Berjaya Sports Toto – Look past the Kedah fiasco for high dividend yields (BST MK, CP MYR1.96, BUY, TP MYR2.29, Gaming)
BST generated a 1QFY6/22 net loss following the FMCO but we had expected this. Positively, BST declared a first interim DPS of 1.0sen when we had expected none due to the aforementioned net loss. We expect STM NFO sales to recover going forward even with the Kedah ban. Maintain our earnings estimates, dividends estimates and MYR2.29 DCF-based TP. We continue to like BST as a laggard recovery play which offers high dividend yields (>7% p.a. from FY23E onwards).