Gaming (OVERWEIGHT) - Defensive Stocks Staying Still

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD

Research House: HLG

Price Call: BUY

Target Price: 4.92

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HLG

Price Call: BUY

Target Price: 4.17

Stock Name: GENTING
Company Name: GENTING BHD

Research House: HLG

Price Call: BUY

Target Price: 11.50

Gaming(OVERWEIGHT)

DefensiveStocks Staying Still

• GenM's FY11 results came in linewhereas GenT's FY11 results were aboveexpectations. BToto on the other hand, will be releasing its 3QFY12 results on21 March.
• BToto's results is expected toreport strong yoy and qoq growth due to higher number of draw days, the CNYfestival which falls in Jan and the impact of 4D Jackpot.
• Our regression test also showed thatthe cannibalization by 4D Jackpot has narrowed down to RM213k from RM536k perdraw previously.
• BToto's 4D sales have been on adeclining trend since 2009, partly due to the matured game. Magnum's 4D salesexperienced the same trend as well.
• RWNY's net win begins to improve ascustomers get used to the cold weather in NY. State-wide's average net winbreaches its historical high with US$313/VLT/day.
• GenS launched its remaining 2 luxuryaccommodations last month. They now have a total of 1,538 rooms in the resort.
• Given that we had upgraded ourratings on GenM and GenT
  (post FY11 results) to BUY, we upgrade the sector to OVERWEIGHT. Toppick according to preference are: (1) BToto (BUY, TP: 4.92), GenM (BUY, TP:4.17) and (3) GenT (BUY, TP: 11.50).

Source: HLIB Research 20 March 2012