The research house, which has a "buy" call on the stock, said 1HFY21 core profit of RM132.9mil was broadly within expectations at 67% and 64% of its and consensus full-year forecasts.
"This is also because we expect 2HFY21 earnings to be impacted by the temporary outlet closures in January-February due to MCO 2.0, and normalisation of the luck factor," it said.
Berjaya Sports Toto ticket sales have recovered to about 75% of pre-pandemic levels versus about 20% when most outlets except Sarawak were closed between Jan 13 and Feb 15 due to MCO 2.0.
"We expect the strong recovery to continue, given the inelastic nature of its business.
"As for its UK arm, its motor dealership business is expected to be affected by the third national lockdown imposed since Jan 2021. Nonetheless, it should be mitigated by the group’s diligent cost management, as evidenced in 1HFY21," said RHB.
The research house maintained its target price at RM2.49 with no changes to its earnings forecasts.
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