OSK maintains OVERWEIGHT on the sector, as they see local education providers gaining strength in 2012, driven by the Government’s initiatives to spur the private education sector.
Meanwhile, as the PTPTN works towards sorting out its collection woes, there appears to be a growing trend among local institutions to tie up with more reputable foreign institutions, which will further enhance Malaysia’s appeal as an education hub and an alternative destination for foreign students.
SEG International is OSK top buy for its diversified course offerings, asset-light operating model and decent dividend yield. Within the small-cap space, OSK like Prestariang’s sturdy orderbook of
over RM200m and niche focus in the provision of IT-related certification for final year students in public
varsities.
Below are the target price, market capitalization and rating for selected stocks in education sector.
| Stock | Price (RM) | Target (RM) | Market Cap (RMmil) | Rating |
|---|---|---|---|---|
| HELP | 1.71 | 1.55 | 242.9 | Neutral |
| Masterskill | 1.16 | 0.84 | 475.5 | Sell |
| Prestariang | 0.89 | 1.48 | 195.8 | Buy |
| SEGi | 1.75 | 2.17 | 978.9 | Buy |
Source : OSK Research