Overseas Education
$Overseas Edu (RQ1.SG)$ The Company moved to bigger campus by spending money on the buildings and leasing the land from the Government in 2015 by spending SGD150mil.
The student capacity should be 5,000 and due to Covid19, the intake of students have not been encouraging and only touch half of that capacity in 2023.
The Board cited intense competition from the private international schools due to low intake while they are still able to raise the school fees by 6% to 10% last year. The Board is committed to a dividend payout and at current share price of 20 sen, the Company offers a 6+% dividend yield. Not forgetting also the market cap is only SGD83 mil vs the underlying campus value of SGD170mil which appreciated in terms of value over the past 7 years.
What will be the catalyst for the stock price to move? More expatriates come to Singapore and have their children sent to the private school. The quality and reputation still remains the biggest pull for parents to make their choice for their children which the Board and Management is good at.
All in, it is expected that $Overseas Edu (RQ1.SG)$ will remain in the race and will continue to do well as long as Singapore remains as the magnet to foreign talents.
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Started share investing since 18 years old, still honing the skills for greater good in days to come.
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