Kenanga cautious on Segi outlook

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: KENANGA

Price Call: SELL

Target Price: 1.45

Kenanga Research is cautious on SEG International Bhd's (SEGi) outlook, saying its first quarter net profit of RM1 million was way below expectations.

"We believe that the group is still struggling to recover from the loss of a large number of its graduating students, which was supposed to be filled by new recruitments of foreign students, but it has been dragged by the new regulations set by the government," Kenanga said in a note.

Year-on-year, the company's 2013 first quarter revenue of RM55.8 million was down by 28 per cent due to the dismal intake coupled with a higher number of graduating students from its nursing programme.

Going forward, the escalating competition in the private higher education space will provide an additional challenge to the group, Kenanga said.

It has downgraded SEGi's rating to 'underperform' with a target price of RM1.45, from RM1.75.

Meanwhile, another research house, RHB Research, has maintained its 'sell' call on the company with a lower target price of RM0.96 from RM1.20.

"The disappointing results echo our concern that SEGi is breaking under the weight of rising competition given the status upgrades of several existing tertiary institutions.

"Thus, we continue to anticipate a difficult 2013 first half financial year due to sub-par student enrolment numbers, and remain cautious on its near-term earnings growth," it said.-- Bernama

A Disappointing Quarter

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: TA

Price Call: SELL

Target Price: 1.72

RHB cuts SEG Int to 'market perform'

Stock Name: SEG
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

Looking Forward to Stronger 2H

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: TA

Price Call: BUY

Target Price: 2.52

RHB Research cuts SEGi's fair value

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 2.20

RHB Research cut SEG International Bhd's (SEGi) fair value to RM2.20 per share from RM2.25 after the education firm's first-half earnings came in slightly below its expectations.

The research house cut its 2012-2014 earnings forecast on SEGi by 3.9-5.9 percent annually after revising its student growth and cost assumptions.

"Nonetheless, we believe that SEGi remains an attractive investment due to its long-term growth prospects," RHB said in a research note on Tuesday, maintaining its "outperform" rating on the stock.

By 9:38am, shares of SEGi remained unchanged at RM2.02. -- Reuters

Becoming an Integrated Education Player

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: TA

Price Call: BUY

Target Price: 2.52

TA downgrades SEGi to 'hold'

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: TA

Price Call: HOLD

Target Price: 1.98

TA Research downgraded SEG International Bhd (SEGi) to "hold" as it saw the offer by Navis Capital to take over the education firm as unattractive.

"Given the unattractive terms of the deal, we recommend investors to reject the offer by Navis," TA said in research note on Thursday.

The broker cut its target price for SEGi to RM1.98 per share to take into account the risk that the takeover offer will result in eventual delisting of the stock at a discounted price.

"We shall review our recommendation once there is better clarity on the outcome of the takeover offer," it added. -- Reuters

EDUCATION (Sector Update: OVERWEIGHT)

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: OSK

Price Call: BUY

Target Price: 2.17

Stock Name: PRESBHD
Company Name: PRESTARIANG BERHAD

Research House: OSK

Price Call: BUY

Target Price: 1.48

To determine the long-term sustainability of the sector, wetake a look at the latest progress of some of the government initiatives underthe ETP as well as the current situation for education providers in Malaysia.We also  make some brief comparisons withdeveloped economies to gauge the underlying growth potential for the localeducation sector as Malaysia aspires to become a high-income nation by 2020.All in,  we maintain OVERWEIGHT on thesector with SEG International (BUY, FV: RM2.17) and Prestariang (BUY, FV:RM1.48) being our top buys. 

Education as one ofthe NKEAs. Recognizing the education sector as one of the key sectors thatwill drive the  growth of national incomeover the next 10 years and transform the nation into a developed economy by2020, the Government has reiterated its focus on this sector. It has recognized14 Entry Point Projects (EPPs) covering preschool to tertiary education to pushup the overall literacy rate of Malaysians as well as to encourage a highereducation take-up rate among citizens.

Rising  household income the key catalyst. Should the Economic Transformation Programme (ETP) succeed in pushing up Malaysia'saverage income per capita, we see this as a big boost to the private educationsector. This is evident in historical trends, whereby the number of localentrants into public and private tertiary varsities increase in tandemwith  rising  domestic real GDP per capita.  We attribute this to the increased willingnessto spend on education as a typical family's household income increases and hence,we see plenty of room for improvement in the sector.

