BToto (BUY) - 9MFY12 Results In-Line

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD

Research House: HLG

Price Call: BUY

Target Price: 4.92

BToto (BUY)

9MFY12 Results In-Line

BToto's 9MFY12 net profit ofRM315.71m came in-line, with HLIB's and also street's estimates, accounting for78.7% and 79.4% respectively.

Declared third interimsingle tier dividend of 6 sen per share (2QFY11: 6 sen). Total dividend for9MFY12 is 22 sen, translating to 5% yield. Given that this has reached ourfull-year dividend forecast of 22 sen and no changes made to our forecast, wewouldn't be surprise if the group decided to pay another round of dividend in4QFY12, which will be a bonus for investors.

Yoy: BToto's revenueincreased 14.9% on the back of higher number of draw days and higher salesduring CNY. This is offset by the lesser sales/draw in non-jackpot games,cannibalized by 4D Jackpot. However, net profit fell 2.7% due to the muchhigher prize payout of 62.4% compared to only 58.8% in 3QFY11.

Qoq: Revenue went up 13%mainly attributable to the higher number of draw days. The increase innon-jackpot's and lotto games' sales/draw from the lessened cannibalization by4D Jackpot also contributed to the increase qoq. However, the increase waspartially offset by the higher prize payout during the quarter.

To date, 4D Jackpotsales have reached to an average of RM1.76m sales per draw. However, Magnum isstill the leader in the 4D Jackpot segment with market share of 60.1%.

No changes made to ourforecast. Maintain BUY on BToto with TP of RM4.92.

Source: HLIB Research 22 March 2012