BJToto- a good income stock

Results Update

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.