Broker: KGI Securities (Singapore) Pte. Ltd.
Date of Report: May 19, 2026
Excerpt from KGI Securities report.
Report Summary
Stock: Raffles Education Limited (RLS SP / NR7.SI)
Action: OUTPERFORM
Target Price (12-month, fully diluted): S\$0.32
Current Price: S\$0.13
Upside: 143.5%
- Key Idea: Raffles Education has completed a material capital restructuring, reducing total borrowings by 59% year-on-year to S\$84.99m as of 31 March 2026, with standalone bank borrowings at zero and cash/bank balances rising to S\$46.18m. This has significantly improved the company’s liquidity and reduced refinancing risk.
- Business Strategy: The company is shifting its focus from deleveraging to expanding premium K–12 education in ASEAN, especially in Malaysia and Thailand, and plans to open a new Jakarta K–12 campus in 2H2026.
- Financials: Despite a 5% year-on-year decline in 9M26 revenue to S\$81.14m, core profitability improved, with PAT up 274% year-on-year to S\$24.18m, mainly due to asset sales and lower finance costs.
- Valuation: Target price of S\$0.32 is based on DCF methodology (WACC 6.3%, terminal growth 2.5%), reflecting a more conservative revenue outlook but a stronger risk profile.
- Risks: Execution risk in new campus launches, margin pressure from competition, and regulatory/FX exposure across multiple jurisdictions.
above is an excerpt from a report by KGI Securities (Singapore) Pte. Ltd. Clients of KGI Securities can be the first to access the full report from the KGI Securities website: https://www.kgieworld.com.sg
