Masterskill to venture into business programmes with Newcastle

Written by Joseph Chin of theedgemalaysia.com 
Wednesday, 27 April 2011 19:10

KUALA LUMPUR: Masterskill Education Group Bhd (MEGB) is venturing into the provision of undergraduate business programmes in a tie-up with The University of Newcastle.

MEGB said on Wednesday, April 27 the proposal covered the bachelor of business and bachelor of commerce programmes.

It said under the arrangement, students who had successfully completed Part One of the programme at Masterskill, Newcastle will give one year (80 units) advanced standing into Part Two of the programmes.

“This agreement is in line with Masterskill’s planning for its diversification into other fields of education,” said the company.

MEGB is principally involved in the provision of education in nursing and allied health sciences in the healthcare industry.

MEGB said it would market the programmes in Indonesia and Malaysia and be responsible for advertising. It would also be responsible for all local programme administration and organise student enrolments.

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投资者通常是根据每股净有形资产、每股净利或是周息率，来评估股票的价值，根据这些标准作出的评估，往往流于表面化。

股票的价值，还应该将企业的“隐形资产”考虑在内，才比较精确。

隐形资产被忽略

许多上市公司，实际上拥有宝贵的“隐形资产”，这些隐形资产多数属于无形资产（INTANGIBLE ASSETS），所以很容易被投资者忽略。

其实，隐形资产往往比有形资产（TANGIBLE ASSETS），价值更高。

居领导地位

妈咪大宝达（MAMEE）日前宣布以每股4令吉39仙，将该公司私有化，出价等于妈咪每股净有形资产价值1令吉70仙的2.57倍。

该公司的大股东，显然是着眼于该公司产品的强劲品牌。

妈咪多种产品，在市场中居于领导性地位，是很宝贵的隐形资产。

隐形资产通常隐藏在以下领域

1. 品牌

品牌是无价之宝，切勿以有形资产价值（NTA）来评估名牌产品的股票。

2. 技术

达业集团（TATGIAP)将子公司的控制权出让给日本钢铁，目的就是获取日钢在电镀方面的技术及将产品打进大马的日本厂商市场。

3. 市场网络。

4. 市场领导地位。

5. 地产增值

许多制造业、产业及种植业公司所拥有的地产，仍以20年前的价值入账（请注意各公司年报中“地产名单”的地产买进日期及入账价）。

6. 机器设备价更高

过去1000万令吉的机器设备，现在要2、3千万才买得到，创设同样规模的工业，现在的投资额更大。从“替代成本”（REPLACEMENT COST）的角度看，资产肯定已被低估。

7. 人才及企业掌航人的经验。

8. 信誉

崇高的形象也是宝贵的隐形资产。

挖掘第二、三线股的隐形资产，选购被股市忽略、股价徘徊不前，却有强劲基本面的股票，耐心坚守，可获可观回报。

Masterskill’s strategic move into Indonesia

  Written by Financial Daily
  Thursday, 14 April 2011 11:48

Masterskill Education Group Bhd CEO Datuk Seri Edmund Santhara is an avid chess player. And like a game of chess, yesterday’s announcement of Masterskill’s venture into Indonesia is the latest in a series of strategic moves after two earlier major “checkmates” — the threat of lower PTPTN (National Higher Education Fund Corp) funding and persistent selling of its shares by foreign portfolio funds.

Of the two checkmates, analysts believe concerns over the large PTPTN deficit are overblown. Masterskill is appealing against PTPTN’s new ruling that caps loans at RM45,000 for new courses. Analysts believe that the new loan ruling, if implemented, would still cover more than 75% of a typical tertiary course.

Analysts also note that the government was unlikely to stop funding the programme, which was an important initiative to help students finance their higher education. Rather, they note that the fund will tighten the debt collection process.

The other setback was the persistent selling of Masterskill’s shares by two US-based portfolio funds — Smallcap World Fund Inc and Fidelity Management and Research LLC. On a positive note, the selling appears to have ended, given the large amount of shares traded since they ceased to be substantial shareholders in mid-February this year.

