Singapore Stock Market News

Overseas Education Ltd - Earnings visibility - high!

StockFanatic
Publish date: Wed, 14 Aug 2013, 11:19 PM
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OEL's 1H13 sales were in line with expectations but core net profit was 7% above. Results benefitted from the hike in tuition fees. The next news flow that will excite the market is further updates on the progress of its new campus in Pasir Ris.

1H13 core net profit came in 7% above. Our cost assumptions were too aggressive. Moderating our cost assumptions and factoring in the latest tuition fee guidance, core EPS rises 10-22% over FY13-15. With a WACC of 8.1% (previously 7.6%), our DCF-based target price rises to S$0.95. Outperform maintained. Catalysts will be an earnings step-up when the new campus is completed.
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