Wednesday, October 1, 2014

Sasbadi ... Market Leader In Domestic Educational Publishing Industry


It is a strong and growing market leader in the local educational publishing industry with 9% market share.

With the proceeds from its IPO, the group is in prime position to embark on earnings accretive M&As in the fragmented educational publishing industry. There is huge potential in the untapped education services market, in hands on learning centres that foster creative thinking and innovation, where Sasbadi could tap into.

Observers forecast its financial year of 2015 to 2017 core profit after tax to expand at three year CAGR of 22% underpinned by earnings accretive M&As. Valuation is at 11x/9x/7x FY2015 to FY2017 EPS.

A target price of rm2.25 implies 16 times FY2015 EPS…

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.