Within expectations. PRES
recorded 1QFY13 revenue of MYR26.2m (-3.2% y-o-y; +8.1% q-o-q), which we
attribute to higher contributions from its ICT training and
certification division. On a sequential basis, PBT was 9.6% lower at
MYR9.0m owing to higher operating expenses incurred during the quarter.
Overall, the company’s 1QFY13 core earnings of MYR9.0m (+12.2% y-o-y;
-13.2% q-o-q) was within our estimate, making up 19.4% of our annualised
forecast.
Attractive dividend payout.
The company declared a first interim DPS of 2.5 sen, which translates
into a payout ratio of 61.1% for the quarter under review. We continue
to expect PRES to pay out a DPS of 11.0 sen and 12.0 sen for FY13 and
FY14 respectively. These will translate into appealing yields of 6% to
7% over the next two years.
More opportunities in O&G training.
PRES recently secured a MYR2m contract from GEMS Malaysia SB to provide
ICT training for O&G industry and certification for 250 university
graduates for a period of 18 months. We understand that Management is
still in talks with a number of O&G companies to offer Autodesk and
other certification programmes. With Malaysia’s general elections
concluded, we continue to see potential growth for the company in this
lucrative industry.
Maintain BUY. Overall, we
remain positive on the company’s prospects in ICT training for O&G
industry and make no changes to our assumptions for now. We maintain
our BUY call, with our FV now at MYR2.36, as we roll over our valuations
to FY14, pegged to an unchanged 10x P/E.
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