Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD
Research House: OSK

KUALA LUMPUR: OSK Research said BERJAYA SPORTS TOTO BHD [] 1HFY11 numbers fell below expectations, largely due to higher prize payouts, pool betting duties and corporate taxes.

In a research note issued on Monday, Dec 13, it said BToto remains committed to maintaining its high payout policy, as evident from 1HFY11's 124% net dividend payout ratio.

'Nonetheless, we are tweaking downwards our dividend payout assumption in tandem with the reduction in our earnings estimates for FY11, for which we are projecting a payout ratio of 95%.

'Consequently, we are reducing our DDM derived target price from RM4.86 to RM4.65 but maintain our BUY recommendation as the stock's current net dividend yield of 5.8% is still one of the highest among the stocks under our coverage,' it said.