Indeed, Masterskill’s stock has rebounded by 36.5% to RM2.28 yesterday, from its mid-March low of RM1.67. Apart from the likely end of foreign selling, there was also positive news flow, including results for 2010 that met analysts’ expectations, generous dividends and the latest Indonesian venture.

The company’s full-year net profit for 2010 rose to RM102.1 million from RM97.4 million, after which it declared a final single-tier dividend of 7.9 sen.
Total single-tier dividends of 14.9 sen for 2010 gave the stock a high net dividend yield of 6.5%.

The latest positive move involves its venture into Indonesia, confirming The Edge Financial Daily’s earlier report on April 7, 2011.

Yesterday, Masterskill announced that it has entered into an MoU with PT Sejahteraraya Anugrahjaya Tbk (PTSA) to develop academic exchange and cooperation in the teaching and training of Masterskill students at the Mayapada Hospital owned by PTSA.

More significantly, the MoU involves forming a joint venture to establish Universitas Masterskill-Mayapada in Indonesia.  It added that the university will offer programmes in nursing and allied health education, similar to those offered by Masterskill in Malaysia. This follows an earlier subscription by Masterskill in PTSA’s IPO.

The move into Indonesia will boost Masterskill’s geographical base, which is critical as the company has a relatively narrow, specialised product base.

Indeed, analysts say one major disadvantage that Masterskill has compared with other education peers such as HELP International Corp Bhd and SEG International Bhd is its narrow focus on nursing and healthcare-related courses. The other two listed colleges offer a wider choice of courses, catering for a broader spectrum of society.

An analyst notes that there will come a time when the Malaysian market, with its small population of about 28 million, will become saturated with nurses and healthcare personnel. Masterskill will have to either expand its product offering or market reach.

Given that its niche and branding is largely in healthcare and nursing education, going into new markets will be a better near-term strategy, analysts say, although it can expand into other healthcare-related courses.

Indonesia, with its 230 million population, annual GDP growth of over 5% and a rising middle class, serves as a good diversification platform for Masterskill.

Indeed, Malaysia’s small size does have limitations. Even HELP, which is already diversifying its courses and market reach locally, is expanding abroad — to Indonesia, Vietnam, China and elsewhere — mostly through twinning affiliations with small local colleges. Masterskill’s setting up of a full-fledged university is on a far more ambitious scale, and is a calculated strategic move by Santhara.

Many Malaysian companies have made it big in Indonesia, especially those in the banking and finance, plantations and telecommunications sectors. Only time will tell if Masterskill will be the next success story there.

Masterskill, CEO to invest US$3m each in Indonesia JV

Written by Joseph Chin of theedgemalaysia.com   
Wednesday, 13 April 2011 14:02

KUALA LUMPUR: Masterskill Education Group Bhd (MEGB), its group CEO and PT Sejahteraraya Anugrahjaya Tbk (PTSA) are teaming up to look into the setting up of a university in Indonesia.

MEGB said on Wednesday, April 13 its unit Masterskill (M) Sdn Bhd had signed an MoU with PTSA and MEGB  group CEO Datuk Seri Santhara Kumar A/L Ramanaidu to work together to teach and train MEGB’s students at the Mayapada Hospital. The next step is to form a joint venture company in Indonesia to set up Universitas Masterskill – Mayapada in Indonesia.

“The parties proposed to form a JV company in Indonesia with proposed paid-up capital of US$10 million wherein MEGB and Santhara will each hold a 30% stake and the remaining 40% by PTSA," it said. MEGB and Santhara would each invest US$3 million and PTSA US$4 million in the JV.

PTSA is listed on the Stock Exchange of Indonesia and is the owner of Mayapada Hospital in Indonesia.

Under the MoU, PTSA shall be responsible to obtain all approvals and consents for the establishment and operation of Universitas Masterskill–Mayapada.

