Prestariang posted 4QFY12 core earnings of RM10.4m while its FY12 net profit ofRM37.3m was within expectations, making up 98.1% of our forecast. 4QFY12 net profit ticked up 1.6% q-o-q but dipped 1.7% y-o-y, pulled down by start-up expenses incurred by its new university during the quarter. Management has declared a final DPS of 3.0 sen, bringing its FY12 DPS to 10.0 sen, for a payout ratio of 59%. Maintain BUY, with our FV tweaked slightly to RM2.11 as we update our FY12 numbers, and based on an unchanged 10x FY13 PE.
Within estimates. Prestariang’s FY12 revenue of RM110.1m fell by a marginal 1.5% y-o-y due to lower contribution from the company’s training and certification division. Nonetheless, its FY12 core earnings jumped 10.9% higher y-o-y to RM37.3m on better margins achieved during the year. On a quarterly basis, its 4QFY12 revenue slipped 25.7% y-o-y and 31.4% q-o-q to RM24.2m due to slower billings during the quarter. However, the company’s 4QFY12 net profit ticked up by 1.6% q-o-q but was 1.7% lower y-o-y to RM10.4m, attributed to one-off expenses incurred in setting up its new boutique university, University of Computer Science and Engineering (UniMy), during the quarter.
Another generous dividend. Prestariang has declared a final DPS of 3.0 sen, bringing its FY12 DPS to 10.0 sen, which translate into a generous payout ratio of 59% as well as an appealing yield of over 10% for FY12. In view of its light asset business model, we see the company paying a DPS of 11.0 sen for FY13 and 12.0 sen for FY14, representing a lucrative more than 9% yield over the next two years.
BUY. We continue to like Prestariang’s long-term fundamentals as well as its appealing valuation. With UniMy well in place, the group may see this income stream potentially generating RM15m to RM20m in recurring earnings annually. Management said efforts are underway to secure more O&G-related training jobs. Overall, we make no changes to our core assumptions but tweak our FY13 and FY14 estimates slightly lower by 2%-3% as we update our model following the release of the company’s FY12 results. Maintain BUY, with our new FV at RM2.11, based on an unchanged 10x FY13 PE.a
Within estimates. Prestariang’s FY12 revenue of RM110.1m fell by a marginal 1.5% y-o-y due to lower contribution from the company’s training and certification division. Nonetheless, its FY12 core earnings jumped 10.9% higher y-o-y to RM37.3m on better margins achieved during the year. On a quarterly basis, its 4QFY12 revenue slipped 25.7% y-o-y and 31.4% q-o-q to RM24.2m due to slower billings during the quarter. However, the company’s 4QFY12 net profit ticked up by 1.6% q-o-q but was 1.7% lower y-o-y to RM10.4m, attributed to one-off expenses incurred in setting up its new boutique university, University of Computer Science and Engineering (UniMy), during the quarter.
Another generous dividend. Prestariang has declared a final DPS of 3.0 sen, bringing its FY12 DPS to 10.0 sen, which translate into a generous payout ratio of 59% as well as an appealing yield of over 10% for FY12. In view of its light asset business model, we see the company paying a DPS of 11.0 sen for FY13 and 12.0 sen for FY14, representing a lucrative more than 9% yield over the next two years.
BUY. We continue to like Prestariang’s long-term fundamentals as well as its appealing valuation. With UniMy well in place, the group may see this income stream potentially generating RM15m to RM20m in recurring earnings annually. Management said efforts are underway to secure more O&G-related training jobs. Overall, we make no changes to our core assumptions but tweak our FY13 and FY14 estimates slightly lower by 2%-3% as we update our model following the release of the company’s FY12 results. Maintain BUY, with our new FV at RM2.11, based on an unchanged 10x FY13 PE.a
Source: OSK
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