Decent quarter. HELP's 2QFY12 revenue jumped to RM34.7m (+10.7% y-o-y, +29.4% q-o-q) owing to a higher enrolment base, which we estimate at 12k as of April 2012. Correspondingly, EBIT improved 2.3% y-o-y and >100% q-o-q to RM10.7m while margin improved to 30.7% on higher economies of scale. All in, the 2QFY12 core earnings stood at RM7.0m, up 8.1% y-o-y and >100% q-o-q. On a cumulative basis, the 1HFY12 revenue of RM61.6m (+10.6% y-o-y) was within our expectations at 52.5% of our full-year forecast while core earnings came in at RM8.7m (-5.6% y-o-y), comprising 55.0% of our full-year estimates.

Firming up financing for new campus. Management is in the midst of finalizing the financing for its proposed RM150m Subang 2 campus in Sungai Buloh. In view of the magnitude of the capex required, we do not discount the possibility of the company making a cash call in the form of a rights issue. Having said that, our checks with sources indicate that the group could also potentially settle for a sales-and-leaseback arrangement, in adherence to its asset-light operating model. We understand that management is currently in talks with some Real Estate Investment Trusts in town and expect a decision to be made known next month.