Analyst Picks SISB to Invest in amid Covid-19 Pandemic, Recomm. “BUY” with TP of ฿14

Analyst Picks SISB to Invest in amid Covid-19 Pandemic, Recomm. “BUY” with TP of ฿14

The third wave of Covid-19 has created massive uncertainty to Thailand’s economy, but the market continues and investors still seek advice on what to invest in during the pandemic.


Kaohoon Online has picked a stock for investors to invest amid the deep economic slow down. We recommend investing in “SISB”, a stock with a bright earnings outlook, as it could outperform the market over the next 2-3 years.    


SISB Public Company Limited (SISB) operates an international school who adopted Singapore curriculum as a basic curriculum in schools, with the school license under the Private School Act. Currently, there are 5 international schools within the group.


With the resilient and adaptive characteristic, SISB has immediately adjusted its teaching to the new normal by conducting the online class instead since the early outbreak of Covid-19.  


SISB projects its operating results to continue growing this year. The school expects to welcome additional 200 students in 2021. While the expansion of its school in Thonburi for another 600 capacity is scheduled to open by this August.


Regarding the Nonthaburi Campus, it is expected to begin construction in mid-2021 and will be ready for the new student in August 2022. The campus is located in the 14.8 rai plot of land in the north of Bangkok. 


SISB is also planning an M&A deal to acquire nursery schools for kids from 6 months to 3 years old. The deal is expected to complete in 3Q21.


This strategic move will give SISB an edge over its competitors as other international schools normally open from kindergarten to high school. Moreover, a wide range of educational stages will satisfy parents’ demand as well.


Tisco Securities (TS) saw the phare 2 expansion of Thonburi Campus as a key driver for SISB’s growth. While the plan to acquire daycare nursery will have advantages of expanding business over the next few years.


The second wave of Covid was likely to have no significant impact on SISB’s 1Q21 earnings as the school has raised the tuition fee by 5% in January. 


For the full-year outlook, earnings would stand at 275 million baht, increasing 71% YoY and total revenue would be 1,308 million baht (+22% YoY) driven by a higher number of students. Net profit in 2022 is expected to expand 37% YoY to 377 million baht as the Thonburi Campus will fully operate in August 2022.


Lastly, TS maintained a “BUY” Recommendation on SISB with a target price of ฿14.00/share.