Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

I am a fundamental-value investment analyst with a bent for events and soft catalysts.

During my time on both the buy-side and sell-side I focussed on small and mid-cap companies in ASEAN, Australia and HK/China.

Although a generalist, my background as an engineer lends itself toward deep-dive research in more practical sectors like consumer and industrials.

Previous recommendations include:

Concepcion Industrial		(CIC PM)	BUY	03/12/2015		+100.1%
OSIM International		(OSIM SP)	BUY	11/12/2015		+36.9%
Bellamy's Australia Ltd	(BAL AU)	SELL	08/06/2016		+60%
Pryce Corp				(PPC PM)	BUY	14/07/2016		+105%
Rukun Raharja			(RAJA IJ)	BUY	16/02/2017		+61%
Asian Pay Television Trust (APTT SP)	BUY	30/12/2016		+67%

Pan-Asia Equity Bottom-up

Rationalised Cost Base Points to Better Earnings in FY18

Strong Enrolments Positive for FY18/19, 8% Yield Sustainable.

Research-Intensive Fundamental Value Advisor

Wickhams Hill

Wickhams Hill Capital is a research-intensive fundamental value advisor, on long and occasionally short investment opportunities concentrated in small and mid-cap public companies.

Equity Bottom-Up

<h2>Key Takeaways</h2><ul>
<li>The weak expat labour market and increasing competition between schools drove enrolment lower 4-4.5% QoQ and a 5.4% decline in revenue QoQ;</li>
<li>Negative operating leverage to impact earnings despite rationalization of teaching staff. We forecast that FY17 net income of S$6.4m will fall short of consensus estimates of $8.0m; and,</li>
<li>Strong balance-sheet is backed by positive FCF which underpins dividend and 7.4% yield, though is yet to reach trough in earnings.</li>
</ul><h2><strong>Background</strong></h2><p><a href="https://www.smartkarma.com/entities/20960" target="_blank" data-smartkarma-citation="entities:20960:1">Overseas Education Ltd</a>…</p>

Key Takeaways
The weak expat labour market and increasing competition between schools drove enrolment lower 4-4.5% QoQ and a 5.4% decline in revenue QoQ;
Negative operating leverage to impact earnings despite rationalization of teaching staff. We forecast that FY17 net income of S$6.4m will fall short of consensus estimates of $8.0m; and,
Strong balance-sheet is backed by positive FCF which underpins dividend and 7.4% yield, though is yet to reach trough in earnings.
BackgroundOverseas Education Ltd…

Overseas Education Ltd (OEL SP) - More Pain to Come as Weak Enrolment Points to 3Q Miss