Prestariang

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Insurer AIA ups stake in Prestariang BY JOSEPH CHIN

KUALA LUMPUR: Insurer AIA Bhd raised its shareholding in Prestariang Bhd to 29.62 million shares or 6.12%.

A filing with Bursa Malaysia on Thursday showed AIA bought a total of 3.43 million shares on Aug 28 and 29. It bought 1.69 million shares on Aug 28 and 1.73 million shares the next day.

According to Prestaring’s website, it offers over 60 globally recognised certification courses nationwide in partnership with companies including Microsoft, Autodesk, IBM and Oracle.

Prestariang is also involved in training to up-skilling and re-skilling for the oil and gas sector.
It also ventured into education business and launched University Malaysia of Computer Science and Engineering (UniMy) in January 2013. It focused on specialised computer science and engineering education.

Its share price has risen from RM1.40 at the start of the year to RM2.02 as of Thursday following positive coverage from analysts. It hit a high of RM2.36 on July 27.

Source: The Star

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Three shortlisted for English Language Proficiency Teaching job BY TEE LIN SAY
Aug 25, 2014

PETALING JAYA: Three education providers, SMRT Holdings Bhd, Prestariang Bhd and privately held E-Graduate.net Sdn Bhd have been shortlisted to undertake a RM5mil English Language Proficiency Teaching blended learning pilot project spearheaded by the Education Ministry (MoE), according to sources.

The three-month pilot project will involve 2,000 English Language teachers in primary schools. It is the prelude to a full-fledged RM100mil contract to train 10,000 teachers.

The course involves e-learning and face-to-face learning on the English subject.

While SMRT will train 1,000 teachers, Prestariang and E-Graduate will train 500 students each.

“Although the contract amount for the pilot phase is small, it is important that the education players implement it well, as the successful completion of this phase will result in a full-fledged RM100mil English Language Proficiency Teaching contract being awarded,” said the source.

The source said that Key Performance Indicators have been set for this pilot project and the education player that fulfils the requirements will have the edge for the job to train the 10,000 English teachers.

There is a possibility that the players share the contract.

Meanwhile, a two-year English proficiency project valued at RM70mil was awarded to the British Council by the MoE early this year. The contract also involved training some 10,000 English teachers.

There are some 70,000 English language teachers from a total of 500,000 teachers in Malaysia.

“The MoE is urgently looking to up the standard of English among students. To fast track this target, it needs to enlist the help of the local education players. The Government is going to make it a requirement that English teachers must pass the Cambridge English Placement Test (CEPT),” said the source.

Earlier this month, Second Education Minister Datuk Seri Idris Jusoh said the MoE would have 40,000 qualified English teachers through the CEPT to help improve the command of the language among students.

He said 5,000 students throughout the country had successfully taken the advanced training programme provided by the British Council.

Meanwhile, all three education players appeared to be recipients of government education projects.

Late last year, SMRT Holdings was granted a two-year extension contract by the MoE for an English Language teaching programme in primary schools for RM60mil.

SMRT is up 280% on a year to date basis at its price of 83.5 sen.

As for Prestariang, it has been the darling education stock over the last two years with its share price appreciating almost 300% at its last price of RM2.24.

Prestariang recently collaborated with the MoE on a national project to make Malaysia a regional hub for digital content. The Government intends to introduce 3D design and software to be made accessible to all national schools for free.

Over the last seven years, Prestariang has trained and certified 40,000 students for the information and communications technology sector.

Egraduate.Net, which calls itself an “Innovater in learning” is a certified 1Malaysia Training Programme provider.

Under the programme, it targets to train the workforce under the upskilling and reskilling programmes to create a pool of competent, well-trained and skilled workforce.

Source: The Star

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RHB Research keeps Buy call on Prestariang
June 26, 2014

KUALA LUMPUR: RHB Research is retaining its Buy call on Prestariang Bhd with a fair value of RM2.25, which is 19% above its last traded price of RM1.89.

It said on Thursday the company had proposed to place out up to 44 million new shares (10% of its outstanding share base of 440.0 million) to raise between RM70mil and RM80mil.

