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Thursday, November 21, 2013

Prestariang 柏斯達亮 Q3FY13 High High High

Prestariang Berhad just released its latest quarter report this evening and guess what? It records all time high quarter result in terms of revenue and net profit. That's really high man .. 

In terms of revenue, the group records similar result with corresponding quarter last year. But in terms of profit before tax, the group records a 26% improvement, that's the group highest record so far. This boast its quarter EPS to 5.61 cents too. The increase is mainly caused by increase revenue from its ICT training & certification which help to offset the lower revenue from its software license distribution. 

On the other hand, the education segment as expected is still suffering loss close to RM2m. Anyhow, it's still in initial stage and it's a long term project to bring recurring income to the group in future. 

By comparison with preceding quarter, both segments also record improved result. Management team stated that this was due to higher amount of classes being conducted during the quarter for 3P program. Furthermore, the training and certification carry higher gross profit margin if compared to license distribution, this caused a higher bottom line result. But, they did specify that the 3P and IC Citizen program have seasonal factor as the execution of the programs are based on pre-schedules and will experience peak during the semester breaks. This will probably cause certain low in some quarter due to lower class conducted which in turn lower revenue recorded during the respective quarter. 

In terms of balance sheet, due to the light asset nature, ROE for the group remains high. Low borrowings and high cash in hands. Retained earnings are almost 3 times of share capital. Perhaps a chance of bonus issues to increase the share liquidity? Little bit greedy since the management is quite generous on giving dividend already :)

Apart from that, the group also has RM26m short term investments. Based on my email enquiry to them earlier, it's the group's investment in 2 asset management and the objective of this is to maximize the company's profit and avoid from idle cash. That's a good move to avoid to just let the cash sit comfortably inside the bank. 

Glad to see that 9months EPS is 14.25 cents compared to 12.22 cents last year. Assume a full year EPS will be around 19 cents, this applies a PE of 13.15 based on RM2.5 share price. I foresee limited growth unless revenue from the oil & gas training and university segment become more certain and valid. But it's still good as the group diversify into new business. 

Else way, the management did not provide any update on the 2 newly development programs Smartgreen (green IT principles) and PREC (English language training). Perhaps still in the progress on marketing. 

3.5cents dividend is declared. Another quarter dividend like an income received every 3 months

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