KUALA LUMPUR: Berjaya Sports Toto (BToto) fell as much as much as six sen to RM4.62 in early trade on March 17 as investors were disappointed with the interim dividends.

At 9.31am, it was down six sen to RM4.62. There were 56,700 shares done.

BToto declared dividend of five sen. This was a 2.85 sen single-tier exempt dividend and a 2.15 sen dividend per share tax for FY ending April 30.

HwangDBS Vickers Research said dividends could disappoint. The market has been speculating about a special dividend because parent Berjaya Land would need up to RM882 million if bondholders exercise a put option for early redemption in August.

“We think this is unlikely because BToto would not be able to pay out that much dividend (net gearing would need to increase to 370%),” it said in a research note.

HwangDBS Vickers said there were other ways for Berjaya Land to raise cash, for example asset sale and/or gearing up (net gearing: 40%).

“With dividend payout falling short of expectations, management could be holding out for bigger plans, in our opinion. We understand the entire Berjaya Group capital structure is currently under review,” it said.

The research house said it had assumed 65% dividend payout in FY09-10 and 75% thereafter.

i am interested to know as well...
and also what is the entry price for this counter?

Not necessary, If BToto needs to raise bond or singificant borrowing to fund the special large dividend, shareholders might worry about the company financial health.

Borrow to pay dividend is not a good news for shareholders.

I just read some article in OSK website talking about BJTOTO which is way back in March 2009

After read everything i also dont really get the story behind it...

BToto remains a dividend yield play given its resilient operation backed by a stable
revenue and cost structure and visible capital management policy. Its forecast
gross yield of 7.0% to 7.6% over FY09-FY10 is still among the highest among the
stocks under our coverage. We maintain a BUY call with a DDM-derived fair value
of RM5.10.

Within expectation. BToto’s annualised 9MFY09 net profit of RM404.3m was within our
full-year estimate of RM410.6m but 5.0% below consensus. Revenue growth was,
however, stronger than expected with 9MFY09 revenue contributing 82% of our full-year
forecast. Revenue growth was driven by an additional draw and relatively robust 17.5%
same draw sales growth. However, 9MFY09 earnings grew at a more subdued 5.3% as a
result of a higher average prize payout ratio. On a quarterly basis, 4QFY09 earnings
contracted 16.3% despite a 12.3% increase in revenue due to the higher prize payout.

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What's the impact of this ? Anyone know anything about Prime Gaming Philipines ? I hope its not a related party transaction like what Resort had.

You may want to consider GENTING, YTLPOWR, HAIO, MAYBULK, JTINTER, ZHULIAN. Those bold ones are paying sustainable yields.

Dont sell because VT is a tricky old goat & will keep BJTOTO price/dividend payout high for his devious inter-company schemes.