Prestariang: Taking The Next Step (PRES MK, Outperform, TP: RM1.61)

• Background. Prestariang was established in 2003 under the leadership of an academician Dr. Abu Hasan Ismail, who is currently the largest shareholder of the group. Prestariang‟s major business is in the provision of Information and Communication Technology (ICT) training and certification as well as supply of software licenses for large groups of users or organizations. Both services are highly synergistic to each other in which the services come in a bundle for every customer.
• Long-term plans in the pipeline. To actively grow its business and achieve new milestones, the group has lined up a list of stages in expanding its businesses over the next 4 years and to attain revenues of RM400m. Some of these plans include setting up a boutique university, developing more in-house programmes, bringing in new partners, securing more new contracts from government agencies, diversifiying its existing programmes and marketing its in-house programmes regionally.
• Strong earnings growth. We expect earnings growth will range from 10% to 17% for the next 3 years driven by its various projects and programmes, namely 3P, 1 CITIZEN, Managing University Software as an Enterprise (MUSE), 1 Malaysia Netbook, licensing subscription for public university students and other smaller projects as well as its home-grown programme, IC CITIZEN. We also see potential contribution from the upcoming boutique university.