PRESBHD (5204) : CIMB Research maintains Add on Prestariang
KUALA LUMPUR: CIMB Research has maintained its Add rating on Prestariang with a raised target price of RM2.94, based on 19.2 times target P/E.
In a note on Friday, the research house said Minister of Education II Datuk Seri Idris Jusoh launched the first phase of the country’s Big Data Competency Centres (BDCC) initiative, involving four universities and one polytechnic.
The BDCC is a joint initiative between Prestariang and the Ministry of Education (MOE).
Prestariang will manage the centres and courses under the existing 13P and 2MUSE programmes, it said.
"The BDCC development is a positive surprise to us. Based on industry sources, the country’s demand for big data analytics specialists is expected to increase five times from around 4,000 currently to 20,000 by 2020.
"We have not assumed any earnings contribution from BDCC. In addition, we expect new corporate developments at UniMy towards year-end. At its 2Q14 briefing, Prestariang said that a third-party expressed interest in acquiring a stake in UniMY," it said.
CIMB urged investors 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.
http://www.thestar.com.my
KUALA LUMPUR: CIMB Research has maintained its Add rating on Prestariang with a raised target price of RM2.94, based on 19.2 times target P/E.
In a note on Friday, the research house said Minister of Education II Datuk Seri Idris Jusoh launched the first phase of the country’s Big Data Competency Centres (BDCC) initiative, involving four universities and one polytechnic.
The BDCC is a joint initiative between Prestariang and the Ministry of Education (MOE).
Prestariang will manage the centres and courses under the existing 13P and 2MUSE programmes, it said.
"The BDCC development is a positive surprise to us. Based on industry sources, the country’s demand for big data analytics specialists is expected to increase five times from around 4,000 currently to 20,000 by 2020.
"We have not assumed any earnings contribution from BDCC. In addition, we expect new corporate developments at UniMy towards year-end. At its 2Q14 briefing, Prestariang said that a third-party expressed interest in acquiring a stake in UniMY," it said.
CIMB urged investors 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.
http://www.thestar.com.my
