BJTOTO (1562) – Berjaya Sports Toto Bhd. Don’t need introduction, there are other “gambling” stocks, but I select BJTOTO today because in my opinion there is a good value waiting for us.

Many people argue, its not a good time to buy, because of FMCO/MCO, shops closed etc. but if you see the chart and use a common sense, you will realize that it is priced already and share is trading at a good discount. We know FMCO can not stay here forever and for sure BJTOTO will get back on its track - and it will happen for sure! Since many people having financial difficulties, some even lost jobs, its safe to assume more people will gamble (sorry “betting”, right?), it is how things are, sad or not its reality.

As you can see, technically it is on a good entry level, price is depress – we know why, FMCO, right?

But how about financials right now and going into the future?

BJTOTO is a dividend play, as you can see during the last year, even with COVID around, the company managed to pay 10.4 sen dividend which equals to nice 5.2% DY, this year they have paid already 8 sen for 3QRs only. Again remember all this is during covid trouble and lock downs.

For us is important just one thing now – how will they do in the future? Lets assume their results will be close to the best QRs during COVID, around 4.5 sen per QR it gives us full year EPS of 18 sen, which again in my opinion will be very easy to get for them, resulting in a nice P/E Ratio of 8.95.

Since this is a dividend play with high payout, P/E in this case can be easily above 12, giving us potential fair valuation of RM 2.16 + a nice dividend up to 15 sen which is 7.5% DY (based on current market price)

Prefer GOLD? See my post on TOMEI.

More posts on my BLOG.

Disclosure: Im holding BJTOTO

Disclaimer: Im not a professional financial advisor or a financial analyst or an economist or an accounter.
This is not a trading recommendation / advise, just my personal view