BToto (BUY)
Expanding
into the Philippines
- According to The Edge Weekly, BToto is said to be looking to expand its operations in the Philippines by potentially acquiring a stake in the Philippines Charity Sweepstake Office (PCSO).
- BToto is currently supplying and maintaining a computerized online lottery system and provides software support to PCS via its subsidiary, Berjaya Philippines Inc. In return, it gets a cut from PCSO’s ticket sales.
- We believe that this is to expand its coverage, giving itself a growth catalyst in the coming years while the market for number forecast operators (NFO) in Malaysia has matured.
- This would help BToto to expand its penetration into the overseas gaming market. However, the benefit of venturing into the international market comes with its risks. Past records showed that local NFOs such as Tanjong and Magnum have attempted to venture into overseas market but ended up recording provisions.
- We remain our forecast with TP of RM4.92. Maintain Buy.
Source: HLIB Research - 16 April 2012
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