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MindChamps PreSchool doubles 1HFY2025 earnings on higher revenue and lower cost
MindChamps PreSchool has reported earnings of $2.6 million for its 1HFY2025, nearly double that of $1.36 million recorded in the year-earlier period.
Revenue for the same half year ended June was up 10% to $32.2 million, due to higher franchise income.
It enjoyed a bigger gain in its bottomline because of lower expenses, mainly from staff costs.
It spent less on marketing too, although there was a currency translation loss from its operations in Australia.
Currently trading at 15.9c vs NAV 29.7c
Key Statistics
| EPS (SGD) a | 0.02125 | Trailing EPS (SGD) b | 0.02125 | NAV (SGD) c | 0.2969 |
|---|---|---|---|---|---|
| PE a | 7.482 | Trailing PE d | 7.481 | Price / NAV c | 0.5355 |
| Dividend Yield (%) e | - | Cash In Hand (SGD) f | 0.0238 | Issued & Paid-up Shares g | 242,870,963 |
| Piotroski F Score | 7 | Market Cap (M) | 38.616 | Free Float (%) | 98.0 |
| Return on Equity (ROE) (%) h | 7.158 | Revenue Growth (%) TTM i | 13.070 | ||
| Net Earnings Growth (%) j | 75.817 | Net Debt/Equity k | 0.448 | Net Debt (SGD ' 000) | 32,339 |
| Under CPF Investment Scheme (CPFIS) | No | ||||
| Sector & Industry | Consumer Services - Other Consumer Services | ||||
| Category Classification | Education | ||||
| Index Components | FTSE ST Fledgling Index | ||||
MindChamps posts net profit of $4.9 mil in FY2023, 65% higher y-o-y following global expansion
MindChamps PreSchool reported a net profit of $4.9 million for FY2023, 65% higher than the $2.9 million in 2022.
This follows higher revenue, which increased 13% to $69.6 million. This is attributable to an increase in franchise income in the US and Western Australia, an increase in school fees revenue as well as an increase in royalty revenue, among others.
Cost of sales improved by 4% y-o-y to $31.7 million. Gross profit grew by 33% y-o-y to $37.87 million.
As at Dec 31, 2023, cash and cash equivalents stood at $5.77 million.
MindChamps signed two Master Franchise Agreements in the US in March and September 2023 respectively.
In addition to its company owned centres in Australia, MindChamps currently has a total of 26 new franchisees and expanded its footprint from Sydney to its first Melbourne centre this year, as well as an upcoming flagship centre in Perth, slated for the second half of this year.
See also: The Place Holdings back in black with net profit of $2.96 mil for FY2023
The tailwinds such as growing demand for better education in the preschool sector has contributed to the growth in FY2023 and will continue its growth momentum into FY2024, the company says in its outlook.
&ldquo The group remains cautiously optimistic about the outlook for FY2024 in the face of high interest rates and inflation in operating costs, which the Group monitors closely and has implemented strategies such as school fees adjustment from FY2024 to cushion some of these challenges.
&ldquo The group will continue to ride on the good momentum established in the past year and take active steps to build and expand its business in the coming years to create a more sustainable growth,&rdquo it adds.
This Co half year P.E is 2.9.
Its cash flow is good - Operating activities $6 million, investment $4.3 millon
Repayment of loans -$13 million
If it continues to generate such profits and cash flows for 2nd half . will be attractive.
Its cash flow is good - Operating activities $6 million, investment $4.3 millon
Repayment of loans -$13 million
If it continues to generate such profits and cash flows for 2nd half . will be attractive.
MindChamps shares surge more than a third following 373% y-o-y improvement in 1HFY2023 earnings
MindChamps PreSchool shares surged more than 40% this morning, following the company' s significantly improved 1HFY2023 earnings.
For the six months ended June, the company reported earnings of $7.1 million, up 373% y-o-y versus just $1.5 million recorded in the year-earlier 1HFY2022.
Revenue in the same period was up 11% to $35.2 million, as it was able to book higher franchise fees, especially in US and Western Australia.
On the other hand, the company incurred lower costs, particularly in manpower following the sale of subsidiary business units.
MindChamps, under executive chairman David Chiem, is trying to shift towards an asset-light business model where it sells franchises for its pre-school education brand, instead of trying to own its own centres.
As at June 30, the company has a net asset value per share of 31 cents, up slightly from 30 cents as at Dec 31 2022.
