[%TyDm%] 
Research by HLIB
Hold – TP of MYR 1.60

“Earnings beat but lacks re-rating factors” 

SPToto registered 9MFY24 core PATMI of RM156.1m (+6.4% YoY), which came in above expectations, making up 83% of our full year forecasts and 84% of consensus. The positive deviation was mainly attributed to lower-thanexpected operating costs. Hence, we increased our FY24/25/26 forecasts by 7%/2%/8% after imputing lower cost assumptions. Going forward, we expect both NFO and HR Owen to normalise in 4QFY24 after a favourable 3QFY24. Post our earnings revisions, the TP is raised to RM1.60 (from RM1.57 previously). Our DCF-derived TP is based on a WACC of 10% and TG of 1.5%. Given the limited upside, we maintain our HOLD rating on SPToto.

Analyst(s):
Chee Kok Siang
[%NbBW%]

$KLSE-BJTOTO 
Research by HLIB
Hold – TP of MYR 1.60

“Earnings beat but lacks re-rating factors” 

SPToto registered 9MFY24 core PATMI of RM156.1m (+6.4% YoY), which came in above expectations, making up 83% of our full year forecasts and 84% of consensus. The positive deviation was mainly attributed to lower-thanexpected operating costs. Hence, we increased our FY24/25/26 forecasts by 7%/2%/8% after imputing lower cost assumptions. Going forward, we expect both NFO and HR Owen to normalise in 4QFY24 after a favourable 3QFY24. Post our earnings revisions, the TP is raised to RM1.60 (from RM1.57 previously). Our DCF-derived TP is based on a WACC of 10% and TG of 1.5%. Given the limited upside, we maintain our HOLD rating on SPToto.

Analyst(s):
Chee Kok Siang
cheeks@hlib.hongleong.com.my

$BJTOTO / 1562 (BERJAYA SPORTS TOTO BERHAD)