Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: NETRESEARCH | Price Call: HOLD | Target Price: 0.67 |
Showing posts with label MEGB. Show all posts
Showing posts with label MEGB. Show all posts
June 26, 2012
RHB ups Masterskill to 'market perform'
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
RHB Research upgraded Masterskill Education Group Bhd to "market perform" from "underperform" as it believes there is limited downside going forward given that the share price is close to its all-time low of 0.87 per share.
"We believe that much of the bad news is already in the price," the research house said in a note on Tuesday.
RHB said it estimated a smaller net loss of RM0.7 million for 2012 and net profit of RM4.7 million and RM10.4 million for 2013 and 2014 respectively after reviewing their student growth assumptions upwards.
It also raised Masterskill's fair value to RM0.88 a share from RM0.85.
By 1006 am (0206 GMT), shares of Masterskill remained unchanged at RM0.88 a share, outperforming the Malaysia's benchmark stock index's 0.17 percent rise. -- Reuters
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: RHB | Price Call: HOLD | Target Price: 0.88 |
RHB Research upgraded Masterskill Education Group Bhd to "market perform" from "underperform" as it believes there is limited downside going forward given that the share price is close to its all-time low of 0.87 per share.
"We believe that much of the bad news is already in the price," the research house said in a note on Tuesday.
RHB said it estimated a smaller net loss of RM0.7 million for 2012 and net profit of RM4.7 million and RM10.4 million for 2013 and 2014 respectively after reviewing their student growth assumptions upwards.
It also raised Masterskill's fair value to RM0.88 a share from RM0.85.
By 1006 am (0206 GMT), shares of Masterskill remained unchanged at RM0.88 a share, outperforming the Malaysia's benchmark stock index's 0.17 percent rise. -- Reuters
February 29, 2012
MEGB (FV RM0.84 - SELL) FY11 Results Review: A String of Misfortunes
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: OSK | Price Call: SELL | Target Price: 0.84 |
Masterskill's FY11net profit of RM38.1m was way below consensus and our forecasts, only making up 82.0% of both full-year estimates. The company sank intothe red in 4QFY11 as enrolment weakenedand operating and depreciation expenseswent up. We cut our FY12 earnings estimate further by 2.8% as we turn increasinglycautious on potentially weaker enrolment growth on stiff competition.
Maintain SELL.Our FV is now RM0.84, based 7x FY12 PER. A big letdown. Masterskill's FY11revenue of RM250.2m was 20.8% lower y-o-y due to weaker student intake resulting from tightening of the minimumentry requirements for diploma in nursing programs from 3 to 5 credits, as wellas the cap on loans to nursing students imposed by National Higher EducationFund (PTPTN) from RM60k to RM45k. Correspondingly, EBIT sank by an even larger63.8% y-o-y to RM41.7m as depreciation charges spiked up in tandem with itscapex rollout. The FY11 core earnings dived 62.0% to RM38.1m, helped only by alower effective tax rate during the year. The 4QFY11 numbers contracted sharply q-o-q and y-o-y, with EBIT andcore earnings sinking into the red for the first time since the company'slisting in mid-2010, with losses of RM2.9m and RM1.6m respectively. Weattribute the dismal performance to the anaemic student growth as PTPTN isrumored to be cutting its loan allocation for nursing programmes in light ofthe widely reported oversupply of nurses.
Dividend the soleconsolation. Despite the subpar quarterly performance, the company declared a second interim DPS of1.4 sen, bringing its FY11 DPS to 5.6 sen. This implies a payout ratio of60.2%, for a decent 5.4% yield. Dearth of catalysts. The poor results vindicateour earlier concerns that Masterskill may be cracking under the weight of rising competition and increasingly stringent PTPTN requirements.Given the dearth of re-rating catalysts for now, we continue to see a difficult 1HFY12 due to subpar new sign-ups. Although its proposed collaboration with RMIT, Australiahas secured Ministry of Higher Education approval, we remain skeptical on thenear term accretion to earnings given the company's poor execution record.
SELL. We arerevisiting our model and cutting our FY12 student growth further by 1.2% afterour last downgrade in Nov 2011. With our FY12 EPS now at 12.0 sen (-2.8% from 12.6sen previously), we take this opportunity to introduce our FY13 forecasts. Allin, our bearish stance on the counter stays. Hence, we maintain SELL, at a revised FV of RM0.84, based on a lowerFY12 PER of 7x (from 8x previously), considering that Masterskill's worst ever quarterly performance since going public will spook investors. We will take a re-look at our assumptionsshould its venture into non-healthcare courses in partnership with RMIT bearsfruit.