For the FY2023 and FY2024 ahead, MindChamps says it is seeing a " healthy recovery" and that it is capitalizing on the reopening of economies and return of working parents back to the workplace.
However, it remains mindful of the uncertain macroeconomic environment with higher rates and inflation driving up operating costs.
To address these trends, MindChamps has increased school fees starting from FY2023 to cushion the impact of rising operating costs.
" Suitable subsidiary corporations have also been identified for divestment to our franchisees to lower borrowings and reduce interest expense," the company says.
It will continue to execute its strategy of transiting its business model from company-owned centres and focussing on accelerating its franchise sales in key markets such as Singapore and Australia, as well as most recently, the US market.
After 6 long years, MC is still around? So not only they didn' t go bust, but they are still profitable yearly. Interesting.
wcp2017 ( Date: 26-Nov-2017 20:17) Posted:
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MindChamps PreSchool
On Apr 6, MindChamps : CNE -1.23% PreSchool non-independent non-executive director Catherine Du acquired 70,000 shares at S$0.15 per share. With a consideration of S$10,500 this increased her total interest in the company from 52.13 per cent to 52.16 per cent. As the co-founder and director of the MindChamps group, Du been instrumental in the company&rsquo s growth and expansion globally, with a keen focus on addressing the global gap in early childhood education
Is this still in the pipeline?
goodman ( Date: 26-Nov-2017 20:53) Posted:
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MindChamps PreSchool to open 40th pre-school in Singapore by year-end
MAINBOARD-LISTED education provider MindChamps PreSchool expects to open its 40th pre-school in Singapore by year-end, the company announced on Monday.
MindChamps, which also offers infant care and enrichment services, already had nine company-owned and company-operated centres and 41 franchised centres in Singapore as at mid-2020.
The latest pre-school is a franchisee operation, a MindChamps spokesperson told The Business Times.
It did not say in its bourse filing whether the latest pre-school is a franchisee or not.
The 13,000 square foot facility will be located next to the Hard Rock Hotel at Resorts World Sentosa. As part of an opening promotion, complimentary resort membership, with free parking at Resorts World Sentosa, as well as a Sentosa Islander Pass will be included in new enrolments.
This IPO is so hot, yet its shareholder SPH is still in slumber despite 9ct dividends coming XD on 6 Dec.
Slow champion. I think most of small investors dumped their shares on the mediocre opening price.
Price action suggests $1 would be breached either today or tomorrow
DYODD
DYODD
Having say that, if MC does well in china. I won?t be surprise that MC will dual listing in HK by 2020-2021.
It really depends on the founder and the management. Base on my understanding, the founder is very aggressive in his education instead of business. It?s only after SPH coming onboard and business strategy starts to change. More business focus. Which I believe they will spearhead MC business up to a higher level and I am not surprise that, perhaps, Temasek will also get involved in this business. Just a guess on this matter.
MC did mention that they are going into china which I think it will be successful if it is a direct owned biz instead of franchise market. JV is also a good initiative. Then the next country while China will be Indonesia.
I view this biz a very potential company to be at least the biggest pre-school education Centre in the Asia. No need to go International. Asia already cannot finish eating loh.
MC did mention that they are going into china which I think it will be successful if it is a direct owned biz instead of franchise market. JV is also a good initiative. Then the next country while China will be Indonesia.
I view this biz a very potential company to be at least the biggest pre-school education Centre in the Asia. No need to go International. Asia already cannot finish eating loh.
I didmt study this stock as avoid educational stocks.
Scared to buy after seeing Informatics , raffles edu.
Anyone heard of US based Gymboree ? They used to have 1 outlet at Tanglin Mall there. Think owned by Boat Quay pub penny black owner.
Put it this way, what do you see Mindchamps in 5 years time ? All over ths world like gymboree (they actually go bust) or just focus on Singapore market ?
But this is in a bright industry when parents are more willing to spend on their child. So have higher pe
angmohlin ( Date: 26-Nov-2017 14:52) Posted:
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The IPO is overpriced if you look at P/L, net profit is declining and PE is so high. Should take profit.
Does China RYB Education hold any stake with them ? LOL
i got 500 shares only...:(
Most Ipo drop after 3-6 mth, u can buy back
SimpleTrade ( Date: 24-Nov-2017 19:38) Posted:
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