KUALA LUMPUR: Affin Hwang Capital research is sceptical over the sustainability of Berjaya Sports Toto Bhd 's growing market share from the recent crackdown on illegal operators.
In a note, the research house maintained its sell call on the counter with an unchanged target price of RM2.10 as it cautioned that government enforcement efforts may not be able to sustain the intensity of the crackdown.
"We also believe that future enforcement would be more challenging, as illegal operators are moving their operation online from physical establishment.
"Some punters still prefer the illegals due to their higher payouts," it said.
Meanwhile, Berjaya Sports Toto's management said in a briefing that the Philippines Charity Sweepstake Office had initiated a new tender for the leasing of lottery equipment.
Berjaya Philippines will submit a bid for the contract for the supply for the whole Philippines instead of just the Luzon region.
"Their current leasing contract is expected to be completed by this year, and we believe that the new pricing is likely to be lower than the current one, assuming they win the bid.
"Results of the bid will likely to be known by end of the year," said Affin Hwang.
https://www.thestar.com.my/business/business-news/2019/07/05/berjaya-sports-totos-growth-may-be-unsustainable-says-affin-hwang/