Source: OSK188
Masterskill Education Group - Flunking the test
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: CIMB | Price Call: SELL | Target Price: 0.82 |
Target RM0.82
Masterskill's FY11 results were a letdown because of unexpected losses in 4Q. The dwindling of student numbers is expected to persist in 2012, underpinning a likely deceleration in earnings and margins. Dividends
are still the draw but sustainability is in question.
are still the draw but sustainability is in question.
MEGB - 4Q11 slips into the red
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Masterskill Education; Fully Valued; RM1.04
Price Target: RM0.70; MASEG MK
4Q11 turned in an unexpected RM1.6m net loss. No catalyst in sight, with new student intakes remaining weak in the near term. Maintain Fully Valued and RM0.70 TP (pegged to 10x FY12F EPS).
Source: HwangDBS Research 29 Feb 2012
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: HWANGDBS | Price Call: SELL | Target Price: 0.70 |
Masterskill Education; Fully Valued; RM1.04
Price Target: RM0.70; MASEG MK
4Q11 turned in an unexpected RM1.6m net loss. No catalyst in sight, with new student intakes remaining weak in the near term. Maintain Fully Valued and RM0.70 TP (pegged to 10x FY12F EPS).
Source: HwangDBS Research 29 Feb 2012
February 20, 2012
Masterskill Education - No catalyst in sight
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Masterskill Education; Fully Valued; RM1.16
Price Target: RM0.70; MASEG MK
FY11-13F earnings cut by 6.6%-7.1% after trimming new student intakes. News of jobless nurses could dampen new enrolments in nursing courses. Maintain Fully Valued with RM0.70 TP (pegged to 10x FY12F EPS).
Traders Spectrum ' From the Chartroom
The FBM KLCI settled at 1,557.15 on Friday for a weekly decline of 4.5-point or 0.3%. Technically speaking, the benchmark FBM KLCI will probably show resilience before resuming its uptrend towards the psychological threshold of 1,600 going forward.
Source: HwangDBS Research 20 Feb 2012
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: HWANGDBS | Price Call: SELL | Target Price: 0.70 |
Masterskill Education; Fully Valued; RM1.16
Price Target: RM0.70; MASEG MK
FY11-13F earnings cut by 6.6%-7.1% after trimming new student intakes. News of jobless nurses could dampen new enrolments in nursing courses. Maintain Fully Valued with RM0.70 TP (pegged to 10x FY12F EPS).
Traders Spectrum ' From the Chartroom
The FBM KLCI settled at 1,557.15 on Friday for a weekly decline of 4.5-point or 0.3%. Technically speaking, the benchmark FBM KLCI will probably show resilience before resuming its uptrend towards the psychological threshold of 1,600 going forward.
Source: HwangDBS Research 20 Feb 2012
January 10, 2012
Near-Term Rerating Catalysts Fade
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: OSK | Price Call: SELL | Target Price: 0.99 |
November 21, 2011
Masterskill 3QFY11 continues to disappoint
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Masterskill Education Group Bhd
(Nov 21, RM1.16)
Maintain fully valued at RM1.20 with revised target price of 70 sen (from RM1.20): Masterskill's 3QFY11 net profit plunged 78.8% year-on-year (y-o-y) and 52.1% quarter-on-quarter (q-o-q) to RM5.5 million. This brings 9MFY11 net profit to RM39.7 million or 52.5% of our initial full-year estimate, way below expectation. Revenue for 3QFY11shrank to RM61.2 million (-24.1% y-o-y, -7% q-o-q) on the back of weak new student intake (1,800 year-to-date, below the circa 3,000 students that graduated in September 2011). This, coupled with rising overhead costs (attributable to teaching staff, depreciation and other administration costs), dragged down operating margin to 15.9% (3QFY10: 40.7%, 2QFY11: 15.4%).
Masterskill has been struggling to draw in more new students due to: (i) a more competitive health science education landscape; (ii) a shift in industry trend whereby fewer students are pursuing diploma courses in private education institutions; (iii) lower National Higher Education Fund (PTPTN) funding limit; and (iv) higher minimum entry requirement for nursing programmes.
