KUALA LUMPUR (June 19): Berjaya Sports Toto Bhd (BToto) shares advanced on Tuesday after the company declared a fourth interim single tier exempt dividend of 5 sen per share to be paid on August 8.
At 9.20am, BToto was up three sen to RM4.26 with 1,200 shares traded.
BToto’s net profit for the fourth quarter ended April 30, 2012 fell 12.46% to RM91.21 million from RM104.19 million a year earlier, due mainly to higher prize payout in the fourth quarter.
The company said on Monday that its revenue for the quarter rose 1.64% to RM916.13 million from RM901.31 million in 2011.
Earnings per share was 6.86 sen compared to 7.79 sen a year earlier, while net assets per share was 36 sen.
CIMB Research in a note June 19 maintained its Outperform rating on the stock with a target price of RM5.30 and said BToto’s FY4/12 core net profit was slightly ahead of expectations, at 103% of its forecast and 101% of consensus.
It said strong jackpot sales and a lower prize payout drove FY12 net profit up 15%, reversing two consecutive years of net profit decline.
“BToto’s FY12 net DPS of 27 sen translates into a net yield of 6.4%. We tweak our FY13-14 EPS forecasts up by 2-3% for FY12’s actual numbers.
“Even after the proposed divestment of Sports Toto Malaysia (STM), net yields should still hover around 4.5-5.0%, which is appealing in volatile times. Maintain Outperform and DDM-based target price,” it said.