Tuesday, November 23, 2010

OSK Research: Masterskill results within expectations, maintains TP RM3.59

KUALA LUMPUR: OSK Research said Masterskill Education Group's 9MFY10 results were within its and consensus expectations, making up about 73.8% and 72% of the research house's and consensus expectation.

The research house said on Tuesday, Nov 23 that in 9MFY10, revenue rose 17.9% on-year while net profit was up by only 9.5%, largely due to weaker margins as EBIT margin dipped from 42.8% in 9MFY09 to 38.5% for 9MFY10.

'While the results were within our expectations, we maintain our forecast and Trading Buy recommendation at an unchanged TP of RM3.59 based on 12x PER on FY11 EPS. After its sharp share price retracement, Masterskill is now trading at a rather appealing 7.1x PER on FY11 EPS compared to its peers' 14x PER on FY11 EPS,' it said.

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