Following the disappointing 3QFY11, we have cut FY11F to FY13F earnings by 38% to 43% as we factor in lower new student intakes of 2,100 (from 4,000) in FY11F and 4,500 (from 5,100) in FY12F (when there could be a higher number of new students for its degree programmes and new courses as Masterskill embarks on fresh initiatives to diversify its income profile).
We have also trimmed our dividend payout assumption to 40% (from 50%), which translates to dividend per share of 4.4 sen (of which 4.2 sen has just been declared) or a prospective 3.7% net yield for FY11F. Masterskill may want to conserve cash for its capital expenditure requirements amid a weak earnings outlook. Maintain 'fully valued' with a revised target price of 70 sen (from RM1.20) based on nine times FY12F earnings per share with support from its existing net cash balance of RM121.6 million, or 30 sen per share. ' HwangDBS Vickers Research, Nov 21
This article appeared in The Edge Financial Daily, November 22, 2011.
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: HWANGDBS | Price Call: SELL | Target Price: 0.70 |
Masterskill Education Group Bhd
(Nov 21, RM1.16)
Maintain fully valued at RM1.20 with revised target price of 70 sen (from RM1.20): Masterskill's 3QFY11 net profit plunged 78.8% year-on-year (y-o-y) and 52.1% quarter-on-quarter (q-o-q) to RM5.5 million. This brings 9MFY11 net profit to RM39.7 million or 52.5% of our initial full-year estimate, way below expectation. Revenue for 3QFY11shrank to RM61.2 million (-24.1% y-o-y, -7% q-o-q) on the back of weak new student intake (1,800 year-to-date, below the circa 3,000 students that graduated in September 2011). This, coupled with rising overhead costs (attributable to teaching staff, depreciation and other administration costs), dragged down operating margin to 15.9% (3QFY10: 40.7%, 2QFY11: 15.4%).
Masterskill has been struggling to draw in more new students due to: (i) a more competitive health science education landscape; (ii) a shift in industry trend whereby fewer students are pursuing diploma courses in private education institutions; (iii) lower National Higher Education Fund (PTPTN) funding limit; and (iv) higher minimum entry requirement for nursing programmes.
Following the disappointing 3QFY11, we have cut FY11F to FY13F earnings by 38% to 43% as we factor in lower new student intakes of 2,100 (from 4,000) in FY11F and 4,500 (from 5,100) in FY12F (when there could be a higher number of new students for its degree programmes and new courses as Masterskill embarks on fresh initiatives to diversify its income profile).
We have also trimmed our dividend payout assumption to 40% (from 50%), which translates to dividend per share of 4.4 sen (of which 4.2 sen has just been declared) or a prospective 3.7% net yield for FY11F. Masterskill may want to conserve cash for its capital expenditure requirements amid a weak earnings outlook. Maintain 'fully valued' with a revised target price of 70 sen (from RM1.20) based on nine times FY12F earnings per share with support from its existing net cash balance of RM121.6 million, or 30 sen per share. ' HwangDBS Vickers Research, Nov 21
This article appeared in The Edge Financial Daily, November 22, 2011.
RHB Research maintains Underperform on Masterskill, unch FV RM1.05
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
KUALA LUMPUR (Nov 21): RHB Research Institute is maintaining its Underperform call on Masterskill Education Group Bhd.
It said on Monday that its fair value is unchanged at RM1.05, based on a target FY12 PER of 8.5 times.
'We believe that Masterskill's lower earnings trend will continue into 1H12 as Masterskill continues to incur higher operating costs in line with its expansion,' it said.
RHB Research said although Masterskill should not be affected by the recent proposed changes to the PTPTN loans, with around 96% students taking the loans, Masterskill is susceptible to future changes in the loans.
'Furthermore, Masterskill's high foreign shareholding of 46.4% continues to expose the company to volatile portfolio flows,' it said.
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: RHB | Price Call: SELL | Target Price: 1.05 |
KUALA LUMPUR (Nov 21): RHB Research Institute is maintaining its Underperform call on Masterskill Education Group Bhd.
It said on Monday that its fair value is unchanged at RM1.05, based on a target FY12 PER of 8.5 times.
