BJToto has just announced its results for QE31/10/2011 where its net profit improved by 15% q-o-q or 62% y-o-y to RM106 million while its turnover was only 2% higher both q-o-q & y-o-y to RM862 million.
Table: BJToto's last 8 quarterly results
Chart 1: BJToto's last 29 quarterly results
Valuation
BJToto (closed at RM4.19 at the end of the morning session) is now trading at a PE of 13.5 times (based on the last 4 quarters' EPS of 31.17 sen). BJToto could potentially trade up to a PE of 15 times; thus giving an upside of 10%. Its dividend yield is fairly attractive at 6.0% pa.
Technical Outlook
BJToto is in an uptrend line, with support at RM4.10. Its share price is trapped within a triangle with support at RM3.95-4.00 & resistance at RM4.55-4.60.
Chart 2: BJToto's monthly chart as at Dec 1, 2011 (source: Tradesignum)
Conclusion
Based on continued good financail performance, attractive valuation & mildly positive technical outlook, BJToto remained a good stock for long-term investment, especially for those seeking steady income. It certainly beats putting money in a Fixed Deposit account.
5 comments:
Alex,
Could you comment on current market outlook?
Thanks
it's mentioned that Bjtoto's fate is closely linked to the current ruling government. do you think a change in the federal government would change your view on this stock?
HI mgtg12,
I don't think the outcome of the next election would affect BJToto in anyway. I am not convinced that PR -IF it can win- would change any laws regarding the existing gaming or gambling businesses.
Hi Jessy
I will write something on that today or tomorrow.
Hi Alex,
Given the improved earnings of BJTOTO, what is the outlook for BJCORP and is it a good time to accummulate this share?
Thanks.
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