Tertiary take-up ratelikely  to improve. There is plentyroom for improvement in the tertiary take-up rate among  our secondary school leavers which currentlystands at approximately 70%. As our real GDP per capita continues to expand, weexpect tertiary take-up rate to improve in tandem with  the increasing emphasis on quality tertiary education. We also expectprivate varsities to play a more important role due to a few factors, namelyaggressive capacity expansion resulting in more competitive pricing, innovativeprogramme packaging with options to do twinning programmes with reputable foreignuniversity partners as well as a decline in the global ranking of Malaysia'spublic institutions of higher learning, prompting parents to seek betteralternatives.

PTPTN woes to beslowly resolved. PTPTN first came into existence in 1999 with the initialaim to provide tertiary education funding for private varsity students.Nonetheless, the  Government has sinceextended  it to  public universities  students and it  is now  a source of funding for some80%  of students in public varsities and55%  in private institutions. Accordingto sources, the outstanding  loans forPTPTN  amount to some RM43bn being borneby about 2m students, with an annual allocation of some RM3bn for 200k students. We expect  the Government to stepup its loan collection efforts, having appointed the Inland Revenue Board (IRB)as the effective collection agent.

OVERWEIGHT. Allin all, we maintain OVERWEIGHT on the sector, as we see local educationproviders gaining strength in 2012, driven by Government initiatives to spur theprivate education sector.  As the PTPTNworks towards sorting out its collection woes, there appears to be a trendamong local institutions to tie up with more reputable foreign institutions,thus further enhancing Malaysia's appeal as an education hub.

Source: OSK188

SEG (FV RM2.17- BUY) Corporate News Flash: Imminent GO for SEGi?

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: OSK

Price Call: BUY

Target Price: 2.17

THE BUZZ

The Star reported that a general offer (GO) for SEGInternational (SEGi) may be announced as early as  the end of next week by Navis Capital, its second largest shareholder with a26.5% stake. The latter could potentially partner with SEGi's existing singlelargest shareholder, Datuk Seri Clement Hii, who holds a 28.4% stake.

OUR TAKE

Joint offer likely.  From the daily's interview with Datuk SeriClement Hii and reading between the lines, we opine that SEGi's existing majorshareholder-cum-MD is likely to partner with Navis Capital to launch a GO.Although our previous assumption that a GO might not take place at thisjuncture could turn out to be wrong, the latest speculation still matches ourview that Datuk Seri Hii is unlikely to cash out on his 28.4% stake (or 31.4%upon full conversion of his interest in warrants) in SEGi at this juncture,based on the understanding that this is his core business focus for now.

Potential pricing.To entice the minority shareholders, we believe the potential GO has to bepriced at a minimum of RM2.10/share (as opposed to Navis Capital's existingcost of RM1.71/share), which would then translate into FY12 and FY13 PERs of16.6x and 15.0x respectively. We would deem  such a pricing  fair considering SEGi's sizeable studentbase, which justifies the premium that  it should command over itspeers. At RM2.10/share, SEGi's valuation would be at some 25% premium over HELP(NEUTRAL, FV: RM1.55) and a 80% premium over Masterskill (SELL, FV: RM0.84).

Combined 54.9% stakenow. Taking a brief look at SEGi's existing shareholding spread, the twoparties hold a combined 54.9% stake in SEGi, or an effective stake of 59.4%  upon the  full conversion of theirrespective warrants.  To take the companyprivate, the pair would have to fork out some RM600m to buy out the minoritiesbased on RM2.10/share, which  we  see as not much of an issue given Navis Capital's huge assets under management ofsome USD3bn.

BUY. We expectto  see more developments on this  unfold in the next 2 weeks and hence, maintain our BUY call on SEGi, at anunchanged FV of RM2.17, based on 18x FY12 PER and a fully enlarged share baseof 748.4m. A re-rating on the sector as a whole is possible but not likely,given the specific factors  underlying  each of the education counters under our coverage.

