OSK maintains 'buy' call on Berjaya Toto

OSK Research has maintained its "buy" call on Berjaya Toto (BToto) due to its defensive earnings and solid dividend
track record, as well as fair value of RM4.72.

OSK Research said the stock's net dividend yield of 6.4 per cent on a relatively conservative dividend payout assumption of 88 per cent, versus the year-to-date payout ratio of 94 per cent, make BToto an ideal investment.

Meanwhile, Berjaya Sports Toto (BST) is planning to expand its presence in the Philippines.

OSK Research said BST already had a relatively lucrative presence in the Philippines via its 88 per cent subsidiary, Berjaya Philippine Inc (BPI) that derives its revenue from an Equipment Lease Agreement (ELA) with the Philippines Charity Sweepstakes Office (PCSO).

It said however, for the PCSO's operation to be commercially viable under private ownership, the government has to enact a new law to reduce the charitable allocation of the lottery revenue from the current 30 per cent to a much lower level.

As such, OSK Research said it could be highly sensitive and controversial for the government, to allow for the enactment. -- Bernama