Thursday, September 29, 2011

OSK Research maintains Neutral on HELP

KUALA LUMPUR: OSK Research is maintaining its Neutral call on HELP International Corp Bhd with fair value at RM1.99.

It said on Thursday, Sept 29 that HELP's 9MFY11 core earnings of RM13.5 million (excluding one-off setup cost of RM4.0 million for its new campus) is deemed in line with both consensus and its expectation at 63% and 65% of the estimates respectively given seasonal factors.

'Nonetheless, we slash our core earnings forecasts by 17%-20% based on lower student net-adds as well as average fees as risks of earnings shortfall spike up amidst stiffening competition.

'Having said that, we maintain our NEUTRAL call given the recent weakness in share price, which has slumped 11% over the last week. Our FV now stands at RM1.99 based on an unchanged 12 times FY12 PER plus its net cash per share of 38 sen as of July 2011,' it said.

No comments:

Post a Comment