KUALA LUMPUR: Berjaya Corp Bhd (BCorp) yesterday bucked the broader market trend to close higher by four sen at RM1.26 on news that its Vietnamese unit may obtain a gaming licence.

It rose to an intra-day high of RM1.28 with a total of 4.25 million shares changing hands for the day.

In this week’s edition, The Edge weekly reported that BCorp’s 80%-owned subsidiary Berjaya Lottery Vietnam Ltd (BLVL) could obtain the first such permit for operations in the country.

The remaining 20% of BLVL is said to be held by Berjaya Sports Toto Bhd (BToto), BCorp’s gaming arm. BToto rose to an intra-day high of RM4.27 before closing at RM4.24, up two sen from the previous trading day’s close, with a total of 826,800 shares traded.

At present, it is still unknown whether the licence would be for the lottery or for a numbers forecast operator (NFO), which offers 4D and lotto games. The Edge report also added that analysts were presently uncertain about BCorp’s venture into Vietnam due to a number of pending issues.

This included the fact that the gaming industry there is fragmented and decentralised with the lottery system carried out by provincial governments.  Analysts and industry observers in Vietnam were reported to have said that things may not be easy for BCorp in the country as the lottery provided part of the government’s earnings, and that a joint venture would be preferable.

The report also said no private companies were allowed to operate the lottery in Vietnam, and that there were various limitations on electronic gaming, such as it only being allowed on three- or four-star hotels that were licensed by the government, and that only foreigners or overseas-dwelling Vietnamese were allowed to play electronic games provided by licensed operators.

Despite this, the report also said there was no restriction on the locals with regard to gaming activities and that it remained to be seen whether BCorp would be successful in its foray into the Vietnamese gaming market. BCorp shares rose to its 52-week high at RM1.33 on Jan 14, 2010, and its 52-week low was seen on March 10, 2009 at 45 sen.  In the last 12 months, BCorp has seen one buy call and one hold call from analysts, at an average target price of RM1.73.

The group posted a strong net profit of RM52.8 million in its second quarter ended Oct 31, 2009, a fivefold jump from its net profit a year earlier.


This article appeared in The Edge Financial Daily, February 9, 2010.