“Bloomberg” Expects SISB to Continuously Hit a Record High with 36% Upside on Bt11.70 TP


SISB Public Company Limited (SISB) reported a net profit of 68 million baht for its 4Q20 earnings, representing an increase of 3.2% YoY and 137% QoQ. Nevertheless, the company reported a decline of net profit in 2020 by 30% from 220 million baht in 2019 to 153 million baht in 2020 due to the impact of the coronavirus outbreak in 2Q-3Q20.

 

Mr. Yew Hock Koh, Chief Executive Officer of SISB, stated that the business started to recover in 4Q20, making a quarterly high with a net profit of 68 million baht even though the company has yet to raise tuition fees in August 2020.

The CEO asserted further that the reopening of school from February 1, 2021, will support the company’s revenue and net profit in 2021, while targeting an increase of new students around 150-200 from the existing 2,638 students as of the end of December 2020.

“The company is confident that the coronavirus outbreak has begun to ease and the Thai economy is starting to return to its normal level, which would result in more parents taking their kids to SISB,” said Mr. Yew Hock Koh.

“As for the progress of Singapore International Thonburi Phase 2, the company is expecting a completion and new student registration within August 2021,” stated the CEO. “Phase 2 will add 600 capacity to the Thonburi campus, and will increase SISB’s overall capacity to more than 4,500 students.”

“The Nonthaburi campus on a 14.8 rais of land, which is currently under planning and designing, is expecting to begin the construction in the middle of 2021,” added Mr. Yew Hock Koh.

 

In addition, the Board of Directors of SISB resolved to approve a dividend payment of 0.076/share to be paid on April 30, 2021. The ex-dividend date is March 10, 2021.

 

Bloomberg Consensus estimated SISB’s earnings in 2021-22 at 243 million baht and 354 million baht, respectively, while dividend per share would rise to Bt0.12 and Bt0.16, respectively.

The consensus also indicated a 12-month target price at ฿11.70/share, showing a 36% upside, with a 4 out of 4 “BUY” recommendation with no “Sell” or “Hold”.

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