'We believe that Masterskill's lower earnings trend will continue into 1H12 as Masterskill continues to incur higher operating costs in line with its expansion,' it said.
RHB Research said although Masterskill should not be affected by the recent proposed changes to the PTPTN loans, with around 96% students taking the loans, Masterskill is susceptible to future changes in the loans.
'Furthermore, Masterskill's high foreign shareholding of 46.4% continues to expose the company to volatile portfolio flows,' it said.
September 29, 2011
Waning optimism in the coming quarter
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Education sector
Downgraded to neutral: We are turning cautious on prospects for the education sector in the coming quarter given rising macroeconomic headwinds; illiquidity of the stocks in the sector; the relatively small market cap of the education stocks (less than RM1 billion); and high foreign shareholdings for HELP (12.5%) and Masterskill (49%), increasing their susceptibility to volatile portfolio flows. ''
We see few re-rating catalysts for the sector over the coming quarter. Previously, the sector was driven by ETP news flow. However, the excitement is now beginning to recede, as reflected in the uninspiring share price performance of the stocks in the sector. Entry point projects (EPP) involving SEGi such as the establishment of the Early Childhood Care and Education (ECCE) hub and the SkillsMalaysia INVITE programme are already under way, while the announcement of the gradual liberalisation of the education sector under the Strategic Reform Initiatives (SRI) is already priced in.
Risks include further regulatory changes; increase in competition; and slowdown in demand for private higher education as consumers could turn cautious on multi-year commitments to course fees.
Across the board, we are cutting our target FY12 PER for the stocks by one to two times, in line with RHBRI's lower target PER of 13 times (from 14 times).
Our previous valuations look overly optimistic given the more bearish macroeconomic outlook. Given our revised fair value estimates, we downgrade our recommendation on HELP to 'underperform' from 'outperform' and Masterskill to 'underperform' from 'market perform', while SEGi remains an 'outperform'.
We are downgrading the sector to 'neutral' from 'overweight', as the market is no longer excited by the news flow on the education sector with few potential re-rating catalysts for the sector in the immediate term. SEGi is still our pick for the sector due to its good track record and resilience in riding out market uncertainties. SEGi deservedly trades at a premium to its peers at 12.8 times FY12 PER (versus HELP and Masterskill at 12.6 times and 8.8 times respectively), supported by its superior compound annual growth rate (CAGR) of 26.3% (versus HELP and Masterskill at 7.7% and -19.6% respectively). We continue to believe that SEGi is best poised to deliver growth going forward. ' RHB Research, Sept 29
This article appeared in The Edge Financial Daily, September 30, 2011.
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: RHB | Price Call: SELL | Target Price: 1.25 |
Education sector
Downgraded to neutral: We are turning cautious on prospects for the education sector in the coming quarter given rising macroeconomic headwinds; illiquidity of the stocks in the sector; the relatively small market cap of the education stocks (less than RM1 billion); and high foreign shareholdings for HELP (12.5%) and Masterskill (49%), increasing their susceptibility to volatile portfolio flows. ''
We see few re-rating catalysts for the sector over the coming quarter. Previously, the sector was driven by ETP news flow. However, the excitement is now beginning to recede, as reflected in the uninspiring share price performance of the stocks in the sector. Entry point projects (EPP) involving SEGi such as the establishment of the Early Childhood Care and Education (ECCE) hub and the SkillsMalaysia INVITE programme are already under way, while the announcement of the gradual liberalisation of the education sector under the Strategic Reform Initiatives (SRI) is already priced in.
Risks include further regulatory changes; increase in competition; and slowdown in demand for private higher education as consumers could turn cautious on multi-year commitments to course fees.
Across the board, we are cutting our target FY12 PER for the stocks by one to two times, in line with RHBRI's lower target PER of 13 times (from 14 times).
Our previous valuations look overly optimistic given the more bearish macroeconomic outlook. Given our revised fair value estimates, we downgrade our recommendation on HELP to 'underperform' from 'outperform' and Masterskill to 'underperform' from 'market perform', while SEGi remains an 'outperform'.
