Overseas Education

Overseas Education: Unexciting 3Q13 results, with net profit up 9% to $5.6m and revenue grew 5% to $25.9m. The bottom line was boosted by a 10% drop in depreciation and amortisation expenses as a result of more fixed assets being fully depreciated in 1H13. NAV surged 34% to $0.34. Going forward, labour inflation may impact the group. In addition, capex for the construction of its new school campus in Pasir Ris would have an impact on the construction-in-progress and cashflow required to pay contracting parties. Latest broker ratings as follows: CIMB maintains Outperform and increased TP to $1.08 from $0.95