Written by OSK Research
Friday, 12 March 2010 09:07
KUALA LUMPUR: OSK Research is maintaining a Buy on Berjaya Sports Toto (BToto) with a target price of RM4.90 after it announced a new lotto variant -- Supreme Toto 6/58 game.
It said on Friday, March 12 BToto remains a dividend yield play given its resilience backed by a stable revenue and cost structure and a visible capital management policy.
“We maintain our BUY recommendation and TP of RM4.90. The stock’s current valuations remain undemanding at 13.8x FY10 PER, with an implied average sustainable gross dividend yield of 6.8%,” it said.
BToto had on Thursday said it had received the necessary approvals to replace its Super Toto 6/49 game with a new lotto variant, the Supreme Toto 6/58 game. The Toto 6/58 game will be launched on March 18 and has a minimum upfront guaranteed jackpot of RM8.88 million.
“The new game is a wise strategic move to help enhance its competitive positioning as Magnum’s jackpot 4-D variant has been cannibalizing BToto’s market share,” it said.
