Tuesday, 14 February 2012

OSK keeps 'buy' call on Prestariang

Prestariang Bhd's (Prestariang) profit after tax for the fourth quarter of the financial year ended Dec 31, 2011 is expected to be within OSK Research Sdn Bhd's estimate of between RM10-RM11 million.

OSK Research in a research note here today said the results are likely to be driven by its information and communications technology training and certification division which usually experiences a peak in the second half of the year.

It said moving into 2012, the Prestariang management is aiming for an internal profit after tax of RM40 million for the new year and the research firm believes the target is achievable.

"We believe that the target, which implies a 19 per cent growth year-on-year is achievable, leveraging on the broader implementation of its in-house developed solutions, which typically yield better margins," it added.

OSK Research said the company is also working towards smoothening out its future earnings by focusing more on non-time sensitive contracts during the off-peak quarters to mitigate the seasonality impact.

The research house expects a more normalised and predictable earnings cycle going forward.

Meanwhile, it has maintained a "buy" call with a higher fair value of RM1.38 on the company as it feels increasingly upbeat on the prospects, riding on the growing adoption of its self-developed solutions. -- Bernama

Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.
Related Posts Plugin for WordPress, Blogger...