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July 21, 2020

Berjaya Sports Toto sees sales recovery

KUALA LUMPUR: Berjaya Sports Toto Bhd is seeing a sales recovery as footfall continues to return to its outlets after reopening a month ago.

Maybank Investment Bank Research said sales have been recovering at a rate of 4% to 5% a week, with the latest sales at 75% to 80% of pre-closure levels.

It added that Berjaya Sports Toto hopes to drive sales to pre-closure levels soon despite fewer foreigners betting due to the government continuing to restrict their movement while locals are betting more with illegal numbers forecast operators.

“We trim our EPS estimates by 2-8%, DPS estimates by 0-7% and SOP-based TP by 3% to MYR2.80 even though we roll forward our valuation base year to end-FY6/21E from end-FY6/20E.

The research house kept its “buy” call on the stock and trimmed its target price to RM2.80 from RM2.88 previously.

In other operations, Berjaya Sports Toto’s 88%-owned motor dealership in the UK, HR Owne, reopened on June 1 but has experienced slow sales.

However, the group also expects luxury car sales to recover faster than mainstream one.

In the Philippines, 35%-owned Philippine Gaming Management Corp (PGMC) remains shut while there is no update on PGMC’s bid to manage the nationwide online lottery system.

 

Photo and news source: thestar.com.my

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