Monday, March 28, 2011

OSK Research: HELP earnings within expectations

KUALA LUMPUR: OSK Research said HELP International's the 1QFY11 earnings were within its expectations although HELP only recorded a net profit of RM2.73 million, or about 11.9% of its full-year forecast.

It said on Monday, March 28 this was due to seasonal factors whereby 1Q typically accounts for about 10%-15% of the company's full-year earnings.

On-year revenue ticked up by 3.3% while net profit rose by some 12.7% on better margins arising from an increase in its home-grown courses.

'We maintain our forecast and BUY call at a higher FV of RM2.82 from RM2.59 previously after rolling over our EPS from FY11 to FY12 at 14x PER, plus its net cash per share of RM0.32 as at end-FY10.

'HELP is a sustainable growth story in defensive sector driven by a strong and focused management team with a proven track record,' it said.

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