KUALA LUMPUR: HELP INTERNATIONAL CORPORATION [] Bhd shares advanced on Friday, Dec 24 after the education group proposed a final gross dividend of two sen per share for the financial year ended Oct 31, 2010 amounting to RM2.13 million.
At 9.50am, HELP was up 10 sen to RM2.40 with 39,500 shares done.
HELP's net profit for the fourth quarter ended Oct 31, 2010 rose 8.4% to RM6.47 million from RM5.97 million a year ago, due mainly to increase in its revenue from rising demand for its home-grown programmes and prudent cost management.
OSK Research upgraded the stock from Neutral to Buy and said that although HELP's FY10 revenue was 8% below its own and consensus expectations, the net profit was within projections, largely attributed to better than expected margins.
It said revenue rose 8.9% year-on-year (y-o-y) while net profit climbed 25.9% y-o-y owing to better margins driven by stronger demand for its home-grown programs, which generally command higher margins.
'We maintain our FY11 forecast and introduce our FY12 estimates.
'Accordingly, our target price is lowered from RM2.69 to RM2.59 based on 14x PER on FY11 EPS, plus the adjusted current net cash of RM0.32 per share as at end-FY10 versus RM0.42 previously. Nevertheless, given the more than 10% upside, we upgrade our recommendation from Neutral to Buy,' it said in a note Dec 24.
At 9.50am, HELP was up 10 sen to RM2.40 with 39,500 shares done.
HELP's net profit for the fourth quarter ended Oct 31, 2010 rose 8.4% to RM6.47 million from RM5.97 million a year ago, due mainly to increase in its revenue from rising demand for its home-grown programmes and prudent cost management.
OSK Research upgraded the stock from Neutral to Buy and said that although HELP's FY10 revenue was 8% below its own and consensus expectations, the net profit was within projections, largely attributed to better than expected margins.
It said revenue rose 8.9% year-on-year (y-o-y) while net profit climbed 25.9% y-o-y owing to better margins driven by stronger demand for its home-grown programs, which generally command higher margins.
'We maintain our FY11 forecast and introduce our FY12 estimates.
'Accordingly, our target price is lowered from RM2.69 to RM2.59 based on 14x PER on FY11 EPS, plus the adjusted current net cash of RM0.32 per share as at end-FY10 versus RM0.42 previously. Nevertheless, given the more than 10% upside, we upgrade our recommendation from Neutral to Buy,' it said in a note Dec 24.
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