The university will offer programmes in nursing and allied health education similar to the programmes offered by Masterskill University College of Health Sciences and Masterskill College of Nursing and Health.

MEGB said Masterskill would provide the standard operating procedures, curriculum and guidelines relating to the programmes in nursing and allied health education to be offered by Universitas Masterskill–Mayapada.

The parties would be responsible in renovation works to the buildings of Universitas Masterskill–

Mayapada.

They would also be jointly responsible and take reasonable steps in the recruitment of students to study in Universitas Masterskill–Mayapada.

Rational Analysis = Fundamental + Technical: What is CAN SLIM?

Rational Analysis = Fundamental + Technical: What is CAN SLIM?: "My note: this stock pick methodology may apply to markets like DOW. But it is not likely workable for stocks in KLSE. CAN SLIM is In..."

Tips on Investing in Bursa Malaysia

posted by Smart Investor | 2:39 AM

Most of the peoples I surveyed losing money in trading or investing in Bursa Stocks Exchange Market. Investing in Kuala Lumpur Bursa Stocks Exchange will never be rewarding if you do not follow the some basic investing rules. I would like to share my two cents view on how to make money from Bursa Stock Exchange: -

1. Invest only in companies which consistently make considerable
profit through out many years after listed.
You should only invest on those companies consistently make profit through out many years. For my own guide lines, it should be at least 5 years after listed. By observing this rule, you are able to make sure yourself that you only invest in the companies which the management are capable to manage the companies well and consistently making profit for the companies and the shareholder like you. More importantly, you will prevent yourself to buy the companies who the management or big boss only interested to make money from Initial Public Offering and runaway after cheated investors money. Thus, new IPO stocks will never be in my portfolio so far. My golden rule to myself, although making profit is my high priority, prevent making loss is even higher. Thus, I will never consider new IPO stocks or any stocks without make considerable and remarkable profit over the past 5 years.

2. Invest in the people, not only the company.
Before I invest, I will ask this question, who own this company? Who manage the company is this person capable? Is this person trusted? Is this person managing the company well? What is his past record of managing the companies? For example, I have known that Tan Sri Teh Hong Piow is really a capable person by knowing his style, his management skill and more importantly, his integrity. I have studied the performance of his public bank for many years and concluded that he is really a genius to manage the bank. Thus, when his stock London Pacific Industries being listed, I will not give second thoughts before I invest in London Pacific Capital by trusting Tan Sri Teh. Ask yourself, if your got money and you want to invest in business, will you join venture with your friends who have cheated you before, or who have cheated many peoples before, you should know his character since he is your friend. However, if you know the person well, who is capable and honest, I believe you will feel more comfortable and secure by joint venture with him. Likewise to the stocks market, you should never invest in the stocks that you don’t know the management or the boss well, who may eventually collapse the companies and cheat all your money away. A good examples for capable and honest person like Tan Sri Dato' Lee Shin Cheng(IOI, IOI Property) and Robert Kuok Hock Nien ( PPB, PPB Oil, etc) . DiGi CEO Morten Lundal (DIGI) is really another genius I knew. For all the foreign owned companies like Nestle, Dutch lady, BAT, MOX, Shell, etc, they are manage by good management with good company culture, and you can be assured that your money invested are really go to the business and eventually will make money for you. For local companies, you shall be more selective and careful, and make sure you choose the right company with capable person, and more importantly, honest person who will not eat your money.

