Cambodia Investment Review

Leader Talks: Dr. Mengly J. Quach on Increasing Annual Dividend to 7% Amid Strong Financial Performance and Strategic Expansion Plans

Leader Talks: Dr. Mengly J. Quach on Increasing Annual Dividend to 7% Amid Strong Financial Performance and Strategic Expansion Plans

Harrison White

In an exclusive interview with Cambodia Investment Review’s Leader Talks, Dr. Mengly J. Quach, Founder, Chairman, and CEO of Mengly J. Quach Education (MJQE), discusses the company’s impressive stock performance, strong ongoing business model, and ambitious expansion plans. Since its IPO last year, MJQE’s stock has risen significantly, driven by strong financial results and growing public support. As Cambodia’s first education company listed on the CSX, MJQE continues to set the standard for quality education while expanding its reach across the country.

The stock was successfully listed on June 28, 2023, raising an impressive $5,082,770 in its Initial Public Offering (IPO). The IPO garnered significant interest by attracting 2,310 investors. This remarkable achievement makes it the second-largest IPO in terms of investor participation in the history of Cambodia’s stock market.

Stock Performance and Market Reception

Since MJQE’s IPO last year, the company’s stock has exceeded initial expectations with exceptional performance. Investor interest has surged, as the number of shareholders has nearly doubled from 2,310 to over 4,000. MJQE’s shares consistently rank among the top three in daily trading volumes on the CSX. Additionally, the stock price has risen from KHR 2,080 to KHR 2,210, representing a notable increase of approximately 6-7%.

Read More: 1st Annual General Meeting Mengly J. Quach Education Plc on April 30, 2024 at AIS Toul Kork Campus

This impressive growth underscores MJQE’s strong market presence and investor confidence. Dr. Mengly J. Quach attributes this positive investor reception to several factors. “The global economic environment, political stability in Cambodia, favorable monetary policies, and our strong company earnings have all played significant roles,” he explained. He also highlighted the trust MJQE has earned from the public and parents as a crucial element in the company’s success.

Mengly J. Quach Education Officially Listed on CSX on June 28, 2023.

Dr. Quach pointed out that the company’s first Annual General Meeting, held on April 30, 2024, was a significant milestone, reinforcing shareholder confidence in MJQE’s future. “The AGM was a great opportunity to show our commitment to transparency and shareholder value,” he said. During the AGM, the company announced a 7% dividend for public shareholders. The dividend, sourced from the net profit of 2023, will be distributed annually with a payout ratio of 7.60%. “We’re committed to rewarding our shareholders for their trust and support,” Dr. Quach emphasized.

Analysis of Current Company Performance

Reflecting on the past year, MJQE has shown remarkable financial and operational success. The 2023 Annual Report highlights a significant 44% increase in revenue, a 45% rise in gross profit, and an impressive 102% surge in net profit. “Our listing on the Cambodia Securities Exchange has opened up substantial opportunities for public investors, including parents of our students,” Dr. Quach noted. He added that this move has not only raised funds to support the expansion of MJQE schools but also improved the company’s governance and service quality.

MJQE’s status as the first education company listed on CSX marks a significant milestone for the institution and the Cambodian education sector. “The IPO has generated considerable publicity for our schools, attracting more investors and creating a platform for further foreign direct investments,” Dr. Quach said. He also pointed out that the growing demand for quality education among Cambodia’s middle and upper-middle classes positions MJQE well to capitalize on this trend. The raised capital from the IPO is intended to accelerate the company’s expansion plans, allowing MJQE to open more schools in areas with high demand.

Dr. Mengly J. Quach, Founder, Chairman, and CEO of Mengly J. Quach Education (MJQE) and CIR Media Editor Harrison White.

Dr. Quach expressed confidence in the long-term benefits of IPO investments, noting that they offer the potential for substantial returns. “Investing in MJQE’s IPO not only provides immediate profit opportunities but also helps grow your wealth in the long-term,” he said. “As we continue to grow, we’re dedicated to delivering excellent service and maintaining strong governance to ensure the best outcomes for our students and parents.”

Future Strategic Directions for MJQE

Looking ahead, MJQE plans to pursue several major strategic initiatives to enhance its market position and positively impact Cambodia’s educational environment. Dr. Mengly J. Quach emphasized the institution’s commitment to maintaining high standards in quality, discipline, and services. “Our philosophy of ‘One Culture, One System, One Reputation’ ensures a consistent and unified approach across all campuses,” he said. This strategy is designed to meet the high demand for quality education by expanding the number of campuses each year.

Read More: Mengly J. Quach Education raises $5.08M in IPO on Cambodia’s Stock Exchange

To address this growing demand, MJQE has embarked on an ambitious expansion plan. By December 2023, the institution operated 20 campuses, with additional campuses currently under development. These include AIS Choam Chao, Aii and AIS Toul Sangkae, Aii and AIS Chamkar Doung, and Aii CCV. Improvements to existing facilities, such as the QLH Tower and LKN Tower renovations, are also underway. “We are committed to providing our students with top-notch educational facilities,” Dr. Quach emphasized.

MJQE’s expansion plans extend into the coming years, with several new construction projects scheduled. In 2025, expansion of new campuses in Kambol and Prek Phnov are in the planning stages. By 2026, the institution aims to expand to Kampong Cham, Sihanoukville, and Toul Kork. The expansion will continue into 2027, with new campuses prioritized in Prek Anchanh, Battambang, and Toul Pongro. “These strategic initiatives will not only strengthen our market position but also contribute to the advancement of Cambodia’s educational landscape, providing more students with access to high-quality education,” Dr. Quach concluded.

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