Source: OSK188

SEG International (SEGi)

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: OSK

Price Call: BUY

Target Price: 2.17

THE BUZZ

SEG International (SEGi) announced that Navis Capital is now one of its major shareholders with148.5m shares, or  an effective 26.5%stake, following the  disposals byprevious shareholders Cerahsar SB, Segmen Entiti SB and Datuk Chee Hong Leong oftheir entire stakes in SEGi.  As aresult, Navis Capital  is now SEGi's  2^nd largest shareholder afterDatuk Seri Clement Hii with 28.4% equity interest, or 158.8m shares,based onthe number of outstanding shares issued of 559.3m.

OUR TAKE

An upside surprise.Earlier, we had speculated that the Malaysian Chinese Association (MCA) couldbe taking up a stake in SEGi and possibly injecting Universiti Tunku Abdul Rahmaninto the listed entity after a huge block of the company's shares changed handsoff-market last Friday. Nonetheless, this Bursa  announcement  puts to rest our speculation. Having saidthat, we are positively surprised by  the emergence of Navis Capitalas the second single largest shareholder in SEGi as this marks the maiden entryof a private equity fund as a substantial shareholder into SEGi.Background onNavis Capital. Navis Capital was founded in 1998 with its core focus oninvestments in growth-oriented buyouts in South and Southeast Asia. Havinggrown tremendously  since  its inception,  the  fund has today  the largest professional  private equity teamin Asia of about 100 people in 7 offices across the region. It now manages someUSD3bn in capital commitments, with its sole investment in the education sectorpreviously being India's ITM Group of Institutions, which is an unlisted entityin which it invested USD30m in 2009.

Source: OSK188

SEG International: Emergence of new Substantial Shareholder?

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 2.00

SEG International: Emergence of new Substantial Shareholder?                             Outperform

News Update

-          News emerged over the weekend that Navis Capital, a private equity firm, has bought a 37.5% stake in SEGi, and is planning to buy more this week. This could possibly trigger a general offer for SEGi's remaining shares.

-          No changes to forecasts and Outperform call. Fair value maintained at RM2.00, pending the company's announcement.

Source: RHB Research - 2 April 2012

SEG (FV RM2.17 - BUY) FY11 Results Review: Hits The Sweet Spot

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: OSK

Price Call: BUY

Target Price: 2.17

SEG International's (SEGi) FY11 core earnings of RM72.3mwere in line with both our and consensus forecasts, making up  95.3% and 98.4% of the  respectiveprojections.  Being one of the largestprivate education players in Malaysia with 30k students on board, we continueto like SEGi for its diversified course offering and established balancesheet  that is premised on an asset-lightmodel. Hence, maintain BUY at a revised FV of RM2.17 based on an unchanged 18xFY12 PER.

Within expectations.SEGi's FY11 revenue came in 27.9% higher y-o-y at RM278.3m due to higherstudent enrolment, which we estimate to have risen from 21k to 30k as of Dec2011. Correspondingly, the EBITDA margin widened 300bps to 31.9% on improvedeconomies of scale as enrolment growth outpaced the marginal increase in opex.Lower financing costs and a more favourable effective tax rate helped lift FY11core earnings to RM72.3m, which surged over 67.9% y-o-y. On a quarterly basis,4QFY11  results were generally up y-o-yon higher student enrolment but recorded a slight dip sequentially due toexpenses incurred in upgrading its campuses during the quarter. 

Cash pile of RM87.2m.  Although the company did not declare anydividends for the quarter, we continue to see potential for a bumper dividendgiven its sturdy cash pile of RM87.2m as of Dec 2011 (which translates into anet cash per share of 14.0 sen based on the  current share capital) aswell as its strong operating cash flow estimated at >RM100m p.a. for bothFY12 and FY13. Should its remaining 189.7m outstanding warrants which arecurrently trading at a slight discount of 1.5% be exercised, this willtranslate into an extra cash coffer of RM94.8m at the exercise price ofRM0.50/share. In our model, we assume a staggered conversion with an average63.2m warrants converted per year from FY12 to FY14.

BUY. We make nomajor changes to our core assumptions for now, with our FY12 core earningsforecast revised upward marginally by 0.5% to RM90.2m for book-keeping purposesfollowing its full-year results release. We also take the opportunity tointroduce our FY13 forecasts, with the net profit estimate coming in atRM99.6m. Maintain BUY with our FV now revised to RM2.17 based on an unchanged 18xFY12 PER and a fully enlarged share base of 748.4m shares upon the conversion ofall outstanding warrants.

