James Lim, Senior Research Analyst at Dalton Investments, recently wrote a letter to the board of directors and the management of MegaStudy Education, commending them for the recently announced 3-year shareholder capital return policy to return 60% of its net income through share buyback and cancellations. According to Lim, share buybacks and cancellations are more effective than dividends when the share price is low compared to its intrinsic value. Dalton believes that this announcement further demonstrates the company’s true intention to improve value for all shareholders. Read the letter here.
