1H results in mid-Aug.Oriental Century (ORIC) is expected to announce their

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operations have been stable. The positive factor pertaining to

education business is that revenue stream and costs are rather

stable and predictable once student enrollment is secured. We

understand that operations are very healthy.Point: We are not expecting any surprises in its 1H07 results as

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which we believe was possibly a spill over from some unrelated

market news/sentiments. We believe this presents a good

opportunity to accumulate the stock. Fundamentally, ORIC?s

business is still strong and management has indicated that there

was nothing contrary to this belief. Maintain BUY, TP: S$1.52 based

on 25x FY08F earnings with cash of S$0.18/share.Relevance: This counter dipped by about 6.5% yesterday,

1H07 results preview ? no surprises.

1H07 results announcement next month. We believe the Group should be

delivering some growth, probably in the mid-single digit as there should

be some expenses incurred in relation to the establishment of Humen

Kindergarten prior to enrollment. In any case, as we have highlighted in

our initiation note on 19 Apr, ORIC?s 2H results tends to be stronger than

1H as the academic year starts in September.We do not expect any surprises for its

Humen Kindergarten enrollment in progress.

management that enrollment for its new kindergarten in Humen,

Dongguan city, Guangdong Province, has begun and is progressing well.

The school semester is expected to start in September.We understand from

Revenue stream in secured and predictable.

education business is its predictable nature, i.e. there is continuity in its

revenue stream for the year once student enrollment is secured. We

understand from management that operations are progressing on track.One factor we like about the

Impact of unrelated market news present good entry opportunity.

Fundamentally, business is still strong and management has indicated that

there is nothing contrary to this belief. There was an article in a Chinese

financial magazine that the Chairman of Midas, Chen Weiping, had been

detained by authorities for alleged corruption charges which Midas

categorically denied. We believe this news caused some concern with

regards to Raffles Education whose share price also dropped by about 5%.

Chen Weiping was an ex-Executive Director of Raffles Ed whom had

resigned from Raffles Ed?s Board of Directors sometime in 2003/04. Raffles

Ed holds 21.4% of ORIC. We believed the market could have over-reacted

to this news, which is unrelated to ORIC. We think this episode, while

unfortunate and uncalled for, presents a good opportunity to accumulate.

Maintain BUY.