This article first appeared in The Edge Financial Daily on February 9, 2018

KUALA LUMPUR: Educational counsellor JM Education Group Bhd — the third company listed on Bursa Malaysia’s LEAP market — has said it is looking to open more branches in Malaysia considering the strong demand for overseas and local studies among students here.

JM Education’s share price gained 17.78% or eight sen to close at 53 sen on its maiden trading day, valuing the company at a market capitalisation of RM35.93 million.

Speaking to reporters after the listing ceremony yesterday, managing director Teh Cheong Hua said the group had identified Johor for the opening of two other branches, besides signing up with more educational partners.

Teh said the group’s focus will still be on reputable British, Australian, and American institutions or organisations, as the group is unfamiliar with emerging markets such as India and Russia.

Incorporated in 1992, JM Education is principally engaged in the provision of educational counselling, student placement services to local and overseas institutions, and technical and vocational education and training (TVET).

In its financial year ended Dec 31, 2016, JM Education logged a net profit of RM2.26 million on revenue totalling RM9.96 million, with a profit after tax (PAT) margin of 22.7%.

The group currently has nine branches serving students from the whole of Malaysia by providing free educational counselling and student placement services. It then receives commission income from the 141 local and foreign educational institutions and organisations it partners with, based on a fixed rate or a percentage of the first-year tuition fees.

Commenting on its decision to list on the LEAP Market, Teh explained that given the opportunity, the group may look to advance to other boards on the local stock exchange, but stressed that it is not in a hurry.

“There is no rush to migrate; we need to focus on growing our business profitability first. LEAP is very beneficial to SMEs (small and medium enterprises); it is a good platform to raise SMEs’ profile, branding and capital. Seldom can you find in other countries where micro-capital companies can be listed at such an affordable fee,” Teh added.