“We expect management to utilise the proceeds on new projects, which we believe will soon be unveiled, to beef up its recurring earnings base. Maintain Buy for now, with our fair value fine tuned to RM2.25 (or RM2.05 post-completion of the exercise),” it said.

RHB Research said the price of the new shares would be at not more than a 10% discount to its volume-weighted average price for the past five trading days.

“We estimate that the exercise, which could raise net proceeds of MYR70m-80m, will be completed by end-Q3, 2014,” it said, adding the company would use the proceeds to develop and expand the existing business.

The research house pointed out Prestariang is sitting on net cash of close to RM60mil as of Q1,FY14. Netting off the first interim dividend per share of 1.25 sen, it would still have RM54.5mil net cash. After the placement, this was expected to jump to RM125mil to RM135mil.

RHB Research pointed out that judging by the management's past track record of keeping its balance sheet clean and its minimum 50% dividend payout policy - on top of its existing business requiring minimal capex - the proceeds from the private placement would most likely be used to expand its recurring earnings base.

“This is consistent with management's move to set up the University Malaysia of Computer Science & Engineering back in 2013. Given that the university is still in the red, we believe that management is likely on the lookout for other opportunities to bring in a recurring revenue stream,” it added.

Source: The Star

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Building the base for creative industry BY LUWITA HANA RANDHAWA
June 22, 2014

IN line with the long-term aim to make the country a regional hub for digital content, the government will introduce 3D design and software to be made accessible to all national schools for free.

Second Education Minister Datuk Seri Idris Jusoh said the move was to help enhance the level of creativity and innovation in students, thereby building the foundation for Malaysia’s creative industry.

The ministry had collaborated with Prestariang Berhad and Autodesk Malaysia, for the initiative in all primary and secondary schools.

It was in line with producing world-class creative content and putting Malaysia on the map for digital content, he said at the launch of the 2014 Autodesk Malaysia Design Competition in Putrajaya recently.

Also present at the event were Prestariang Group chief executive officer Dr Abu Hasan Ismail, Universiti Teknologi Mara vice-chancellor Prof Tan Sri Dr Sahol Hamid Abu Bakar, Universiti Malaya vice-chancellor Prof Datuk Dr Mohd Amin Jalaluddin and Universiti Putra Malaysia deputy vice-chancellor (Research and Innovation) Prof Dr Mohd Azmi Mohd Lila.

“I urge all schools to take the opportunity to integrate Autodesk technology in their classrooms.

“It will be rolled out in stages. The aim is to first provide access to the software and then integrate it into the school curriculum,” added Idris.

The software, he added, was already available to tertiary students at all higher learning institutions in the country where they could download it for free and use for three years.

The range of the software offered were priced between RM30,000 and RM40,000.

The competition, which is open to all full-time undergraduate and postgraduate students, is open for registration until Sept 15.

Themed “Go Beyond”, participants will have to submit a sustainable and innovative design project utilising Autodesk software.

Up for grabs are RM50,000 worth of grand prizes and a chance to represent Malaysia at the 2014 Autodesk Panorama convention, tentatively to be held in Las Vegas, in the United States.

To further drive the performance and standards of local students, this year’s instalment sees the establishment of Special Interest Groups (SIGs) in Architecture, Engineering and Construction, Manufacturing and Media and Entertainment.

UPM, UM and UiTM have been appointed as SIG champions respectively in these areas.

Source: The Star

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Prestariang Q1 profit lower
May 29, 2014

KUALA LUMPUR: Prestariang Bhd pre-tax profit for the first quarter ended March 31, 2014 decreased to RM6.4mil from RM9mil in the same period last year.

Revenue slipped to RM20.59mil from RM26.2mil previously.

In a statement, the company said the lower performance for the first quarter was due to lower sales recorded for its Academy for Information and Communication training following the delay in projects spilling into the second half of 2014.

The group, however, continues to be in a healthy cash position, with RM72mil cash as at May 28 this year.

