• Prestariang has started the implementation of its JobMatching PTPTN programme, effective 26 July 2018, for a period of one year and may be extended by mutual agreement, the company said in an announcement to Bursa Malaysia yesterday.

• This follows a memorandum of understanding (MoU) entered with Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) on 8 March 2018 to utilise EduCloud, an integrated education platform (IEP) owned by Prestariang, as the digital platform for the management of digital ID, student borrowers’ engagement and job matching. The collaboration aims to drive engagement and employability.

• Recall, the first phase of the collaboration would entail upskilling and re-skilling existing PTPTN borrowers through a "place and train" model — first, match student borrowers with a job in accordance to industry requirements and subsequently provide training to enhance their potential and employability. The programme would incentivise PTPTN borrowers to engage EduCloud to seek valuable trainings/courses.

• Some of Prestariang’s partners which would support the JobMatching PTPTN programme include Amazon Web Services, Alibaba Cloud, CXS Analytics, Encap, Mastercard, Microsoft, OpenLearning, Skillsoft, UniMy and others. The partners would serve to offer their industry courses and job opportunities.

• While we are mildly positive on the development, management has not guided on its financial implications. Intuitively, the collaboration would allow Prestariang to leverage PTPTN's large borrowers base to increase UniMy's student intakes and offer paid training courses through the platform. PTPTN will grant financial assistance up to RM2,000 for each eligible participant under the JobMatching PTPTN program.

• Based on our back-of-the-envelope calculation, this programme will likely contribute circa 2% to the group’s revenue assuming successful placement of the targeted 5,000 students.

• Maintain BUY with fair value of RM1.52/share.

Source: AmInvest Research - 27 Jul 2018