Stock Name: RafflesEdu
Company Name: RAFFLES EDUCATION CORP LIMITED
Research House: Kim Eng
Company Name: RAFFLES EDUCATION CORP LIMITED
Research House: Kim Eng
Kim Eng Securities downgrades Raffles Education (E6D.SG) to Hold from Buy, cuts target price to $0.30 from $0.48 after lowering FY11-13 EPS estimates by 25% to factor in more conservative growth in student enrolment, according to Dow Jones.
New target based on 20x FY11 P/E, in line with historical mean. Kim Eng Securities says fiscal FY10 earnings of $52.6 million (+2.8%) below market expectations; “we are getting concerned about the persistently weak student enrolment in China”.
Broker notes plan to set up new universities in Malaysia, India, Australia has “somewhat dampened any prospects of an early resumption in dividend payout.” Shares flat at $0.29.
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