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Introducing Prestariang Berhad...
What I like about PRESTARIANG is that it has join-effort with Ministry of Education to train teachers on how to integrate ICT in teaching and learning in the class, trained approximately 100k over 3 years 2004 ~ 2007. Established 5 competency centers for students from all higher learning institutions to utilize them as training centers (USM, UUM, University Malaysia Terengganu, University Malaysia Sarawak and Politeknik Ibrahim Sultan. Provider license for Microsoft and Autodesk(dimension design and engineering software for higher learning). We do like company that has government's project ... :-)
Let look at number which will make more sense... (before bonus issue 5 May 2014)
Fundamental Analysis Base on Annual Report 2013 :
- Trailing 12 months Dividend yield of 3.06% ( Almost same with Bank's interest rate) -
- Trailing 12 months ROE 21.71 efficiency company (Average for 3 years 2011 ~ 2013 before bonus share is 47.8%)
- Average EPS growth rate is 41% huge jump 2010 (7.76 cent) to 2011(16.19 cent) , if take latest past 2 years to be more accurate the average 8.84%
- Debt ratio 0.02% = Total Liabilities / Shareholder Funds ( excellent !! )
- Gross Profit Margin = Gross profit / Revenue. For past 2 years--> 47% for 2012 and 56% for 2013
- PE for 20.48 (for industrial TTM 27.58 and sector 12.96 )
From 2013 Annual Report :
- Revenue increase
8.5% end of year 2013
- Cost of sales reduce ~10% - Good !
- Margin gross profit 56% - Good !
- Balance sheet :
- Admin Expenses increase ~30% - Need Improvement !
- Reduce in cash & bank balances ~26% (Trade receivables increase ~18%) from RM 61.3mil to RM45mil - Need Improvement !
- Current borrowing decrease ~5.5% - Good !
- Long term borrowing decrease ~19% - Good !
- Net Asset increase ~21%- Good !
- Cash flow :
- Change in trade and other receivables RM 365k to RM 4.33 mil - Need Improvement !
- Change in trade and other payables RM 4.5mil to -RM3.9mil - Need Improvement !
- Profile for each
segmental Revenue :
- ICT Service Training and Certificate increase y-o-y 76% - Good !
- Software License Distribution and management decrease 22% - Need Improvement !
- Overall group profit increase by 8%- Good !
- Future activities:
- Establish Joint Venture with YPJ Holding look into the proposed academy in Johor for Petroleum Academy Malaysia provide skills and up-skilling training in oil and gas to youth, Industry sources say that they need 50k ~70k new skilled workers in O&G sector - meet Refinery and Petrochemicals Integrated Development (RAPID) in Pengerang Johor
- UniMY university campus which will be able to handle 3k students annually (only 51 students currently record RM 6.6m loss in FY13, management is taking necessary measure to turn around and targeting break-even for UniMY in 2014) need 500 students for break even. Believe some improvement will be done on this.
- Provide up-skill for English language teachers from 4-5k government school teachers over 2 years
- Recurring revenue from Microsoft and Autodesk(Ministry Education), but focus on expand its homegrown IP like Smart_geen and Pro-ELT (upskilling for English language teachers)
Current Status As of 18 May :
Year-On-Year Revenue Report:
Quarter-by-Quarter Report:
Summary :
- Prestariang showing good fundamental with Dividend yield of ~3% , high ROE and excellent gross profit margin. Profit quarter by quarter on track comparing with previous year quarter, profit attribute to share holder uptrend year on year.
- Cash flow was reduce from RM61mil to RM45mil, cost of admin expense & receivable increase significantly need to closely monitor.
- For future profit will largely depend on ICT training as we seeing license distribution profit largely reduce in year end 2013. Improvement on the UniMY intake should see significant recovery as management is focusing to get break-even for their money.
- Joint venture for establishing O&G academy in Johor will be the main focus for Prestariang as O&G sector is outperform with project distribute thru out the year and more skill workers are needed.
Thanks,
Tony Quah
