Berjaya Sports Toto (BUY çè)老朋友，看一看。
§ Berjaya Corp (BC) have been selected as the winning bid to undertake the investment, procurement, installation of equipment and operation of a computerized lottery system for the whole of Vietnam via Berjaya Gia Thinh Investment Technology Company Limited (Berjaya GTI).
§ We are positively surprised by the announcement and we believe it is natural and relevant for BC to collaborate with BToto to make such move given that the latter has similar expertise from Berjaya Philippines Inc (BPI).
§ We gather that the total revenue of Vietnam lottery market in 2013 reached VND58.7trn (US$2.93bn), showing a yoy growth of 7.13%.
§ Despite the insignificant effective stake of only 10.2%, we believe this could still be an advantage given better growth prospect in the country as compared to the lottery industry inMalaysia.
§ We are keeping our target price unchanged at RM4.15 based on DCF valuations. BUYrecommendation is maintained given its high dividend yield of 5.8% based on current price.
7-Eleven Malaysia Holdings Bhd (IPO)
Biggest retail sector IPO
§ 7-Eleven Malaysia Holdings Bhd (7-EH) is the leading convenience store operator in Malaysia with 82% share of the standalone convenience store segment in terms of number of stores (nearly 1,600 stores as at May 2014).
§ The IPO is expected to raise a total of RM250.3m from the Public Issue, which will be utilized to fund store expansion and refurbishment, construction of a new distribution center, and upgrade of IT systems.
§ Driven by aggressive store expansion & refurbishment plans, introduction of new products & services, and improvements in product mix, we expect 7-EH to register revenue and EPS CAGRs of 12.8% and 24.6%, respectively during FY13-16F (excluding one-off IPO expenses of RM22.8m).
§ Based on the indicative IPO price of RM1.38 per share, 7-EH’s estimated prospective PER of 20.8x to Dec 2015 is in line with the regional peer average PER of 20.3x. We therefore view 7-EH’s IPO price of RM1.38 per share as fair.