3. Invest in companies which the nature of business will never losing money or the chance of losing money is very slim.Where got companies never losing money? Hur....to answer this question, I think I can name a few. For example, Bursa is one of them. Bursa earns money by earning commissions from you when you trade stocks. The more you trade the more Bursa earn. The less you trade the less Bursa earn. Their overhead and expanses are low and their business model is simple. It is a matter of low profit or high profit and the risk of losing money is minimal. If some play contra and suffer huge loss and runaway to Thailand, who bear the loss? Securities firm and the remisier, not Bursa. Thus, you should choose Bursa instead of any securities firm. Another good example is Nestle, you drink MILO, your children will drinks MILO, your children's children will drink MILO, and so what is your worry? If you think investing in those companies will never make significant profit, then I will prove you wrong. One of my favorite stocks Dutch Lady has gone up more than 200% after I bought it, and I still hold it, and I still believe it will consistently make profit and give high dividend! Thus, I have give you the principle here, you got to do your homework to find which companies business model is so simple that will sure make profit ! 3. Invest in companies really pay out the dividend. The principle is simple, what showed in the financial report may not be the real money, only those companies capable to pay it out is real money. I don want to discuss more on this too simple logic. You can find the high yield stocks easily in Bursa market.

4. Invest in big capital stocks or small capital who owned by the big capital stocks.Based on the past records, most of the companies suffer huge loss are from small capital of main board, second board and mesdaq. Thus, you should avoid these stocks. If you really want to invest in these stocks which may give you quick profit with up down 20 or 30%, then you should only considered any of these stocks are owned by Good Big capital or my principle 2, owned by good and honest and capable person.

5. If the companies consistently doing well for many quarters and make remarkable and impressive profit, even though the share price is up, it is still cheap.
If the companies consistently doing badly and suffer loss, even the share price is go down a lot, it is still expensive. Thus, do not hesitate to invest in the companies which consistently doing well, even it is high price, but is it still worth it. Unless you are very sure what happen, do not buy any limit down stocks.

6. Do not invest in High Debt or High Gearing Stocks
Check the balance sheet, the debt of the company should not be more moderate for none establish business or any local companies. However, exception is given to the establish companies like BAT or Nestle, or any foreign owned company as their objectives of the high debt is mainly improve the Return On Equity. For local companies, you must be careful and selective. Be cautious of any off balance debt statements.

7. Do not invest in outdated business.
What do I mean by outdated business ? For example, nowadays people start using digital camera, because of thechnology change, how is the conventional camera maker going to survive ? It includes also the fim manufacturer and related supporting business. Another example, when the electronic storage device 's price getting cheaper and cheaper, the outlook of the VCD/DVD manufacturer is getting dull. Be very cautious to invest in any technology companies, if another competitor have better technology, the company will lost their market share because of its outdated technology. Thus, try to avoiod this kind of companies unless you fully understand their business and their outlook. One of my favourite stocks in this sector is Uchitech. I leave it to you all to figure out why I have choose this company.

8. PE is less than ROE
Do not invest in stocks just based on the PE alone, low PE is good but sometimes it may mean that you are investing in business with low prospect. Grow business usually come with high PE. For my personal guideline, the PE can be moderate high, but must be equal or less than ROE. Thus, if ROE is high, I can accept the stocks with moderate high PE, of course, not to the extend of PE 100 or 1000. I will leave it to the investors to decide what is the moderate PE is.

9. Do not sell your stocks as long as it perform well and consistent exceed expectation significantly. Sell only when the price is rediculous high.You friend startup a chicken rice restaurant but he runs out of capital. Thus, he ask you to invest. You agree and invest 10000 ringgit. After 6 months, his chicken rice store business is fantastically doing well and he start paying you earning 500 this month. One month, he pay you 1000 earning, and two months later, he pay you 1500, do you want to sell this restaurant if someone willing want to buy your share of this restaurant for 15,000 ? You will immediately get profit 5000, together with your total earning 3000 he pay you, your profit is so impresive , 8000, or 80% of your initial investment. However, there are no sign that the business will do poorly, and everytime you visit the restaurant, the business is too good that it almost full house everydays. Even if the restaurant can maintain the earning 1500 monthy for another 9 months, you will get 13,500 more and your total profit for the year is will also be 16,500. The return of equity is impressive of 165% , mean you earn 165% from your invested capital yearly. More importantly, your monthly earning may continue to grow ........like wise for stocks, if your stocks are perform so well that it consistently deliver excellent result meet and exceed your expectation, hold it...........don't sell it.........unless someone is crazy want to buy your restaurant shares at rediculous price......if an idiot likes the restaurant so much that he want to buy your shares for 200,000 or 500,00 , yes, you can sell it to him immediately.

