Friday, March 4, 2011

MEGB ... Mar11

For the year ended Dec 31, 2010, the healthcare education company’s net profit rose 4.9% to RM102.14 million, or 33 sen per share, with a historical price-to-earnings ratio (PER) of just 5.6 times. Revenue increased 15.5% to RM315.74 million.

As at Dec 31, the company had net cash of RM99.41 million and net assets per share of RM1.27. It paid an interim dividend of seven sen on Oct 13, 2010.

On its prospects, It would focus on three areas of growth, namely student population, course and curriculum offerings, and campus expansion.

Its presence will be enhanced by the newly expanded Kota Bharu and newly opened Kuching campuses. A new university branch campus in Pasir Gudang, Johor, will be operational in 2Q11 and its Kota Kinabalu campus is presently under construction.

Despite concerns over the PTPTN funding issues, Masterskill is confident the possible changes will not affect its students.

Masterskill CEO’s comment that he intends to buy back the company’s shares signals his confidence in the fundamentals of the company.

A complete selldown by Fidelity may remove the overhang on the share price.

News of potential share purchases by the CEO could lead to a re-rating of the stock, along with strong quarterly results.

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