SINGAPORE (Nov 12): Maybank Kim Eng is maintaining its “hold” recommendation for Overseas Education Ltd with a 11% lower target price of 65 cents as 3Q results came below expectations and new student enrolment remains weak.

3Q net profit plunged 67% to $1.7 million due to the drop in revenue, combined with higher depreciation and interest expenses. Registration fees fell to $0.2 million as new student enrolments were only 120.

In a Thursday report, analyst Truong Thanh Hang says despite a 10% increase in tuition fees, revenue declined 6% from a year ago because of a sharp drop in the number of student enrolments.

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