http://bursamalaysiastockstips.blogspot.com/
http://mybursa.blogspot.com/

Masterskill to set up facility in Indonesia

Written by Kamarul Azhar  
Thursday, 07 April 2011 11:28

PETALING JAYA: Masterskill Education Group Bhd, the operator of Masterskill University College of Health Sciences, intends to open a campus in Indonesia soon in a move to diversify geographically, sources said.

The education group will form a joint venture with Indonesia-based hospital owner PT Sejahteraraya Anugrahjaya (PTSA) for the venture, according to sources.

Under the plan, which is in its preliminary stages, the new campus would be able to enrol about 20,000 students for each semester, said sources.

Should the plan materialise, it would be a big boost to Masterskill in terms of student count and earnings. The group currently has about 18,400 students.

This comes hot on the heels of the group’s announcement on Tuesday that it had entered into a share subscription agreement to buy US$1 million (RM3.02 million) of new shares in Indonesia-based hospital owner PT Surya Cipta Inti Cemerlang, which will be listed on the Jakarta Stock Exchange on Monday. 

PT Surya Cipta Inti Cemerlang is the controlling shareholder of PTSA, which owns and operates the Mayapada Hospital in Tangerang, near Jakarta. The former announced an IPO in January to raise fresh capital for expansion.

In its announcement, Masterskill said the share acquisition would enable the group to establish clinical training collaboration with Mayapada Hospital to allow the former’s students to comply with their academic requirements.

“We view the tie-up as a pioneer move for Masterskill to attract the foreign students, especially from Indonesia. The foreign students would be able to seek a career placement, apart from practical training, in Mayapada hospital through this strategic investment,” said Alliance Research.

Analysts said a venture into highly populated Indonesia, whose economy was on the growth path, was a good move as the demand for healthcare and healthcare practitioners was expected to be much bigger than at home.

“Whether private or public hospitals, the demand for healthcare will increase in tandem with the country’s economic growth as the standard of living improves,” said an analyst.

Masterskill has seen some negative news flow recently. The stock was hammered by heavy foreign selling and the group was hit hard by concerns over Perbadanan Tabung Pendidikan Tinggi Nasional’s (PTPTN) RM46 billion deficit.

The deficit raised worries that PTPTN would be more careful in granting student loans going forward. Masterskill was seen as the key victim because 90% of its students are financed by PTPTN loans.

Management is currently appealing against PTPTN’s new ruling that caps loans at RM45,000 for new courses.

Analysts believe that the new loan ruling, if implemented, would cover more than 75% of a typical tertiary course. An analyst noted that the government was unlikely to stop funding the programme, which was an important initiative to help students finance their higher education.

Nonetheless, the stock price rose to RM2.32, up 18 sen or 8.4% yesterday. It has rebounded 40% in the past three weeks from the all-time low of RM1.67. Despite the recent rebound, Masterskill is trading at just half of its all-time high of RM4.30 and 40% below its IPO price of RM3.80.

For FY10 ended Dec 31, revenue expanded to RM315.7 million from RM273.4 million previously. Net profit rose to RM102.1 million from RM97.4 million the year before.


This article appeared in The Edge Financial Daily, April 7, 2011.

Rubber glove prices to bounce back

Rubber gloves
Maintain overweight: Taking our cue from higher latex prices, we raise our CY11/13 price assumptions by 5% to 7% for nitrile and 9% to 10% for rubber latex. This reduces our FY11/12 sector net profit by 8% to 9%. Despite the earnings cut and the disappointing results season, we continue to rate the sector an “overweight” as the headwinds have left the sector’s CY12 price-earnings ratio (PER) at 8.5 times or about 30% below the KLCI’s 12.7 times PER.

