Prestariang is scheduled to release its 1QFY13 results on 22 May. We do not foresee any major surprises and expect its 1QFY13 net profit to be largely in line with our forecasts. We continue to see growth potential in the O&G industry. All in, we maintain our BUY call, with our FV raised to MYR2.36 as we roll over our valuations to FY14, based on an unchanged 10x P/E. 

-   Likely to be within expectations. We expect no major surprises for Prestariang’s upcoming 1QFY13 results set to be released on 22 May. We reckon that the company is likely to register a commendable 1QFY13, given that its new boutique university UniMy is up and running, which would contribute to its recurring income stream.  

-  Attractive dividend payout ratio likely to continue. Given its asset light business model, we expect the company to pay out a first interim dividend of 2.0 sen for 1QFY13. We continue to anticipate a DPS of 11.0 sen for FY13 and 12.0 sen for FY14, which would in turn translate to an attractive yield of approximately 6% to 7% over the next two years.  

- More O&G ventures. Prestariang has recently secured a MYR2m contract frm GEMS Malaysia SB to provide O&G training and certification to 250 university graduates for a period of 18 months. We nderstand that Management is still in talks with multiple O&G companies to offer more Auto-desk software and other certification programmes for the industry. Given that Malaysia’s 13th general elections are over, we continue to see potential growth for the company in this lucrative industry.

-  Maintain BUY.  All in, we continue to like Prestariang’s long term fundamentals and make no changes to our forecasts pending the release of its 1QFY13 results. We maintain our BUY call, with our FV increased to MYR2.36 as we roll over our valuations to FY14, based on an existing 10x P/E. 

Source: Kenanga