KUALA LUMPUR (Dec 13): RHB Research Institute is maintaining an Outperform on Berjaya Sports Toto and has a fair value of RM4.85.
It said on Tuesday that BToto’s stronger second quarter earnings for 2QFY4/12 were due to 4D jackpot and improved luck factor and the net profit was in line with expectations, growing by 62.4% on-year.
“We believe most of the earnings growth was attributed to the 4D jackpot game as well as improved luck factor, which resulted in prize payout ratio falling to 62.8% (from 64.6% in the 1Q).
“Maintain earnings forecasts and DCF-derived fair value of RM4.85. We believe BToto is defensive in an environment of economic uncertainty, with minimal risk to the very decent dividend yields of 6%-7% per annum. Maintain Outperform,” said RHB Research.
It said on Tuesday that BToto’s stronger second quarter earnings for 2QFY4/12 were due to 4D jackpot and improved luck factor and the net profit was in line with expectations, growing by 62.4% on-year.
“We believe most of the earnings growth was attributed to the 4D jackpot game as well as improved luck factor, which resulted in prize payout ratio falling to 62.8% (from 64.6% in the 1Q).
“Maintain earnings forecasts and DCF-derived fair value of RM4.85. We believe BToto is defensive in an environment of economic uncertainty, with minimal risk to the very decent dividend yields of 6%-7% per annum. Maintain Outperform,” said RHB Research.
