2017年3月8日星期三

The larger beneficiary is Berjaya Corporation


Author: koko888   |   Publish date: Wed, 13 Jul 2016, 10:11 AM 



KUALA LUMPUR: Maybank Investment Bank Research has maintained its Hold call on Berjaya Sports Toto (BToto) with a target price of RM3.15.

It said on Tuesday the Berjaya Gia Thinh Investment could garner RM521.9mil in net profit per annum during its steady state.

Berjaya Gia Thinh  is 51%-owned by Berjaya Lottery Vietnam, which in turn is 80%-owned by Berjaya Corporation and 20%-owned by BST. The effective shareholding of Berjaya Corporation and BToto
in Berjaya Gia Thinh  are 41% and 10% respectively.

State-owned Vietnam Computerized Lottery One Member (Vietlott) owns the remaining 49%-shareholding.

Berjaya Gia Thinh is expected to invest US$210.6mil or RM842mil over 18 years.

"We estimate the net profit accretion will be RM208.7mil to Berjaya Corporation and RM52.2mil to BToto," it said.

It believes that the larger beneficiary is Berjaya Corporation due to its larger 41% shareholding in Berjaya Gia Thinh.

Maybank Research said the Vietnam lottery industry is worth US$3bil or RM12bil per annum.

"We are positive on this development but are unsure as to when Berjaya Gia Thinh will reach steady state and thus, contribute materially to BToto.

"Even then, BToto’s 10% shareholding in Berjaya Gia Thinh will likely be recognised as an investment only," it said.

The research house added that BToto’s share of investment is only RM84mil or 16% of its end-FY4/16 cash balance and spread out over 18 years at that.

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