BJToto reported a better set of results for QE31/1/2011. Its net profit increased by 77% q-o-q or 17% y-o-y to RM115 million while its turnover was relatively unchanged at about RM851 million. The higher net profit was attributable to higher profit contributed by Berjaya Philippines Inc. & sharply higher profit by Sport Toto due to a lower prize payout in the current quarter. The impact on the current quarter from the increase in Pool Betting Duty from 6% to 8% that was effective 1 June 2010 was mitigated by the reduction in the 4D Big Special Prize from RM200 to RM180 per RM1 bet with effect from 15 December 2010.
Table 1: BJToto's last 8 quarterly results
Chart 1: BJToto's last 26 quarterly results
Valuation
BJToto (closed at RM4.09 yesterday) is now trading at a PE of 12 times (based on annualized EPS of 34 sen). At this PE multiple, BJToto is deemed fairly attractive. With the slide in its net profit halted, BJToto could command a PE multiple of 14-15 times again.
Technical Outlook
BJToto is now resting at its long-term uptrend line support of RM4.00.
Chart 2: BJToto's weekly chart as at Mar 15, 2011 (Source: Tradesignum)
Conclusion
Based on improved financial performance, attractive valuation & technical outlook, BJToto is a good stock for long-term investment.
9 comments:
hi,
how do you see MISC? been dropping a lot lately...anything to do with japan earthquake?
thanks
maxwealth88
Thanks for sharing, bro .
What's is the career path to be a remisier/ dealer's representative?
What was the challenge will face by dealer's representative & how to solve it ?
agree with u, bro! Bjtoto can be a good long term investment especially after they announce to give dividends!
Do you notice that Vincent Tan is acquiring BJTOTO for months? What is the possible intention of doing so?
Hi MaxWealth88
MISC has good support at the horizontal line of RM7.50. Its resistance is at the psychological RM8.00 level as well as the horizontal line of RM8.20.
Despite the unexciting results (due largely to poor dry bulk freight rates), MISC's share price is expected to trade within the RM7.50-8.00 band for the medium-term due to buying support from local funds. It's a good trading stock- buy at RM7.50 (or even RM7.00 in the event the RM7.50 support failed) & sell at RM8.00-8.20.
Hi Ivan
It is hard to answer your query about the career prospect of remisier or dealer's representative. It will take up too much space. Sufficient to say that it's a vocation that suffers from fierce competition & a continuous reduction in our commission or brokerage rate. However, if you can offer good services, I believe you can earn a decent income. How to do that? Well, a remisier has to continuously update himself & be well-informed about everything that might impact share prices & the clients' investment (such as the economy, the various industries, etc).
Hi Marco
What is the possible intention for Vincent Tan steadily acquiring BJTOTO over the past few months? I think there is only one reason why anyone- especially the major shareholder- buying into his stock. He obviously thinks that the stock is worth more than the current market price.
Thx a million for the reply.
Will try invest @ bjtoto prior 2Q P&L is out ^_^
Bet on the special dividend- for bjland pay debt .. maybe 30c
Post a Comment