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

[winston]

vested

Sports Toto’s 4Q net profit rises 8.4%, declares two sen dividend

By Choy Nyen Yiau

Net profit of RM67.6 million for the fourth quarter ended June 30, 2024 (4QFY2024), up 8.4%.

Quarterly revenue increased 2.1% year-on-year to RM1.65 billion

STM Lottery reported a 9.8% revenue growth; Pre-tax profit rose 47.6%.

HR Owen plc, saw a 5.1% decline in revenue; Pre-tax profit decreased to RM17.6 million

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/724073

[winston]

vested

Sports Toto reports drop in 1Q25 net profit

Reported a 31.3% decline in net profit for the first quarter ended Sept 30, 2024 (1Q25).

The closure of legal NFO outlets in Kedah and Perlis will result in the proliferation of illegal operators in these underserved areas.

Sports Toto posted a net profit of RM41.3mil, or earnings per share (EPS) of 3.06 sen in 1Q25, compared with RM60.2mil or EPS of 4.52 sen in the same quarter last year.

Revenue fell to RM1.44bil against RM1.59bil a year prior.

Source: The Star

https://www.thestar.com.my/business/bus ... net-profit

[winston]

vested

Maintain BUY call and MYR1.65 DCF-TP

Results underperformed our expectations due to a surprise loss at H.R. Owen. That said, we maintain our estimates, BUY call and MYR1.65 DCFTP as history has shown us that H.R. Owen earnings can turnaround relatively quickly.

More importantly, the NFO segment which traditionally contributes 80-90% to group earnings and 100% to dividends remains relatively stable.

In any case, we have not assigned any value to H.R. Owen (Fig. 2). Thus, there is no downside risk to overall valuations from it.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/420401.pdf

[winston]

vested

FY24 NFO segmental revenue accounted for about 90% to 95% of pre-pandemic figures.

“Nevertheless, we forecast the NFO’s earnings before interest and tax (Ebit) to decrease about 6% year-on-year (y-o-y) after considering the normalisation of the prize payout ratio (luck factor) in FY25.

“For HR Owen, car sales volume will be boosted by deliveries of various newly launched iconic models (i.e. Lamborghini Revuelto, Rolls Royce Spectre, Ferrari Purosangue (SUV) and Daytona SP3).

“However, we foresee a flattish y-o-y revenue growth, factoring in the strength of the ringgit against the pound, as well as about 50% deterioration in Ebit after accounting for first quarter of FY25 losses,” it said.

Source: The Star

[winston]

vested

Sports Toto’s net profit doubles in 2Q25, remains optimistic for FY25

In 2Q25, Sports Toto’s net profit surged to RM49.7mil, or earnings per share of 3.68 sen compared with RM24.2mil, or 1.83 sen.

Revenue for the quarter rose 8.3% to RM1.5bil against RM1.4bil previously.

The board has declared a second interim dividend of 2.0 sen per share for FY25, payable on April 18, with an entitlement date of March 28.

Source: The Star

https://www.thestar.com.my/business/bus ... c-for-fy25