KUALA LUMPUR: SASBADI Holdings Bhd may be at risk of losing textbook tenders from the Education Ministry but its online business is set to benefit from the migration towards the online platform in education, says HLIB Research.
HLIB Research said although Sasbadi reported overwhelming results for the first quarter of fiscal year 2015, the revenue of RM16.3 million was below estimates.
The research house is revising the fiscal years 2015 and 2016 earnings downwards by between six per cent and 6.4 per cent to reflect lower revenue contribution from its educational publishing business.
It said Sasbadi faces risk in its business outlook also because of the migration towards the online platform in education, the spike in paper prices, and changes in the National curriculum and educational policies.
HLIB Research, however, said, it was optimistic about Sasbadi's online venture which recorded RM200,000 in revenue, and was a sustainable earning stream for the company.
"Changes in the educational policy on e -learning could prove to be a catalyst for the online division," it said in its research note, yesterday.
Sasbadi publishes materials that includes textbooks, revision guides, workbooks, assessment books, model test papers and past year examination papers, for primary and secondary schools, based mostly on the Malaysian National School Curriculum.
HLIB Research is issuing a ‘hold’ call on Sasbadi, pending an update from the management about their business.