Masterskill closed FY12 in the red with a core loss of RM28.3m, significantly higher than our projected net loss of RM20.8m. It sank deeper into the red in 4QFY12 with core losses of RM12.8m. We attribute this to continued weakness in its new registrations. Following the internal transition of coverage, we have revisited and revamped our financial model. We keep the stock as a NEUTRAL based on adjusted FV of RM0.63 which is tagged to 0.7x FY13 P/NTA.
Deeper in red. Masterskill’s FY12 revenue of RM148.8m was 40.5% lower y-o-y due to subpar student enrolments. Correspondingly, its net profit plunged 173.9% y-o-y to a core loss of RM28.3m as operating expenses shot up. On a quarterly basis, it registered 4QFY12 revenue of RM30.3m while net losses widened to RM12.8m (66.9% q-o-q; >100% y-o-y).