Overseas Education

Overseas Education: FY13 results in line. Net profit rose 9.5% y/y on higher tuition fees (+8% y/y) and well-managed costs (+5%) which grew less than top line (+7%). The school's fees are still 17-30% below peers. The group has proposed a final dividend of 2.75¢ which translates to 50.5% payout. Going forward, OEL's new campus will be ready for the Aug '15 school year. Dev costs are not expected to exceed the $233.5m budget. The group will be conducting a fundraising exercise in 1H14 through debt, equity or a mix of both. UOBK projects FY14e net profit to increase 9% y/y driven by higher tuition fees. Maintains Buy with TP $0.98