Berjaya Sports Toto Bhd
(Dec 13, RM4.22)
Maintain buy with target price RM4.85: Net profit for 2QFY12 of RM105.7 million (+62% year-on-year [y-o-y], +15% quarter-on-quarter [q-o-q]) brought 1HFY12 net profit to RM197.8 million (+53% y-o-y), within expectations at 49% of our FY12 estimate.
Revenue of RM1.7 billion (+2% y-o-y) for 1HFY12 was also in line at 48% of our FY12 estimate. Although it surprised with another interim net dividend per share (DPS) of eight sen (16 sen year-to-date), representing a net dividend payout ratio (DPR) of 108% (assumption: 75%), we still hold out for a major capital management exercise. Maintain “buy” with a target price (TP) of RM4.85.
Net profit for 2QFY12 was 62% higher y-o-y and 15% higher q-o-q largely due to an estimated prize payout ratio of 61% which was five percentage points (ppts) lower y-o-y and 2 ppts lower q-o-q. Net profit for 1HFY12 was 53% higher y-o-y largely due to an estimated prize payout ratio of 62% which was 4 ppts lower y-o-y.
Principal subsidiary Sports Toto’s 2QFY12 revenue was 1.8% higher y-o-y. Given that 2QFY12 had one or 2.2% fewer draws y-o-y, Sports Toto’s 2QFY12 revenue/draw was 4% higher y-o-y. Sports Toto’s 2QFY12 revenue was also 2.3% higher y-o-y.
Given that 2QFY12 had also one or 2.2% fewer draws q-o-q, Sports Toto’s 2QFY12 revenue per draw was 4.5% higher q-o-q.
A second interim net DPS of eight sen (+100% y-o-y, +0% q-o-q) brought 1HFY12 net DPS to 16 sen (+33% y-o-y) which represented a net DPR of 108% (assumption: 75%). That said, we still hold out for a major capital management exercise to “assist” its major shareholder, Berjaya Land Bhd, which assumed bridging loans to redeem its RM695.4 million exchangeable bonds on Aug 15.
We maintain our “buy” call and RM4.85 target price (TP). We leave our earnings estimates unchanged. Our TP is discounted cash flow-based and implies 16 times one-year forward price earnings ratio (13-year historical average: 15 times).
We like BToto for its positive earnings reversal from 4D Toto Jackpot, defensive earnings profile, high net dividend yields of 6% and potential for capital management. This stock is one of our top picks for 2012. — Maybank IB Research, Dec 13
(Dec 13, RM4.22)
Maintain buy with target price RM4.85: Net profit for 2QFY12 of RM105.7 million (+62% year-on-year [y-o-y], +15% quarter-on-quarter [q-o-q]) brought 1HFY12 net profit to RM197.8 million (+53% y-o-y), within expectations at 49% of our FY12 estimate.
Revenue of RM1.7 billion (+2% y-o-y) for 1HFY12 was also in line at 48% of our FY12 estimate. Although it surprised with another interim net dividend per share (DPS) of eight sen (16 sen year-to-date), representing a net dividend payout ratio (DPR) of 108% (assumption: 75%), we still hold out for a major capital management exercise. Maintain “buy” with a target price (TP) of RM4.85.
Net profit for 2QFY12 was 62% higher y-o-y and 15% higher q-o-q largely due to an estimated prize payout ratio of 61% which was five percentage points (ppts) lower y-o-y and 2 ppts lower q-o-q. Net profit for 1HFY12 was 53% higher y-o-y largely due to an estimated prize payout ratio of 62% which was 4 ppts lower y-o-y.
Principal subsidiary Sports Toto’s 2QFY12 revenue was 1.8% higher y-o-y. Given that 2QFY12 had one or 2.2% fewer draws y-o-y, Sports Toto’s 2QFY12 revenue/draw was 4% higher y-o-y. Sports Toto’s 2QFY12 revenue was also 2.3% higher y-o-y.
Given that 2QFY12 had also one or 2.2% fewer draws q-o-q, Sports Toto’s 2QFY12 revenue per draw was 4.5% higher q-o-q.
A second interim net DPS of eight sen (+100% y-o-y, +0% q-o-q) brought 1HFY12 net DPS to 16 sen (+33% y-o-y) which represented a net DPR of 108% (assumption: 75%). That said, we still hold out for a major capital management exercise to “assist” its major shareholder, Berjaya Land Bhd, which assumed bridging loans to redeem its RM695.4 million exchangeable bonds on Aug 15.
We maintain our “buy” call and RM4.85 target price (TP). We leave our earnings estimates unchanged. Our TP is discounted cash flow-based and implies 16 times one-year forward price earnings ratio (13-year historical average: 15 times).
We like BToto for its positive earnings reversal from 4D Toto Jackpot, defensive earnings profile, high net dividend yields of 6% and potential for capital management. This stock is one of our top picks for 2012. — Maybank IB Research, Dec 13
