Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD
RHB Research cut its rating on SEG International Bhd to 'market perform' from 'outperform' after the education provider reported a fall in third-quarter earnings.
RHB also reduced SEG's earnings forecasts for the next two years by between 12.6 per cent and 14.7 per cent after revising student growth assumptions.
SEG's third-quarter net profit fell 13.8 percent to RM15.8 million.
The company's earnings were hit by a higher number of graduating students, while costs remained fixed and margins declined as a result, said RHB. SEG expects to recruit more students in the current quarter, for which a small recovery in earnings is anticipated, the brokerage said.
RHB reduced its target price to RM2 from RM2.20. - Reuters
Company Name: SEG INTERNATIONAL BHD
| Research House: RHB | Price Call: HOLD | Target Price: 2.00 |
RHB Research cut its rating on SEG International Bhd to 'market perform' from 'outperform' after the education provider reported a fall in third-quarter earnings.
RHB also reduced SEG's earnings forecasts for the next two years by between 12.6 per cent and 14.7 per cent after revising student growth assumptions.
SEG's third-quarter net profit fell 13.8 percent to RM15.8 million.
The company's earnings were hit by a higher number of graduating students, while costs remained fixed and margins declined as a result, said RHB. SEG expects to recruit more students in the current quarter, for which a small recovery in earnings is anticipated, the brokerage said.
RHB reduced its target price to RM2 from RM2.20. - Reuters
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