BJTOTO (1562) : Affin Hwang Research maintains Add on Berjaya Sports Toto
KUALA LUMPUR: Affin Hwang Research has maintained its Add call on Berjaya Sports Toto (BST) with a target price of RM4.10 a share but trimmed its FY15-17E earnings forecast by 6% as it lowered the earnings contributions from H.R.Owen by 3%.
However, it maintained dividend payment at 28 sen based on historical DPS trends for the last four years.
In a note on Friday, the research house said BST's 1HFY15 core net profit of RM177mil is inline with market but slightly below its expectations.
"We trim our FY15-17E earnings by 6% as we lower the earnings contributions from the franchised motor vehicle segment, but maintain our Add rating with a lower target price of RM4.10.
"We continue to expect near-term earnings weakness as rising costs continues to weigh down on domestic consumer spending," it said.
It addde that the group’s 2QFY15 revenue increased by 43% on-year to RM1239bil largely driven by the consolidation of H.R. Owen Plc. This is mitigated by a 6.1% on-year decline in revenue/drawdays to RM18.4mil due to fewer drawdays in the period.
Its second Interim dividend declared at six sen a share, where it came in within Affin Hwang's expectations for FY15E (91% dividend payout).
http://www.thestar.com.my
KUALA LUMPUR: Affin Hwang Research has maintained its Add call on Berjaya Sports Toto (BST) with a target price of RM4.10 a share but trimmed its FY15-17E earnings forecast by 6% as it lowered the earnings contributions from H.R.Owen by 3%.
However, it maintained dividend payment at 28 sen based on historical DPS trends for the last four years.
In a note on Friday, the research house said BST's 1HFY15 core net profit of RM177mil is inline with market but slightly below its expectations.
"We trim our FY15-17E earnings by 6% as we lower the earnings contributions from the franchised motor vehicle segment, but maintain our Add rating with a lower target price of RM4.10.
"We continue to expect near-term earnings weakness as rising costs continues to weigh down on domestic consumer spending," it said.
It addde that the group’s 2QFY15 revenue increased by 43% on-year to RM1239bil largely driven by the consolidation of H.R. Owen Plc. This is mitigated by a 6.1% on-year decline in revenue/drawdays to RM18.4mil due to fewer drawdays in the period.
Its second Interim dividend declared at six sen a share, where it came in within Affin Hwang's expectations for FY15E (91% dividend payout).
http://www.thestar.com.my