Source: OSK188

Acquires RM22m Land

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: OSK

Price Call: BUY

Target Price: 2.16

Progressing Well

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: KENANGA

Price Call: BUY

Target Price: 2.35

A dividend boost from SEGi

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: OSK

Price Call: BUY

Target Price: 2.16

SEG International Bhd
(Nov 10, RM1.89)
Maintain buy with revised fair value RM2.16 from RM2.23: SEG International Bhd's (SEGi) 9MFY11 core earnings of RM36.3 million were in line with both our and consensus forecasts at 71% and 72% of the projections. A second interim gross dividend per share (DPS) of 10 sen was declared, bringing FY11 payout to 13.5 sen (excluding a special DPS of 7.3 sen paid in 1Q) which implies payout of more than 100%. We continue to like its diversified course offering as well as established balance sheet operating on an asset-light model. Hence, we maintain 'buy' at revised fair value of RM2.16 based on an unchanged 18 times FY12 price-earnings ratio.

SEGi's 9MFY11 revenue came in 29% higher year-on-year (y-o-y) at RM207.7 million due to higher student enrolment, which we believe has risen to 26,000 from 21,000. Earnings before interest and tax (Ebit) margin widened correspondingly to 33% from 25% on improved economies of scale as enrolment growth outpaced a marginal increase in operating expenditure.

Lower financing costs and a more favourable effective tax rate helped to further lift 9MFY11 core earnings to RM54.6 million, surging over 74% y-o-y. On a quarterly basis, 3QFY11 numbers were generally flattish q-o-q while on a y-o-y basis, 3QFY11 top line rose 25% to RM70 million while core earnings surged 66% to RM18.3 million on improved utilisation of its existing facilities as the group rolled out healthcare and medical courses.

Although we previously incorporated a FY11 dividend payout of only 50%, year-to-date gross DPS amounted to 13.5 sen (implying a payout ratio of more than 100%) following its second interim gross DPS of 10 sen. This high payout ratio does not entirely catch us by surprise as we have highlighted previously such a possibility given its robust balance sheet operating on an asset-light model. Given its sturdy cash pile of RM106.8 million as of 3QFY11, we believe further upside is not unlikely as capital expenditure remains largely manageable at RM15 million to RM20 million per year, hence we bump up our DPS forecast to 17.7 sen for FY11 and 9.5 sen for FY12 at a payout ratio of 180% and 80% respectively.

We make no major changes to our core assumptions for now. Our FY11 and FY12 earnings per share estimates are lowered by 3% and 1% respectively as we tweak our opex structure to account for higher overhead expenses in the belief that the group will likely recruit more lecturers for the commencement of its vocational courses catering for foreign students. In a separate announcement, SEGi mentioned that courses for an initial batch of 600 Vietnamese students will commence in late 4Q11. ' OSK Research, Nov 10


This article appeared in The Edge Financial Daily, November 11, 2011.

RHB Research maintains Outperform on SEGi

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 2.15

KUALA LUMPUR (Nov 10): RHB Research Institute is maintaining its Outperform recommendation on SEG International with a fair value of RM2.15, based on unchanged target 17 times FY12 price-to-earnings ratio (PER).

It said on Thursday that recent concerns with regards to the possible PTPTN loan reduction will have a minimal impact on SEGi as only about 27% of its students are under the PTPTN loans.

SEGi's earnings rose 66.3% to RM18.32 million in the third quarter ended Sept 30, 2011 from RM11.01 million a year ago. Revenue increased by 24.1% to RM69.95 million from RM56.36 million while earnings per share were 3.50 sen versus 2.22 sen.

For the nine-month period, its net profit increased by 74.2% to Rm54.57 million from RM31.32 million while revenue saw a 28.8% rise to RM207.65 million from RM161.23 million.

RHB Research said the '' 3Q11 net profit was within expectations. A dividend of 10 sen per share was declared.

' Although sequential performance was flattish, revenue grew by 24.1% on-year due to higher student enrolment that we estimate grew 19-20% on-year. As operating costs are mostly fixed, the improved top line resulted in EBIT growing 70.3% on-year. Effective tax rate increased to 21% in 3Q11 (vs. 18.4% in 3Q10), but the stronger EBIT led to an overall increase in the net profit margin to 26.5% (from 19.5% in 3Q10),' it said.

