KUALA LUMPUR: CIMB Equities Research is maintaining its outperform on Berjaya Sports Toto (BToto) for its pure numbers forecast operators (NFO) status, continued market leadership and solid gross dividend yields of 7%-8%.
The research house said on Tuesday, Jan 26 it had an Outperform on BToto at RM4.25 while it raised the target price from RM5.30 to RM5.45.
It said the government's move to award all three NFO players a record 20 special draw days for 2010 is positive, quantity-wise.
“But we are slightly disappointed that the NFO players have to hold all the special draws on the same days given that isolated special draws tend to generate higher ticket sales,” it said.
CIMB Research said notwithstanding the potential clashes of draw days, we view the latest allocation as a net positive development.
“We lift our FY10-12 core earnings estimates by 2%-3% after increasing the number of draw days by 4-5%, and clipping 2%-3% off our revenue/draw projection given the overlapping draws.
“Our DPS estimates also go up by about 3% as we stick to our 75-78% payout assumptions. The DPS upgrades take our DDM (dividend discount model) based target price higher from RM5.30 to RM5.45,” it added
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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