Background

EDUSPEC has been at the forefront of providing innovative ICT education programs for schools from Kindergarten to 12th Grade since 1984 through its subsidiary Dynabook Computer Centre. A public listed company in Malaysia, having operation both in Malaysia and Singapore, and with associate companies in Indonesia, Vietnam and China, Eduspec promotes educational activities, research and development of new innovative educational products throughout the Asia Pacific region.

EDUSPEC products and services include IT learning labs, Language labs, Digital School System, School Management System, School Library System, e-learning, Learning Management System, innovative programs such as Robotics, DynaMice, SWIPE and etc.

Why EDUSPEC ?

Growing Sales and Profit plus Bright Future Prospects

Eduspec posted net profit of RM7.17 million, a quantum jump of nearly 440% against RM1.33 million achieved a year ago, driven by strong revenue growth. The electronic learning providers fourth quarter revenue more-than-doubled to RM29.06 million, from RM11.75 million in the previous corresponding quarter, due to increased sales from its sale of goods segment, which lept almost four times to RM22.59 million, from RM5.79 million a year ago.

The increase was mainly due to the sales of education tools for the digital schools and dual language lab/ iPad mobility system segment, it said in its financial results release today. For the full year, net profit was eight times higher at RM6.85 million, from RM0.854 million a year ago; while revenue stood at RM58.42 million, up 71.4% from RM34.09 million in 4QFY13.

On future prospects, EDUSPEC intends to continue to grow its products and services in Indonesia, Vietnam and Philippines; and expects to achieve higher revenue contribution from such overseas ventures. The group notes that the governments of several developed countries have transformed their education policy for K-12 segment (Kindergarten to year-12 of school education), encouraging private sectors to be more involved in the public school education. The group identifies this to be an opportunity, and will continue to deliberate further on this matter, it said, noting it will continue its effort to improve its performance, amid a competitive education sector.

I would prefer to buy EDUSPEC rather than SMRT or MEGB as the price is much cheaper. I believe the potential gain after 6 months will be much much better than other education related stocks.

Quarter Result: