Citigroup has maintained its “hold” call on Raffles Education Corp (RLSE.SI) but cut its target price to 54 cents from 60 cents on concerns of sharply declining organic revenue growth as well as challenges confronting subsidiary Oriental University City of China.

Raffles Education Corp reported weak 4Q results on Aug 24, posting a net profit of $9.1 million (–81% y-o-y) on the back of $44.8 million in revenue (–10% q-o-q, –28% y-o-y). Ex-investment gains, impairment and negative goodwill, recurring profit was $0.4 million.