The group had just completed its 1:1 bonus issue on May 5, expanding its total paid-up and issued share capital to 440 million shares.

The board of directors have also declared the first single tier interim dividend of 1.25 sen per share.

Source: Bernama

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CIMB Research maintains Add on Prestariang
May 2, 2014

KUALA LUMPUR: CIMB Research has maintained its Add call on Prestariang with a target price of RM2.23, saying that its share price goes ex-bonus issue on Friday.

“Our ex-bonus target price is at RM2.23. A larger issued-share base should help to improve its trading liquidity.

“We maintain our EPS, Add rating and target price, based on 16 times 2015 P/E, in line with its regional peers.

“Positive news flow on Petronas’s Rapid project and strong UniMY student enrolment should help to catalyse the stock,” it said.

It added Prestariang’s bonus issue should boost its issued-share base from 220 million to 440 million shares. Accordingly, CIMB Research’s target price has been adjusted to RM2.23, ex-bonus issue.

“Investors should remain invested, with an immediate focus on the company’s proposed oil & gas training school in Johor.

“If all goes as planned for this school, we believe that management may expand this business to other states in the near future,” it said.

Source: The Star

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not vested

CIMB Research keeps Buy rating on Prestariang
February 21, 2014

KUALA LUMPUR: CIMB Equities Research is maintaining its Buy call on ICT-based Prestariang and raised the target price from RM3.51 to RM3.89.

It said on Friday Prestariang’s FY13 full-year result was at 96% of its forecast but it was broadly in line with market and its market expectations.

“We believe the lower 4Q net profit was mainly due to the higher cost allocated to year-end staff bonuses and continued losses at UniMY. Ex-UniMY losses, FY13 net profit would have been 31% on-year higher.

“The proposed 1:1 bonus issue was a positive surprise and should boost stock liquidity. We raise FY14-15 EPS to reflect earnings from its oil & gas training business and add the FY16 EPS.

“We raise the target price based on an unchanged 14 times 2015 P/E – the sector’s P/E. We maintain our Add rating. Catalysts are securing more oil & gas jobs and strong UniMY student enrolments,” it said.

CIMB Research said although 2013 revenue growth was 8.4% on-year, net profit was 13.2% on-year higher(31% growth excluding UniMY’s RM6.6mil loss) as the higher profit-margin ICT training division was the largest revenue contributor in 2013.

The quarterly interim final DPS was 3 sen and the full year at 12 sen (63% payout ratio), versus its 11 sen forecast. The net cash balance was RM69.7mil or 32 sen net cash per share.

Prestariang’s proposed 1:1 bonus issue was a positive surprise as it should help boost the stock’s liquidity and make it more attractive to retail investors. Once it is complete the issued share base will grow to 440 million shares from 220 million.

“We expect more positive newsflow from Prestariang in the coming months, especially on developments in the oil & gas training business. Prestariang plans to start a major new oil & gas training school in Johor or Sarawak, focusing on welding, pipe-fitting and scaffolding skills. We have added potential earnings from this business to our forecast.

“Assuming the company starts full commercial operations at end-2014, this division should contribute 7 to 8 sen more of EPS (assuming it trains 3,000 students) in 2015.

We have not reflected potential earnings if Prestariang secures the English training teachers contract from the Ministry of Education over the next few quarters,” it said.

Source: The Star

[winston]

not vested

CIMB Research retains Prestaring target price at RM3.14
November 21, 2013

KUALA LUMPUR: CIMB Equities Research is maintaining its target price for Prestariang at RM3.14 and its Outperform recommendation.

It said on Thursday at an annualised 95% of its FY13 forecast, 9MFY13 core net profit was in line with market and its expectations as it expects a strong 4Q.

CIMB Research said 3Q yielded the highest quarterly net profit so far since its listing in 2011. An interim dividend per share of 3.5 sen was declared, in line with its expectations.

“We maintain our earnings per share (EPS) forecasts and target price, still based on 12.5 times CY15 price-to-earnings (P/E) which is our education sector P/E target.

