KUALA LUMPUR (May 16): Prestariang Bhd is expecting to perform better in the financial year ending Dec 31, 2018 (FY18), compared to last year, driven by all of its current projects in hand, along with the execution of its 5.0 transformation plan.
“We will focus on things that we can control, and the things we can control are our operations: topline, bottomline. As you know, there are a lot of uncertainty, but there's nothing much we can do,” its president and group chief executive officer Abu Hasan Ismail told the media after its annual general meeting here today.
Meanwhile, with the Sistem Kawalan Imigresen Nasional (SKIN) concession business becoming effective and having officially commenced on April 25, Abu Hasan said Prestariang’s focus now is to execute the contract and make sure Prestariang is aligned with its obligations toward the contract.
Note that SKIN contributed 36.7% of revenue for the first quarter ended March 31, 2018 (1QFY18).
Abu Hasan also does not see any risk for the SKIN project, with the change in government.
Prestariang is still in the midst of negotiating the terms and conditions for the Memorandum of Understanding (MoU) entered into with Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) on March 8.
“We are making a lot of good progress. It has been launched and it has started to bring in revenue for us,” Abu Hasan said.
However, he did not disclose any figures.
Note that this collaboration with PTPN is to develop a job-matching platform that matches student borrowers with jobs that suit their profile and subsequently provide them with pre-work training.
As for the MoU signed with Alibaba Cloud and Conversant to develop EduCloud, Abu Hasan said the work is still 50% in progress. “This work will be done together with our global partners such as Microsoft and Amazon. We are bringing in global partners to help us deliver this experience to the Malaysian consumer,” he added.
Prestariang and the two other parties are currently engaging to finalise the partner reseller agreement and business plan for the education market.
Its net profit doubled to RM6.51 million for 1QFY18, from RM3.22 million last year due to contribution from the group’s technology division, in particular the concession revenue recorded from the SKIN project.
Revenue swelled 66% to RM72.75 million from RM43.89 million a year ago. This brought earnings per share to 1.35 sen per share from 0.66 sen per share in 1QFY17.
At noon break, shares in Prestariang were up 16 sen or 14.41% to RM1.27, with 2.2 million shares done for a market capitalisation of RM612.52 million.
Also, the stock tumbled from RM1.65 to a low of RM1.11 after the general election, wiping out RM255.6 million of market capitalisation in just two trading days.