JM Education sees potential in TVET segment

The firm is open to working with foreign TVET providers from countries like China and Australia


JM EDUCATION Group Bhd, listed on the Leading Entrepreneur Accelerator Platform (LEAP) Market yesterday, is exploring ways to grow its technical and vocational education and training (TVET) segment.

JM Education made a strong debut on the exchange yesterday, closing at 53 sen, or 17.7%, or eight sen above its reference price of 45 sen a share.

The company currently provides educational counselling and student placement services, as well as training on TVET.

“We are exploring opportunities in TVET whether to provide full-time training, and upskilling as well as reskilling programmes for full-time or part-time workers,” MD Teh Cheong Hua said in a press conference after the company’s listing on Bursa Malaysia in Kuala Lumpur yesterday.

Teh said JM Education is open to working with foreign TVET providers from countries like China and Australia that are interested to penetrate into the Malaysian market.

Teh said there is no concrete timeline and plan yet being committed to the TVET segment as the company is in no rush.

For the seven months ended July 31, 2017, the company registered a net profit of RM808,000, up 50.5% for the same period in 2016.

For its financial year ended Dec 31, 2016, the group generated RM9.96 million in revenue, of which 80% were contributed by its educational counselling segment and the rest by its TVET segment.

JM Education first ventured into the TVET segment after acquiring Miraj Academy in 2013.

Miraj Academy provides trainees with knowledge, skills, and know-how, and produces job-ready graduates to fulfil the demands for skilled workers in administration and management, electrical, and food and beverage industries.

JM Education is the third company to be listed on the LEAP Market so far and is the first one in 2018. It issued 6.8 million shares, representing 10% of the company’s enlarged issued share capital of 67.8 million shares, at 45 sen a share, giving it a market capitalisation of RM30.5 million.

The new shares were priced at price-earnings multiple of 13.49 times the company’s earnings per share of 3.34 sen for its 2016 financial year.

Teh said the company has the intention to pay out at least 20% of its earnings as dividends.

The company raises RM3.06 million from its listing exercise, of which 24.2% or RM740,000 will be utilised for marketing expenses and expansion.

Two new branches are expected to be opened within the next 24 months as part of its expansion plan.

Its headquarters is in Subang Jaya, Selangor, with several branches across the country including in Ipoh, Penang and Kuching.