We are downgrading the sector to 'neutral' from 'overweight', as the market is no longer excited by the news flow on the education sector with few potential re-rating catalysts for the sector in the immediate term. SEGi is still our pick for the sector due to its good track record and resilience in riding out market uncertainties. SEGi deservedly trades at a premium to its peers at 12.8 times FY12 PER (versus HELP and Masterskill at 12.6 times and 8.8 times respectively), supported by its superior compound annual growth rate (CAGR) of 26.3% (versus HELP and Masterskill at 7.7% and -19.6% respectively). We continue to believe that SEGi is best poised to deliver growth going forward. ' RHB Research, Sept 29
This article appeared in The Edge Financial Daily, September 30, 2011.
September 2, 2011
Masterskill extends losses on poor result, downgrade
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
KUALA LUMPUR: Masterskill Education Group Bhd (MEGB) extended its losses on Friday, Sept 2 after its disappointing second quarter financial results and weaker outlook.
At 11.15am, Masterskill fell eight sen to RM1.24 with 3.2 million shares done.
Its second quarter results fell 48% to RM11.57 million from RM22,430 a year ago while its revenue declined 14.7% to RM65.78 million from RM77.11 million. For the first half, its earnings declined by 30.4% to RM34.16 million from RM49.11 million.
CIMB Equities Research had downgraded the stock from Outperform to Neutral, reducing its target price and also slashing its earnings per share (EPS) forecast.
CIMB Reseach on June 29 said Masterskill's annualised 1H11 core net profit was a letdown, coming in at 43% below its forecast and 40% below consensus because of poor student numbers and a 10.8 percentage points shortfall in EBITDA margin due to surprisingly high operating costs.
'The 44% year-on-year plunge in net student intake was a negative surprise and should be equally weak in 2H. In the medium term, student intake prospects are unexciting and margins will be under pressure,' it said.
CIMB Research also slashed its FY11-FY13 EPS forecasts by 43%-45% and dividends per share (DPS) forecasts by 53%-54%.
The research house also said it had cut the target price from RM3.48 to RM1.71 as it raised its discount to the 14.5 times market P/E from 30% to 40%, which lowered its target CY12 price-to-earnings from 10.2 times to 8.7 times.
'Our rating is downgraded from Outperform to NEUTRAL. The stock's sole attraction is its dividend yield of 5%-7%,' it said
''
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: CIMB | Price Call: HOLD | Target Price: 1.71 |
KUALA LUMPUR: Masterskill Education Group Bhd (MEGB) extended its losses on Friday, Sept 2 after its disappointing second quarter financial results and weaker outlook.
At 11.15am, Masterskill fell eight sen to RM1.24 with 3.2 million shares done.
Its second quarter results fell 48% to RM11.57 million from RM22,430 a year ago while its revenue declined 14.7% to RM65.78 million from RM77.11 million. For the first half, its earnings declined by 30.4% to RM34.16 million from RM49.11 million.
CIMB Equities Research had downgraded the stock from Outperform to Neutral, reducing its target price and also slashing its earnings per share (EPS) forecast.
CIMB Reseach on June 29 said Masterskill's annualised 1H11 core net profit was a letdown, coming in at 43% below its forecast and 40% below consensus because of poor student numbers and a 10.8 percentage points shortfall in EBITDA margin due to surprisingly high operating costs.
'The 44% year-on-year plunge in net student intake was a negative surprise and should be equally weak in 2H. In the medium term, student intake prospects are unexciting and margins will be under pressure,' it said.
CIMB Research also slashed its FY11-FY13 EPS forecasts by 43%-45% and dividends per share (DPS) forecasts by 53%-54%.
The research house also said it had cut the target price from RM3.48 to RM1.71 as it raised its discount to the 14.5 times market P/E from 30% to 40%, which lowered its target CY12 price-to-earnings from 10.2 times to 8.7 times.
'Our rating is downgraded from Outperform to NEUTRAL. The stock's sole attraction is its dividend yield of 5%-7%,' it said
''
August 29, 2011
CIMB Research downgrades Masterskill to Neutral, slashes EPS
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
KUALA LUMPUR: CIMB Equities Research has downgraded Masterskill Education Group Bhd (MEGB) from Outperform to Neutral, reducing its target price and also slashing its earnings per share (EPS) forecast.
It said on Monday, Aug 29 Masterskill's annualised 1H11 core net profit was a letdown, coming in at 43% below its forecast and 40% below consensus because of poor student numbers and a 10.8 percentage points shortfall in EBITDA margin due to surprisingly high operating costs.
