Monday, November 21, 2011

RHB Research maintains Underperform on Masterskill, unch FV RM1.05

KUALA LUMPUR (Nov 21): RHB Research Institute is maintaining its Underperform call on Masterskill Education Group Bhd.

It said on Monday that its fair value is unchanged at RM1.05, based on a target FY12 PER of 8.5 times.

'We believe that Masterskill's lower earnings trend will continue into 1H12 as Masterskill continues to incur higher operating costs in line with its expansion,' it said.

RHB Research said although Masterskill should not be affected by the recent proposed changes to the PTPTN loans, with around 96% students taking the loans, Masterskill is susceptible to future changes in the loans.

'Furthermore, Masterskill's high foreign shareholding of 46.4% continues to expose the company to volatile portfolio flows,' it said.

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