KUALA LUMPUR (Dec 29): RHB Research Institute remains Neutral on the education sector with few re-rating catalysts on the horizon.
It said on Thursday that the sector, after recording a lacklustre performance in 2011, “we believe that earnings will be more stable in 2012”.
RHB Research said growth was expected to be organically-driven as the players’ focus on optimising the utilisation of their existing campuses.
However, the research house pointed out the sector lacked re-rating catalysts as news flow has been relatively muted in 2H2011, and as it believed the stocks in the sector had already priced in their medium to longer-term expansion plans.
“The sector’s heavy regulation remain a concern going forward as more regulatory changes could be introduced that could potentially hamper earnings growth,” it said.
It said on Thursday that the sector, after recording a lacklustre performance in 2011, “we believe that earnings will be more stable in 2012”.
RHB Research said growth was expected to be organically-driven as the players’ focus on optimising the utilisation of their existing campuses.
However, the research house pointed out the sector lacked re-rating catalysts as news flow has been relatively muted in 2H2011, and as it believed the stocks in the sector had already priced in their medium to longer-term expansion plans.
“The sector’s heavy regulation remain a concern going forward as more regulatory changes could be introduced that could potentially hamper earnings growth,” it said.