SEGi also inked an agreement with the Vietnam government to finalise the MoU that was signed in Aug. These collaborations will fall under the SkillsMalaysia INVITE project and SEGi will be responsible for providing skill-based training to the Vietnam vocational instructors and students.

'An initial batch of 600 Vietnam students will commence training in 2011. With average revenue of about RM20,000 per student, we believe that the SkillsMalaysia INVITE programme will contribute about 8% to the top line in the longer term,' said RHB Research.

SEG International COO buys 3.17m shares

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 2.15

KUALA LUMPUR: SEG INTERNATIONAL BHD []'s chief operating officer Hew Moi Lan acquired 3.17 million shares of the education-based group from Sept 29 to Oct 3.

A filing showed Hew, who is also an executive director, raised her shareholding in SEGi to 6.668 million shares or 1.28%. SEGi's share price closed at RM1.70 on those three days.

Prior to the recent acquisitions, her shareholding was 3.498 million shares or 0.67%.

Hew was appointed as the group chief operating officer on Feb 27, 2009. Prior to that, she was the vice president of operations and the principal of SEGi College Kuala Lumpur, one of the core subsidiary companies of the SEGi Group.

RHB Research Institute maintained its outlook on SEGi as an outperformer, due to its track record and resilience in riding out market uncertainties and its CAGR of 26.3%.

It had SEGi as a top pick with a fair value of RM2.15.

Waning optimism in the coming quarter

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 2.15

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.

SEG International spreading its wings with new campus

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 4.60

SEG International Bhd
(June 22, RM3.84)
Maintain outperform at RM3.83 with revised fair value of RM4.60 (from RM5.05): The media recently reported that SEGi is constructing a RM300 million to RM500 million campus in Perak. Management clarified that although there is a campus being built in Perak, SEGi is not directly involved in its construction.

SEGi has entered into an agreement with a private developer, Oakfine Development Sdn Bhd, to build the campus with SEGi leasing it from the developer upon completion. As SEGi will not be bearing any of the construction costs, there is no direct impact on SEGi's financials in the immediate term. The campus is expected to be completed in late 2013 or early 2014, which is beyond our current investment horizon.

Earlier this month, the government announced that a consortium of nine early childhood care and education (ECCE) providers had been formed under the Economic Transformation Programme (ETP). SEGi will lead the way in providing ECCE programmes and setting up the ECCE education hub.

Under this programme, SEGi will look at providing courses to kindergarten teachers and childcare providers. The courses are expected to start at end-2011 or early-2012, subject to'' government approval of the syllabus.

Management has guided that the introduction of new high margin programmes is on track. The optometry programme is already underway at its Kota Damansara campus, while the dentistry programme is currently awaiting approval.

Risks include: (i) change in requirements set by governing bodies; and (ii) a change in government policy might impact the eligibility criteria for students to obtain loans/scholarships.

We make no change to our FY11 to FY13 net profit forecasts for now. We reiterate our 'outperform' call on the stock, with a revised fair value of RM 4.60 (from RM5.05), which is based on target 18 times FY12 price earnings ratio and fully-diluted earnings per share.

In our opinion, SEGi deserves to trade at a premium to its peers with its superior three-year compound annual growth rate of 24.4% (against HELP International Corp Bhd's 17.1% and Masterskill Education Group Bhd at 11.3%) and an attractive dividend yield of 4.4% (against HELP and Masterskill of 1.7% and 7.4%). ' RHB Research, June 22


This article appeared in The Edge Financial Daily, June 23, 2011.

SEG - SEG International up after RHB Research initiates coverage

Stock Name: SEG
Company Name: SEG INTERNATIONAL BHD
Research House: RHB

KUALA LUMPUR: SEG INTERNATIONAL BHD [] (SEGi) shares advanced on Wednesday, April 20 after RHB Research initiated coverage on the stock with an outperform rating and fair value RM4.54.

At 10.45am, SEGi rose 14 sen to RM3.83.

RHB Research said its indicative fair value for SEG was pegged at a target FY11 PER of 18 times, a 10% premium over our target FY11 PER for HELP of 16.5 times and the consumer sector average FY11 PER of 16.5 times.

'We believe the premium is justified given the: 1) SEGi's superior net profit margin; 2) the wider array of courses offered as well as the number of students; and 3) larger market capitalisation,' it said on April 20.