Cambodia Investment Review
Mengly J. Quach Education Plc. (MJQE) reported a net profit of KHR 5.05 billion (USD 1.23 million) for the first half of 2024, despite a 1.4% decrease in its stock price since its initial public offering (IPO). The stock is currently trading at KHR 2,050, below the IPO subscription price of KHR 2,080 (USD 0.51).
In the second quarter of 2024, MJQE achieved total revenue of KHR 44.37 billion (USD 10.79 million), marking a 10.78% increase compared to the same period last year. This growth was primarily driven by increased student enrollments at American Intercon School (AIS) and Aii Language Center (Aii), which together served over 22,000 students during the period.
Despite the increase in revenue, the company’s profit before tax declined slightly by 1.12% to KHR 5.05 billion (USD 1.23 million) due to rising administrative expenses and finance costs associated with its ongoing expansion efforts.
Strategic Focus on Expansion and Technology Integration
MJQE’s gross profit margin improved to 65%, up from 63% in Q2 2023, with gross profit rising by 14% to KHR 28.86 billion (USD 7.02 million). The company’s total equity also increased by 16%, reaching KHR 101.92 billion (USD 24.80 million) as of June 2024.
However, the company’s stock price has not fully reflected these operational successes, trading at KHR 2,050, which is a 1.4% decline from the IPO price of KHR 2,080. The company went public in June 2023, and the stock price has been under close observation by investors.
MJQE is focused on expanding its presence in Cambodia’s education sector. The company currently operates 20 school campuses and employs 2,559 teachers and staff. Future plans include opening new campuses, enhancing existing facilities, and introducing educational programs to meet the needs of Cambodian students.
Partnerships and Future Growth Initiatives
MJQE is also investing in technology to improve the educational experience. The company has extended its School Management System (SMS) to additional campuses and launched a mobile app to improve communication and engagement with parents and students.
Additionally, MJQE is exploring strategic partnerships to enhance its educational offerings. The company has partnered with De Montfort University Cambodia to provide higher education scholarships and collaborated with Prasethpheap Finance Plc. to offer education loans, making quality education more accessible to Cambodian families.
Despite the slight decline in net profit and stock price, MJQE remains focused on maintaining its position in Cambodia’s private education sector by continuing to deliver high-quality education and expanding its reach. MJQE’s financial performance in the first half of 2024 reflects its solid market position and establishes a foundation for continued growth and success in the coming years.
