Tuesday, June 21, 2011

BToto dips in early trade

KUALA LUMPUR: BERJAYA SPORTS TOTO BHD [] shares declined in early trade on Tuesday, June 21 despite posting a 28.8% increase in net profit to RM104.18 million in the fourth quarter ended April 30, 2011 from RM80.89 million a year ago.

At 9.15am, the stock fell eight sen to RM4.44 with 113,700 shares done.

CIMB Research in a note June 21 maintained its Neutral call on BToto and target price of RM4.75.

"BToto remains a Neutral as it lacks near-term earnings catalysts beyond the introduction of its 4D+Jackpot variant. We prefer higher-beta plays such as GENTING BHD []," said CIMB Research.

BToto's revenue in 4Q rose 5% to RM901.30 million from RM858.29 million while earnings per share were 7.79 sen versus 6.05 sen. It declared tax exempt dividend of three sen per share compared with eight sen a year ago.

For the financial year ended April 30, 2011, net profit fell 9.2% to RM348.09 million from the previous financial year's RM383.50 million. Revenue was marginally higher by 1.28% to RM3.433 billion from RM3.392 billion. The total dividends were 21 sen compared with 57.5 sen a year ago.

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