Sports Toto Bhd has been on a winning streak. Over the last 5 days, the number forecast operator rose 5.8% to close at RM1.64 on June 20. In the past year, it gained 18%, touching a high of RM1.68 versus a low of RM1.21.
A new short-term uptrend may be underway with follow-through buying lifting prices towards the resistance at RM1.68 and RM1.83 next. Investors like Sports Toto for its dividend yield, which is still relatively high at 5.4%.
It used to offer annual dividend yields of 7.1%, which was more than the yield on 10-year Malaysian Government Securities of 3.9%. The last time there was a spike in Sports Toto share price was in May after it reported quarterly results that came in stronger than expected. The counter rose to its highest in 18 months at that time to touch a high of RM1.67.
Core net profit for the nine months ended March 31, 2024 (9MFY2024) accounted for more than 80% of the consensus full-year forecast. However, many analysts were doubtful of further upside to Sports Toto's share price, and flagged that earnings growth may ease ahead.
Sports Toto’s lottery segment benefited from seasonally stronger sales, but this is likely to normalise in the fourth quarter ending June 30, 2024 (4QFY2024). Sales volume for the car dealership business may also normalise in 4QFY2024, adding that the segment could continue to be affected by high financing costs in the UK. It also had to deal with higher depreciation and operating costs.
Shares in Sports Toto have risen amid a strong recovery of the lottery segment, while its luxury car retailing unit HR Owen plc benefited from the number plate change month. This was despite tough economic conditions in the UK.
According to analysts, Sports Toto’s lottery business had largely recovered, with the gap between pre- and post-pandemic sales per draw narrowing to about 5%. The company recently reported a net profit of RM68.45 million in 3QFY2024 compared with RM23.22 million a year earlier.
Revenue inched up 2.4% to RM1.69 billion from RM1.66 billion, according to a bourse filing. For 9MFY2024, net profit dropped 4.2% to RM152.83 million from RM159.58 million. The company's nine-month top line, however, rose 3.9% to RM4.66 billion from RM4.48 billion previously.
Some of these numbers are quite encouraging given tough operating environment. But just like most companies, costs are escalating and those which can weather this trying times will come out stronger.
Created by zaclim | Jun 25, 2024
THPLANT is among the first oil palm planter to go into renewable energy. Although it will take a while before it turns into fruition, investors are not missing a beat and join the renewable ride.
Created by zaclim | Jun 24, 2024
With booming prospects in the construction sector in Malaysia and Singapore, the company is set to grow further.
Created by zaclim | Jun 19, 2024
Gadang Holdings Bhd appears to be heading new territory as its share price moved towards its new 52-week high of 52 sen recently. Can the upward momentum be sustained?
Created by zaclim | Jun 13, 2024
Censof Holdings Bhd is on a good run, gaining close to 20% in just over two days. Has investors missed the boat or can they still make some trading profits from this counter?
Created by zaclim | Jun 12, 2024
Edelteq Holdings Bhd has seen a surge in its share price to reach a 10-month high recently. Can the upswing continue
Created by zaclim | Jun 11, 2024
Pantech has made good ground in terms of share price, rising close to 50% in the past year. While it posted disappointing results recently, it will likely ride on the expected elevated crude oil price
Created by zaclim | Jun 10, 2024
Evergreen Fibreboard Bhd has shown signs of a bullish momentum and could see it move closer to its year high of 38 sen. Question is when it can move beyond that level.
Created by zaclim | Jun 10, 2024
Inta Bina has seen surge in share price recently after bagging RM112 million job. The size of the job may not be so huge but collectively with 5 new jobs this year alone, the future looks promising
Created by zaclim | Jun 10, 2024
Datasonic Group Bhd touched a new 3-year high on June 7. Indications are that the counter is likely to continue to surge upwards given its improving financials. Time to get your hands in this counter?