Berjaya Sports Toto Upgraded to Buy

BJTOTO Stock Code 1562
(RM4.64; Buy; Price Target: RM5.20)

New growth driver
•  Malaysia’s first legalized sports betting in Aug/Sep10, via BST’s 220 outlets and telephone
•  Agency fees (estimated 1% of sales) could boost BST’s FY10-12 earnings by 2-7%
•  Sports betting and potential Vietnam NFO licence may be next earnings growth drivers 
•  Upgrade to Buy, TP raised to RM5.20 based on DCF

by HWDBS Vickers

Berjaya Sports Toto Bhd is an investment holding company that provides management services. The principal activities of its subsidiary companies are Property development; Investment holding and trading in marketable securities; Toto betting operations; Trading in sports equipment and other related products; and Computer service for Toto betting operations