This is despite a three-year earnings per share (EPS) compound annual growth rate of 11%, which is supported by 8% to 15% annual demand growth. Kossan Rubber Industries Bhd replaces Hartalega Sdn Bhd as our top pick, given Hartalega’s margin compression and better upside for Kossan.

Potential re-rating catalysts for the sector include higher outsourcing and lower input costs.

Annualised net profit for the companies under coverage missed expectations, coming in at just 78% of our estimates and 82% of consensus. Results were weighed down by a 64% year-on-year (y-o-y) slump in Top Glove Corp Bhd’s 2QFY11 net profit due to higher input cost and weak demand.

Sector revenue for the quarter fell 2% quarter-on-quarter (q-o-q) because of higher sales of nitrile gloves which have lower selling prices. On a y-o-y basis, revenue rose 16% due to capacity expansion. But rising costs pulled the sector net profit down 24% q-o-q and 220% y-o-y.

After peaking at RM10.89 per kg on Feb 22, rubber latex price fell 21% in two weeks to RM8.56 per kg on the back of growth concerns. The fall was accentuated by disruptions to global supply chains after Japan’s earthquake. But the rubber price fall was short-lived as prices bounced back with a vengeance, rising 24% in just over a week to RM10.65 per kg as at April 4.

Nitrile latex producers raised prices around the same time (by about 10% in March) as midstream refiners battled with a Brent price of above US$100 per barrel. Even so, the volatility of rubber has renewed interest in glove stocks, which have been out of favour lately.

Glovemakers can mitigate the cost volatility by diversifying their product mix. While customers in regulated markets such as the US and EU are unlikely to change buying behaviour, emerging market end-users are more fickle. Glovemakers with a balanced product mix such as Kossan (40:60 nitrile:rubber mix) are best positioned to meet demand from growth markets in emerging Asia and Latin America.

We like Kossan and Hartalega. Kossan is the most balanced glovemaker, has consistently met expectations and offers more upside than Hartalega. Despite offering 21% EPS growth for FY12, the stock trades at only 6.5 times forward PER. While it is true that Hartalega will continue to benefit from the switch to synthetics, we expect its margin to contract in FY12 as refiners start raising prices. — CIMB Research, April 5


This article appeared in The Edge Financial Daily, April 6, 2011.

Is foreign selling in Masterskill finally over?

Written by Yantoultra Ngui Yichen  
Monday, 04 April 2011 11:54

Could selling by foreign shareholders in Masterskill Education Group Bhd — the biggest catalyst for its depressed share price — be finally coming to an end? According to analysts, that is a strong possibility, judging by the high volume traded in the last six weeks, and especially late last week, plus the fact that Masterskill’s share price has since rebounded strongly.

Since hitting an all-time low of RM1.67 on March 15, the stock has rallied 28.7% to hit RM2.15 last Friday.

Despite the recent rebound, the stock is trading at just half of its all-time high of RM4.30 and 43% below its IPO price of RM3.80.

It was the sixth most actively traded stock last Friday, gaining 23 sen or 12% to RM2.15 on heavy volume of 30.58 million shares.
If the foreign selling overhang is over, analysts expect Masterskill’s share price to better reflect its fundamentals.

After the debut in May last year, shares of the nursing and allied health sciences educator surged to a high of RM4.30 two months later compared with its IPO price of RM3.80, before it spiralled downwards.

Heavy foreign selling by two US-based portfolio funds — Smallcap World Fund Inc and Fidelity Management and Research LLC — was the key reason behind the collapse in its share price, even as the company delivered strong earnings that were within expectations.

Concerns on the ballooning deficit at Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN), the National Higher Education Fund Corp, as a result of a rising number of default payments were said to have accelerated the selling in Masterskill.

Over 90% of Masterskill’s students are financed by PTPTN loans.

The two portfolio funds ceased to be substantial shareholders of Masterskill in mid-February. This means that their respective stakes fell below the 5% threshold and they do not need to disclose further sales.

