Hi Folks. This isn't life in the fast lane, it's life in the oncoming traffic.
COMPANY UPDATE
SPTOTO (OP ↔; TP: RM2.13 ↔). Only Yield Can Make the Darkness Bright. Sports Toto guided for its ticket sales to only return to 80−85% of pre-pandemic levels over the near term given only moderate economic growth amidst high inflation that eats into consumers’ spending power. However, the upside surprise could come from a spike in ticket sales in the event of a jackpot snowballing. We continue to like SPTOTO for its attractive dividend yield of >9%. We maintain our forecasts, TP of RM2.13 and OUTPERFORM call.
PWROOT (OP ↑; TP: RM2.35 ↑). Caffeine Charged. Power Roots’ export markets are seeing accelerated recovery post-pandemic while domestic demand appears to be sustaining despite rising inflation. Input cost hikes look well contained given the forward buying of creamer and coffee beans into March 2023 after which their prices are likely to come off. We raise our FY23F and FY24F earnings by 29% and 11% respectively and increase our TP by 24% to RM2.35. Upgrade to OUTPERFORM.
- Kenanga
Trade at your own risk. All the information made available here is generally provided to serve as an example only, without obligation and without specific recommendations for action.
