Analysts positive on Prestariang’s extension of MOHE contract

KUALA LUMPUR: Prestariang Bhd’s (Prestariang) extension of contract with the Ministry of Higher Education (MOHE) for the distribution and management of Microsoft software licences to public higher education institutions in Malaysia has been viewed positively by analysts.

In a filing to Bursa Malaysia, Prestariang announced that it has successfully extended the Managing

University as an Enterprise (MUSE) programme for another one year. The contract has a total value of

RM10 million, and is valid from July 3, 2017 to July 2, 2018.

AmInvestment Bank Bhd’s research arm (AmInvestment Bank) said while it has retained its forecasts post-announcement, it said it remained positive on the group.

“However, we are positive on the announcement as the group continues to prove execution capabilities in its core businesses,” it opined.

For FY18, it projected a 25 per cent growth in Prestariang’s software management revenue, premised on its plans to replicate the success of Master Licensing Agreement 2.0 with other prominent software partners like Adobe and IBM.

“Apart from increasing product mix, Prestariang also intends to move up the value chain by offering more value-added services such as cloud computing and other analytics,” it pointed out.

Aside from that, it noted that although Prestariang’s core businesses (mainly software services and ICT training) continue to offer bright prospects, a higher upside potential is required to prompt a recommendation upgrade.