“The stock remains an Outperform. Potential re-rating catalysts include more oil & gas training and software contracts, and strong UniMY student enrolment numbers,” it said.

CIMB Research said Prestariang remains its top small-cap pick. Although 9M13 revenue was only up 3.6% on-year, net profit grew 16.4% mainly due to higher ICT training revenue (ICT offers higher profit margins versus software distribution).

“Excluding the RM4.9mil start-up loss for UniMY, 9M13 net profit on-year growth should have been 34.6%. In 9M13, this division contributed 54% of group revenue compared to only 34% in 9M12. This was due to the more classes conducted for IC Citizen this year,” it said.

On UniMY, it expects full-year start-up losses to amount to around RM6mil but it believes that this university should break even or record marginal profits in 2014.

Prestariang recently acquired an oil & gas training company that is involved in providing technical skill courses, such as pipefitting, welding and scaffolding.

Prestariang also managed to secure from the government a small RM2.3mil contract to provide tradesman skills training to 240 Bumiputera students.

“If all goes well, it should secure more training jobs over the next few months. Prestariang’s balance sheet continues to be in a net cash position, RM50.8mil cash or 23 sen net cash per share as at end-September,” it said.

Source: The Star

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not vested

Prestariang up on analysts' Add call, positive prospects

KUALA LUMPUR: Shares of Prestariang rose at midday on Friday on analysts' Add call and expectations of positive newsflow on a major long-term project with recurring income that the company has been working on in 2014.

At 12.30pm its shares rose eight sen to RM1.51 with some 1.82 million shares done between RM1.44 and RM1.52.

The FBM KLCI was down 3.34 points to 1,812.47. Turnover was 868.61 million shares valued at RM647.19mil. There were 167 gainers, 499 decliners and 274 counters unchanged.

CIMB Research in a note said investors are urged to remain invested in the stock and look to 2015.

"Furthermore, we expect positive newsflow on a major long-term project with recurring income that the company has been working on in 2014. If successful, this project would bring Prestariang to a higher level.

"We believe that there will not be any negative surprises and estimate that 3Q14 net profit will be at a similar level to the RM7mil in 2Q14," it said.

CIMB noted that Prestariang's share price took a beating since the July high, undeserved in view of the positive long-term outlook.

2015 P/E is only at 10.8 times and this does not include potential earnings from the major project the company is working on.

Source: The Star

[winston]

not vested

Stock pick: Prestariang Bhd

This stock has taken a beating over the past six months since reaching its peak of RM2.41 in July 2014 after a few quarters of disappointing results. However, at this juncture, the stock is set for potential re-rating catalysts coming from the Programme for International Student Assessment (PISA) accelerated training (PAP) programme, “IC Citizen” contract extension, and the Microsoft software subscription for all Government ministries.

The haemorrhage from University Malaysia of Computer Science and Engineering, or UniMY, has been mitigated with the emergence of Majlis Amanah Rakyat (Mara) as a new shareholder, guaranteeing 500 sponsored Mara students starting in January 2015.

If one has followed the developments in our education sector closely, one will notice the slew of reforms in the sector, most notably at the primary and secondary levels. The upskilling of teachers and higher pay with higher academic results for teachers has been implemented, the revamp of the UPSR and SPM syllabi to integrate a more holistic base assessment is in motion, and in the nearer term, the next Trends in International Mathematics and Science Study (TIMSS) and PISA survey are due this year.

The PAP programme, in our view, is more crucial than ever and we think that Prestariang will be a major beneficiary of this.

The stock was trading at RM1.50 (P/E of 24.5 times) as of Jan 8, with a dividend yield of 3.3%. There is no real comparable peer in the same segment for Prestariang, as it is a very niche software licensing and ICT training provider to the Government.

UniMY (tertiary) makes up only a very small percentage of its revenue. The consensus target price is at around RM2.04, giving it a 36.2% upside based on the RM1.50 price as of Jan 8.


by AZLAN HUSSIN
Chief Executive officer/Chief Investment Officer,
MIDF Amanah Asset Management Bhd.


Source: The Star