than 75% as the headwinds clear up in FY24.

Meanwhile, Sports Toto's luxury vehicle distribution business could face narrower operating margins due to increased expenses from UK inflationary pressure and the commencement of the new Hatfield facility.

Source: The Star

https://www.thestar.com.my/business/bus ... winds-pass

[winston]

vested

Dodged 3 big bullets
Upgrade to HOLD with a higher TP of MYR1.52 (+46%)

Status quo prevailed in the weekend’s 6 state elections.

We raise our long term EPS and DPS estimates by 9% and DCF-TP to MYR1.52 from MYR1.04.

With 7% upside potential, we upgrade SPTOTO to HOLD from SELL.

Unlike Magnum (MAG MK, BUY, CP: MYR1.17, TP: MYR1.25), SPTOTO is a HOLD as we note that its share price has been more resilient of late than MAG’s due to share buy-backs.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/334014.pdf

[winston]

vested

Sports Toto’s 4Q net profit rises 34%, declares 2.5 sen dividend

By Anis Hazim

Sports Toto Bhd’s net profit for the fourth quarter ended June 30, 2023 (4QFY2023) increased 34.33% to RM62.35 million from RM46.41 million a year ago, driven by better performance by its luxury car dealer HR Owen plc.

Quarterly revenue grew 10.68% to RM1.62 billion from RM1.46 billion a year earlier. Earnings per share improved to 4.63 sen from 3.46 sen.

For the full year of FY2023, Sports Toto’s net profit rose 37.94% to RM221.92 million from RM160.89 million in FY2022, as revenue was up 16.64% to RM6.1 billion from RM5.23 billion a year ago.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/679884

[winston]

vested

Sports Toto (SPTOTO MK)
4QFY23: Convincing Numbers

SPTOTO’s 4QFY23 results came in within expectations as gaming revenue further recovered and achieved about 82% of pre-pandemic levels.

We anticipate SPTOTO to deliver progressive earnings recovery coupled with compelling prospective yield of around 8% in FY24.

Meanwhile, investors’ sentiment should recover and focus on the group’s bargain valuations, especially when the political landscape has largely stabilised after state elections.

Retain BUY with a target price of RM1.78.

Source: UOBKH

https://research.uobkayhian.com/content ... b5f904286b

[winston]

not vested

Sports Toto expects growth in NFO segment in FY24

Illegal NFO business is estimated to be twice the size of the legal NFOs, which could deprive the country of tax revenue, conservatively estimated at RM5bil annually.

For the first quarter of FY24, Sports Toto posted a net profit of RM60.17mil, down from RM71.5mil in 1QFY23, with basic earnings per share dropping to 4.52 sen from 5.34 sen in the comparative quarter.

For 1QFY24, the group reported revenue of RM1.59bil, up from RM1.42bil in the 2022 quarter.

Source: The Star

https://www.thestar.com.my/business/bus ... nt-in-fy24

[winston]

vested

Sports Toto (SPTOTO MK)
1QFY24: Landing The Right Numbers

SPTOTO’s 1QFY24 results were largely in line despite lower draw days and weaker HR Owen performances.

We expect SPTOTO to continue delivering steady earnings in subsequent quarters, offering an attractive prospective yield of c.8% in FY24.

Meanwhile, investor sentiment should recover with focus on the group’s discounted
valuations, especially when the political landscape has largely stabilised after the state
elections.

BUY with an unchanged target price of RM1.78.

Source: UOBKH

https://research.uobkayhian.com/content ... 0a9024b72e