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
12-Month Target Price: S$0.32 (implies 143.5% upside from last close S$0.13)

• Key Idea: Raffles Education has successfully completed a major capital restructuring, materially reducing debt (total borrowings fell 59% YoY to S\$84.99m) and strengthening liquidity (cash rose to S\$46.18m). Standalone bank borrowings are now zero.
• Operational Turnaround: Despite a 5% YoY revenue decline, PAT surged 274% YoY to S\$24.18m, driven by asset monetisation and lower finance costs.
• Expansion Plans: The group is pivoting from deleveraging to growth, targeting ASEAN premium K–12 education, especially in Malaysia, Thailand, and a new planned Jakarta campus, supported by low incremental capex and favourable market trends.
• Valuation: DCF methodology, WACC 6.3%, terminal growth 2.5%. Target price slightly reduced to S\$0.32 for a more balanced and conservative outlook, factoring in improved risk profile but gradual revenue growth.
• Risks: Execution risk in new campuses, margin pressure from competition, and regulatory/FX exposures in multiple markets.

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.sg/