From the volume traded since then and assuming the two funds are the largest sellers of Masterskill shares at depressed prices, it would appear that the bulk or possibly all of their remaining shares may have already been disposed of.

When contacted, Masterskill officials declined to comment on its foreign shareholding.
Smallcap ceased to be a substantial shareholder after disposing of 230,200 shares or a 0.56% stake in the firm on Feb 16, paring its total shareholding to 20.48 million shares or a 4.99% stake.

On the other hand, Fidelity ceased to be a substantial shareholder after it sold 167,400 shares or a 0.41% stake on Feb 10, reducing its interest to 20.43 million shares or a 4.98% stake. Collectively, both funds had 40.91 million shares left in mid-February this year.

Between Feb 17 and April 1, the counter saw a total of 109.57 million shares changing hands, with 30.58 million shares traded last Friday alone, according to calculations by The Edge Financial Daily. This was nearly three times the total amount of shares held by the two funds.

Incidentally, between Feb 17 and March 15, when the stock hit an all-time low of RM1.67, a total of 43.76 million shares were transacted over 19 trading days, according to estimates by the daily.

This was slightly more than the shares held by the two US funds, suggesting that selling pressure might have climaxed then when the stock reached its nadir before rebounding. 
Given the sharp fall in the share price, analysts see value in Masterskill. Seven out of eight analysts have “buy” recommendations on the stock.

The consensus target price on the stock is RM4.60, according to Bloomberg data. This is more than double last Friday’s closing price of RM2.15.

Maintaining a “trading buy” recommendation on Masterskills, OSK Research, for instance, said the stock is currently trading at an alluring price-to-earnings ratio (PER) for FY11 while offering a dividend yield of more than 7%. It has forecast earnings per share of 28.7 sen for FY11, implying a forward PER of 7.5 times. Its target price for the stock is RM3.44 based on 12 times PER for FY11.

Masterskill declared a final single-tier dividend of 7.9 sen a share last Wednesday, translating into total single-tier dividends of 14.9 sen for FY10.
Based on last Friday’s closing price, the counter fetches a high net dividend yield of 6.9%.

Masterskill’s net profit for FY10 rose almost 5% to RM102.14 million from RM97.38 million a year ago on the back of a 15.49% increase in revenue to RM315.74 million from RM273.39 million.

With earnings per share of 24.9 sen, the stock is trading at a historical PER of just 8.6 times.

Its cash flow from operating activities increased to RM109.5 million in FY10 from RM101.1 million a year ago.

In addition, the net cash position had also improved to RM99.41 million as at Dec 31, 2010 from RM30.23 million a year ago, allowing the company to capitalise on expansion at an opportune time.

On the concern about PTPTN funding, OSK Research said it was optimistic that the impact should be insignificant as the new loan allocation, if implemented, would cover more than 75% of a typical tertiary course.

It is learnt that Masterskill’s management is currently pursuing its recent appeal against PTPTN’s new ruling capping loans of RM45,000 for new courses.

An analyst also said the government is unlikely to stop funding the programme, which is an important national initiative to help students finance their higher education. “The government is more likely to focus on the collection process through the Internal Revenue Board and other means, rather than stop funding”, he added.

Notwithstanding that, Masterskill continued to take a beating in the subsequent months as Fidelity and SmallCap World disposed of their shares in the company.

As OSK Research put it, the high foreign ownership could keep investors’ interest at bay as Asian inflation fears could trigger portfolio reallocation.

Nevertheless, things could be turning around as signs are pointing towards a potential end of selling by foreign funds.

YTL Power has got the power

Written by The Edge Financial Daily    Friday, 01 April 2011 12:08

YTL Power International Bhd
(March 31, RM2.30)
Initiate coverage at RM2.29 with buy call and target price RM2.70: We initiate coverage on YTL Power International (YTLP) with a “buy” call and RM2.70 target price.

We like its portfolio of steady concession businesses. While we are positive on Yes, YTL Communications’ new 4G mobile Internet service, we expect it to incur start-up losses.