'The 44% year-on-year plunge in net student intake was a negative surprise and should be equally weak in 2H. In the medium term, student intake prospects are unexciting and margins will be under pressure,' it said.
CIMB Research also slashed its FY11-FY13 EPS forecasts by 43%-45% and dividends per share (DPS) forecasts by 53%-54%.
The research house also said it had cut the target price from RM3.48 to RM1.71 as it raised its discount to the 14.5 times market P/E from 30% to 40%, which lowered its target CY12 price-to-earnings from 10.2 times to 8.7 times.
'Our rating is downgraded from Outperform to NEUTRAL. The stock's sole attraction is its dividend yield of 5%-7%,' it said.
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: CIMB | Price Call: HOLD | Target Price: 1.71 |
KUALA LUMPUR: CIMB Equities Research has downgraded Masterskill Education Group Bhd (MEGB) from Outperform to Neutral, reducing its target price and also slashing its earnings per share (EPS) forecast.
It said on Monday, Aug 29 Masterskill's annualised 1H11 core net profit was a letdown, coming in at 43% below its forecast and 40% below consensus because of poor student numbers and a 10.8 percentage points shortfall in EBITDA margin due to surprisingly high operating costs.
'The 44% year-on-year plunge in net student intake was a negative surprise and should be equally weak in 2H. In the medium term, student intake prospects are unexciting and margins will be under pressure,' it said.
CIMB Research also slashed its FY11-FY13 EPS forecasts by 43%-45% and dividends per share (DPS) forecasts by 53%-54%.
The research house also said it had cut the target price from RM3.48 to RM1.71 as it raised its discount to the 14.5 times market P/E from 30% to 40%, which lowered its target CY12 price-to-earnings from 10.2 times to 8.7 times.
'Our rating is downgraded from Outperform to NEUTRAL. The stock's sole attraction is its dividend yield of 5%-7%,' it said.
August 5, 2011
HwangDBS maintains 'buy' call on Masterskill
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
HwangDBS Vickers has maintained a "buy" call recommendation on Masterskill Education Group with a lower target price of RM2.50 from RM3.25 previously due to earnings pressure and a lower student intake.
The research house said factors such as tighter financing loan from the
National Higher Education Fund Corporation and higher nursing entry requirements had somewhat affected the number of students enrolling in the diploma programmes.
Industry statistics showed that the total intake of diploma-level students
in the health, health sciences and welfare field by private higher education
institutions last year, declined to 30,000 against 38,000 in 2009.
In comparison, the number of new students registered by MASEG was 5,500 last year versus 6,600 in 2009.
HwangDBS said to encounter the challenging environment, Masterskill, which
has more than 95 per cent of its students currently enrolled in diploma
programmes, will take several initiatives to broaden the group's earnings.
"Masterskill is expected to step up its student recruitment drives, offer
more degree programmes, branch out to provide non-healthcare related courses, collaborate with established foreign institutions and venture overseas to diversify its income streams," added HwangDBS. -- Bernama
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: HWANGDBS | Price Call: BUY | Target Price: 2.50 |
HwangDBS Vickers has maintained a "buy" call recommendation on Masterskill Education Group with a lower target price of RM2.50 from RM3.25 previously due to earnings pressure and a lower student intake.
The research house said factors such as tighter financing loan from the
National Higher Education Fund Corporation and higher nursing entry requirements had somewhat affected the number of students enrolling in the diploma programmes.
Industry statistics showed that the total intake of diploma-level students
in the health, health sciences and welfare field by private higher education
institutions last year, declined to 30,000 against 38,000 in 2009.
In comparison, the number of new students registered by MASEG was 5,500 last year versus 6,600 in 2009.
HwangDBS said to encounter the challenging environment, Masterskill, which
has more than 95 per cent of its students currently enrolled in diploma
programmes, will take several initiatives to broaden the group's earnings.
"Masterskill is expected to step up its student recruitment drives, offer
more degree programmes, branch out to provide non-healthcare related courses, collaborate with established foreign institutions and venture overseas to diversify its income streams," added HwangDBS. -- Bernama
June 27, 2011
CIMB Research maintains Outperform on Masterskill
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
KUALA LUMPUR: CIMB Equities Research has lowered the target price for Masterskill Education Group Bhd from RM4.48 to RM3.48 but it is maintaining an OUTPERFORM rating while the main potential catalyst is the recovery of investor sentiment.
