Stock Name: Raffles Edu
Company Name: RAFFLES EDUCATION CORP LTD
Kim Eng Research in an Aug 1 research report says: "The key issues raised during the non-deal roadshow were nothing new, mainly pertaining to dwindling student numbers, Khazanah's interest in Oriental University City (OUC) and REC's China real estate plans.
"We reckon most of these concerns have already been addressed in our earlier reports. While the near-term outlook remains a challenge in China, management is optimistic that positive contribution from its new colleges set up in the past two years or so should help to provide a turnaround in its bottomline.
"REC's share price has recovered almost 28% since our last update on July 5. Despite the uninspiring results expected of FY Jun11, we believe the group will still pay a DPS of 0.45 cents after the 3-to-1 share consolidation exercise. SOTP-based target price of 80 cents. MAINTAIN BUY."
Company Name: RAFFLES EDUCATION CORP LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 0.80 |
Kim Eng Research in an Aug 1 research report says: "The key issues raised during the non-deal roadshow were nothing new, mainly pertaining to dwindling student numbers, Khazanah's interest in Oriental University City (OUC) and REC's China real estate plans.
"We reckon most of these concerns have already been addressed in our earlier reports. While the near-term outlook remains a challenge in China, management is optimistic that positive contribution from its new colleges set up in the past two years or so should help to provide a turnaround in its bottomline.
"REC's share price has recovered almost 28% since our last update on July 5. Despite the uninspiring results expected of FY Jun11, we believe the group will still pay a DPS of 0.45 cents after the 3-to-1 share consolidation exercise. SOTP-based target price of 80 cents. MAINTAIN BUY."
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