Stock Name: Raffles Edu
Company Name: RAFFLES EDUCATION CORP LTD
Maybank-Kim Eng Research in a Feb 9 research report says: "Stripping out the one-off gain of $9.0 million from the disposal of available-for-sale financial assets, Raffles Education Corp's (REC) 2QFY Jun12 results were slightly below our expectations.
"Net profit fell by 10% y-o-y to $3.5 million, dragged down by other operating costs arising from property and land use tax expenses of $2.2 million during the quarter. Despite the uninspiring results, interim dividend per share was raised to 0.5 cents from 0.45 cents last year. Turnover grew by 14% y-o-y in Asia Pacific (ex-China) to $16.7 million, accounting for 45% of the group's overall revenue.
"The stock currently trades near its NTA per share of 51 cents, suggesting that investors are getting REC's education business at a steal. We lower our SOTP-based target price to 65 cents, from 80 cents. MAINTAIN BUY."
Company Name: RAFFLES EDUCATION CORP LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 0.65 |
Maybank-Kim Eng Research in a Feb 9 research report says: "Stripping out the one-off gain of $9.0 million from the disposal of available-for-sale financial assets, Raffles Education Corp's (REC) 2QFY Jun12 results were slightly below our expectations.
"Net profit fell by 10% y-o-y to $3.5 million, dragged down by other operating costs arising from property and land use tax expenses of $2.2 million during the quarter. Despite the uninspiring results, interim dividend per share was raised to 0.5 cents from 0.45 cents last year. Turnover grew by 14% y-o-y in Asia Pacific (ex-China) to $16.7 million, accounting for 45% of the group's overall revenue.
"The stock currently trades near its NTA per share of 51 cents, suggesting that investors are getting REC's education business at a steal. We lower our SOTP-based target price to 65 cents, from 80 cents. MAINTAIN BUY."
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