It said on Monday, June 27 The Edge's article highlighted Masterskill CEO and ED's comments on his health after a brain aneurysm, confirming speculation on it early this year.
'Positive surprises include (i) the operation of smart schools which are in good demand, (ii) diversification into business-related courses, and (iii) a 2012 target for the launch of its Indonesian campus.
'However, the delay in revealing the developments in the CEO's health could highlight the issue of transparency and corporate governance. In view of this, we raise our discount to our 14.5 times target market P/E from 10% to 30%, in line with our small-cap valuations,' it said.
CIMB Research said though its target price is cut from RM4.48 to RM3.48, it maintains an OUTPERFORM rating as its CY11-12 P/E of six to seven times and 9% dividend yields are attractive. The main potential catalyst is the recovery of investor sentiment.
Company Name: MASTERSKILL EDUCATION GROUP
| Research House: CIMB | Price Call: BUY | Target Price: 3.48 |
KUALA LUMPUR: CIMB Equities Research has lowered the target price for Masterskill Education Group Bhd from RM4.48 to RM3.48 but it is maintaining an OUTPERFORM rating while the main potential catalyst is the recovery of investor sentiment.
It said on Monday, June 27 The Edge's article highlighted Masterskill CEO and ED's comments on his health after a brain aneurysm, confirming speculation on it early this year.
'Positive surprises include (i) the operation of smart schools which are in good demand, (ii) diversification into business-related courses, and (iii) a 2012 target for the launch of its Indonesian campus.
'However, the delay in revealing the developments in the CEO's health could highlight the issue of transparency and corporate governance. In view of this, we raise our discount to our 14.5 times target market P/E from 10% to 30%, in line with our small-cap valuations,' it said.
CIMB Research said though its target price is cut from RM4.48 to RM3.48, it maintains an OUTPERFORM rating as its CY11-12 P/E of six to seven times and 9% dividend yields are attractive. The main potential catalyst is the recovery of investor sentiment.
May 12, 2011
MEGB - Masterskill riding on the healthcare wave
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Research House: RHB
Masterskill Education Group Bhd
(May 12, RM2.22)
Initiating coverage with outperform call at RM2.27 with fair value of RM3.74: Masterskill has built its reputation in the provision of nursing and allied health education in Malaysia. It currently has 18,399 students enrolled in its diploma and degree programmes, expanding at a compound annual growth rate (CAGR) of 28.3% from 2004 to 2010.
Masterskill's growth in the next few years will be propelled by: (i) An increasing demand for nurses. The government is targeting a ratio of one registered nurse to 200 population by 2020 from the current ratio of 1:500. In 2008 (latest data available), there were 54,000 registered nurses, implying a deficit of 81,000 nurses (based on 27 million population).
With teaching facilities producing about 6,000 to 7,000 nurses per year, the shortage will mean that the demand for Masterskill's nursing courses will remain high for the foreseeable future;
(ii) New courses in the pipeline. Masterskill plans to introduce new programmes in the allied health and medical education disciplines. The group has lined up seven new programmes to be introduced in 2011, yielding high margins that will help to drive its margins moving forward; and
(iii) An increase in student enrolment. Masterskill has received approval to offer a Bachelor of Medicine and Surgery programme with a quota of 100 students at its Johor campus. In addition, it will be building a flagship campus (capacity of 20,000 students) in Bandar Baru Bangi. Phase 1 of the new campus is targeted for completion in 4QFY12 while Phase 2 is due to be ready in FY13.
Risks include: (i) changes in the requirements set by governing bodies; (ii) a change in policy by the government; and (iii) high foreign shareholding (approximately 56%).
We project FY10/13 revenue CAGR of 13.4%, driven primarily by the increase in student enrolment as well as a gradual increase in fees. Our FY10/13 net profit CAGR, however, is expected to grow 14.7% as a result of improved operating leverage on the back of facility integration and economies of scale.
We believe Masterskill's price-earnings ratios are attractive, trading at 7.6 times FY11, compared with peers HELP International Corp Bhd and SEG International Bhd, that trade at FY11 PERs of 15.6 times and 14.3 times. This is unjustified given its relatively larger market cap size and'' higher margins.
