BJLand - Initiate with a HOLD recommendation. (CIMB)

Berjaya Land’s prize asset is its 43.5% stake in Berjaya Sports Toto which contributes a whopping 93% to B-Land’s FY10 EBIT, thanks to its 39.4% share of the NFO market. But its leadership in the NFO business could be challenged by rising interest in Magnum’s 4D Jackpot game. On the property front, the group has about 5,000 acres of landbank, 90% of which is foreign, raising the question of execution risk. Its loss-making club and recreation division is also a drag on the group’s bottomline. We begin coverage on B-Land with a HOLD recommendation and an SOP-based target price of RM1.24, which works out to 38.3x CY12 P/E. Investors can get direct exposure to its gaming business through B-Toto while for property exposure, they can opt for our top pick Mah Sing.