KUALA LUMPUR: CIMB Research has maintained its Hold call on Berjaya Sports Toto (BST) with a target price of RM3.62, it said in a note on Monday.
The research house said the consumer discretionary spending momentum is clearly decelerating in Malaysia and it remained concerned about the strength of the illegal market.
"BST’s share price will continue to be supported by its solid dividend yield and share buyback programme," it said.
It added that with GST, the illegal operators will have even more room to raise its payout to increase market share.
"We also expect STM to lose some market share over the longer term in its lotto games to Magnum’s new 4D Jackpot GOLD," it added.
It said BTS' annualised 1HFY04/15 net profit of RM178mil was slightly below, at 93% of the research house's full-year forecast on slower NFO sales.
Its second quarter interim dividend of six brought 1H dividends to 11.5 sen, in line with CIMB's full year DPS forecast.
"We lower FY15 EPS by 3.6% as we lower our NFO sales forecast to -4% yoy from -3% yoy," it said.
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