Concerns over the availability of National Higher Education Fund (PTPTN) loans are also overplayed in our opinion. Our fair value for the stock is RM3.74, based on target FY11 PER of 12.5 times, 15% discount to the sector average FY11 PER of 15 times. We initiate coverage with an 'outperform' call on the stock. ' RHB Research, May 12
This article appeared in The Edge Financial Daily, May 13, 2011.
Company Name: MASTERSKILL EDUCATION GROUP
Research House: RHB
Masterskill Education Group Bhd
(May 12, RM2.22)
Initiating coverage with outperform call at RM2.27 with fair value of RM3.74: Masterskill has built its reputation in the provision of nursing and allied health education in Malaysia. It currently has 18,399 students enrolled in its diploma and degree programmes, expanding at a compound annual growth rate (CAGR) of 28.3% from 2004 to 2010.
Masterskill's growth in the next few years will be propelled by: (i) An increasing demand for nurses. The government is targeting a ratio of one registered nurse to 200 population by 2020 from the current ratio of 1:500. In 2008 (latest data available), there were 54,000 registered nurses, implying a deficit of 81,000 nurses (based on 27 million population).
With teaching facilities producing about 6,000 to 7,000 nurses per year, the shortage will mean that the demand for Masterskill's nursing courses will remain high for the foreseeable future;
(ii) New courses in the pipeline. Masterskill plans to introduce new programmes in the allied health and medical education disciplines. The group has lined up seven new programmes to be introduced in 2011, yielding high margins that will help to drive its margins moving forward; and
(iii) An increase in student enrolment. Masterskill has received approval to offer a Bachelor of Medicine and Surgery programme with a quota of 100 students at its Johor campus. In addition, it will be building a flagship campus (capacity of 20,000 students) in Bandar Baru Bangi. Phase 1 of the new campus is targeted for completion in 4QFY12 while Phase 2 is due to be ready in FY13.
Risks include: (i) changes in the requirements set by governing bodies; (ii) a change in policy by the government; and (iii) high foreign shareholding (approximately 56%).
We project FY10/13 revenue CAGR of 13.4%, driven primarily by the increase in student enrolment as well as a gradual increase in fees. Our FY10/13 net profit CAGR, however, is expected to grow 14.7% as a result of improved operating leverage on the back of facility integration and economies of scale.
We believe Masterskill's price-earnings ratios are attractive, trading at 7.6 times FY11, compared with peers HELP International Corp Bhd and SEG International Bhd, that trade at FY11 PERs of 15.6 times and 14.3 times. This is unjustified given its relatively larger market cap size and'' higher margins.
Concerns over the availability of National Higher Education Fund (PTPTN) loans are also overplayed in our opinion. Our fair value for the stock is RM3.74, based on target FY11 PER of 12.5 times, 15% discount to the sector average FY11 PER of 15 times. We initiate coverage with an 'outperform' call on the stock. ' RHB Research, May 12
This article appeared in The Edge Financial Daily, May 13, 2011.
March 31, 2011
MEGB - OSK Research maintains Trading Buy on Masterskill, unch FV RM3.44
Stock Name: MEGB
Company Name: MASTERSKILL EDUCATION GROUP
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Trading Buy on Masterskill Education Group Bhd (MEGB) at an unchanged FV of RM3.44 at 12x FY11 PER.
It said on Thursday, March 31 the stock is currently trading at an alluring FY11 PER of 6.4x, the cheapest in its coverage, with dividend yield of'' more than 7% p.a.
'With the stock's valuation at its trough, we believe that any further downside risks are unlikely and hence we see this as an opportune time to accumulate. Its key re-rating catalysts are more affirmative indications in relation to PTPTN's loan allocation and the potential approval of courses at its new Kuching campus,' it said.
Company Name: MASTERSKILL EDUCATION GROUP
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Trading Buy on Masterskill Education Group Bhd (MEGB) at an unchanged FV of RM3.44 at 12x FY11 PER.
It said on Thursday, March 31 the stock is currently trading at an alluring FY11 PER of 6.4x, the cheapest in its coverage, with dividend yield of'' more than 7% p.a.
'With the stock's valuation at its trough, we believe that any further downside risks are unlikely and hence we see this as an opportune time to accumulate. Its key re-rating catalysts are more affirmative indications in relation to PTPTN's loan allocation and the potential approval of courses at its new Kuching campus,' it said.
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