Company Name: BERJAYA SPORTS TOTO BHD
| Research House: HLG | Price Call: BUY | Target Price: 4.92 |
BToto (BUY)
1HFY12 Results In-Line
'''' BToto's 1HFY12 net profit of RM197.8m came largely in-line, accounting for 50% of HLIB's and street's estimates.
'''' It declared second interim single tier dividend of 8 sen per share payable on 18 Jan 2012. 1HFY12's dividend totaled to 16 sen (1HFY11: 12 sen), representing dividend payout ratio and dividend yield of 109.3% and 3.6% respectively.
'''' The increase in net profit yoy was mainly due to the introduction of 4D Jackpot and lower prize payout ratio, partially offset by lesser draw days. On qoq basis, the increase is attributed to the lower prize payout ratio which also partially offset by lesser draw days in the quarter.
'''' Besides, BToto's total sales per draw increased 4.3% qoq and 4.4% yoy shows better performance in its 4D Jackpot game despite lesser draw days during the quarter.
'''' 4D Jackpot's sales remained stable during the quarter at RM1.7m/draw, reaching to 44.4% market share against Magnum's 55.6%.
'''' Forecasts remained unchanged with TP of RM4.92 based on DCF with WACC of 8.8%. Maintain BUY.
''
KLCI: Volatility ahead''
'''' Amid continued volatility, we still advocate the strategy of buy on weakness and take profits in any rebound, in anticipation of year-end window dressing activities, potential Chinese New Year and pre-election rallies as well as sufficient domestic catalysts and fiscal stimuli that will support a modest economic growth in 2012. Immediate supports are 50-d SMA or uptrend line (1449), followed by lower Bollinger band (1426). Resistance levels are 10-d SMA (1474) and 200-d SMA (1503).
''
MRCB: Base building for an impending breakout''
'''' After rising to 52-wk high of RM2.60 (2 Aug), it tumbled to RM1.48 (26 Sep) before trending upwards to RM1.97 yesterday. MRCB is likely to consolidate for a short while with immediate support at RM1.87 (Nov 24 low).
'''' After a brief consolidation, the next upswing is expected to push prices towards its daily upper Bollinger band (RM2.06) and 200-d SMA (RM2.10). A breakout above RM2.10 will drive prices higher towards stronger resistance zones of RM2.18 (38.2% FR) and RM2.35 (23.6% FR). Cut loss below RM1.85.
No comments:
Post a Comment