That said, we postulate YTLP cash flows are strong enough to maintain net dividend per share (DPS) at 13.1 sen or a 5.7% net dividend yield. More M&A may beckon.

YTLP has interests in power generation in three countries (YTL Power Generation in Malaysia, Power Seraya in Singapore and 35%-owned Jawa Power in Indonesia), power transmission in Australia (33.5%-owned Electranet), water and sewerage services in the UK (Wessex Water), telecommunications in Malaysia (60%-owned YTL Communications) and a nascent oil shale joint venture in Jordan (30%-owned).

Its power generation assets are multi-fuels (oil, gas and coal) and it operates under different power purchasing agreement (PPA) models (take or pay, liberalised market, and capacity and energy payment), where the skill sets are rare in any independent power producer (IPP) company. Wessex Water is the best water and sewerage company in the UK. YTL Communications’ YES garnered 100,000 subscribers in just 105 days.

We estimate FY11 group core net profit to be 10% lower year-on-year on YTL Communications’ start-up losses. Ex-YTL Communications, we estimate 7% compound annual rowth rate over the next three years on steady earnings growth at Power Seraya and Wessex Water.

We believe the 50% lower quarter-on-quarter net DPS in 2QFY11 was due to RM1 billion in debt repaid. Based on our cash flow projections, YTLP can maintain FY10 net DPS of 13.1 sen in current FY11 and the next few years.

We initiate coverage with a “buy” call and RM2.70 target price (TP). Our sum-of-parts (SOP) TP is largely discounted cash flow-based. Re-rating catalysts are:

(i) resumption of quarterly 3.75 sen net DPS;
(ii) lower than expected losses at YTL Communications; and
(iii) M&A — recall that YTLP was one of two last bidders for

the 300MW to 450MW Bibiyana gas IPP in Bangladesh in October 2010. YTLP is likely not done with M&A just yet. — Maybank IB Research, March 31

能让5人同时视讯通话 杨忠礼电力5月推新手机

2011/04/02 5:47:13 PM
南洋商报 报道：何开玄

（吉隆坡2日讯）杨忠礼电力（YTLpower，6742，主板基建股）最迟5月将引进，可供5人同时进行视讯通话的手机。

杨忠礼机构（YTLCorp，4677，主板建筑股）董事经理丹斯里杨肃斌向记者指出，这款由Android技术支援的手机，是YES 4G流动的强打产品之一。

目前苹果iPhone 4的视讯通话FaceTime功能，也只能进行一对一的视像通话，杨肃斌指市面上除了YES 4G流动网络之外，大部分网络都无法支撑着这项功能。

“我们将推出的Android手机，将是第一部具5人同时进行视像通话功能的手机。”

杨肃斌接受《南洋商报》专访时提到这款手机眉飞色舞：“更重要的是，YES 4G流动网络是唯一有能力，支撑着这项多方视像通话功能的电讯网络，且能确保通畅使用。”

他表示，当这项具备着多人视像通话功能的Android手机推出市场后，会为用户带来全新的视像网络视觉享受，也展现出YES 4G流动网络的高效和能力。

国内网络速度欠完善 FaceTime画面不通畅

杨肃斌表示，当我们可以同时通过流动电话和多人进行视像通话，且流动网络通畅，那是多么神奇的功能，届时将会令所有人感到震撼。

他说，鉴于网络速度不足和不完善，许多国外用户在使用FaceTime功能时都面临着画面不清楚和网路不通畅的问题。

iPhone 4不宣传

“因此，当iPhone 4手机在国内推介时，更干脆不宣传FaceTime功能，因为国内网络根本无法支撑着该功能。”

杨肃斌认为，要测试网络速度的最有效方式，就是确保可否使用FaceTime功能，这项同时具备通话和影像于一体的功能，所需网速和能量非常高。

他说，YES 4G流动网络服务就能做到这一点，解决其它网络无法解决的难题，让FaceTime功能可在非常顺畅和高解读的情况下使用。