Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Bottom-Up

SISB Public Company Limited / Equity Bottom-Up

SISB has been one of the best investments in our portfolio, rising 26% since we jumped in shortly after the IPO. Founder Kelvin Koh reiterated the strengths in his prospectus (English-Chinese language, affordability, own brand) and backs it up with:<ul>
<li>
positive stats and trends. 7.8% CAGR in international students, growth in high net worth Thais (11.4% CAGR) and expat population (6.9% CAGR) all of which are supportive of the business.</li>
<li>
expansion plans both abroad and domestic. A Bt70m investment in the Thonburi site as well as talks to potentially set up new campuses in China and/or CLMV region.</li>
<li>
Financials. An almost sixfold jump in earnings from Bt18m in 2017 to Bt103.5m in 2018 primarily due to its high operating leverage and now debt-free status after the IPO.</li>
<li>
favorable operating environment. High availability of Caucasian teachers in Thailand and growing Chinese expat community due to China's increasing environment.</li>
</ul>

SISB has been one of the best investments in our portfolio, rising 26% since we jumped in shortly after the IPO. Founder Kelvin Koh reiterated the strengths in his prospectus (English-Chinese language, affordability, own brand) and backs it up with:

positive stats and trends. 7.8% CAGR in international students, growth in high net worth Thais (11.4% CAGR) and expat population (6.9% CAGR) all of which are supportive of the business.

expansion plans both abroad and domestic. A Bt70m investment in the Thonburi site as well as talks to potentially set up new campuses in China and/or CLMV region.

Financials. An almost sixfold jump in earnings from Bt18m in 2017 to Bt103.5m in 2018 primarily due to its high operating leverage and now debt-free status after the IPO.

favorable operating environment. High availability of Caucasian teachers in Thailand and growing Chinese expat community due to China's increasing environment.


Equity Capital Markets

SISB Public Company Limited / Equity Capital Markets

There are probably around 10 international schools in Bangkok catering to expatriates and very select Thai upper class. Though the majority are local brands and a few British (Shrewsberry, Harrow) and American (Stamford) ones, only Singapore's <a href="https://www.smartkarma.com/entities/27425" target="_blank" data-smartkarma-citation="entities:27425:1">Singapore International School of Bangkok (SISB TB)</a> has agreed to list. A few things to note about the stock:<ul>
<li>
Valuations: We value the stock at Bt12.4/sh using DCF. The alternate valuation using PE is Bt9.4/sh. We are pretty confident this IPO will be well oversubscribed given its uniqueness and business model.</li>
<li>
Business Model. SISB may not be as good as top international schools, since only 10% of the student body is foreign. The Thai students come from wealthy but not super rich families. Their strongest suit is in kindergarten.</li>
<li>
Leverage is considered high (2x gearing) but manageable given very stable cash flows and inelastic demand for premium education.</li>
<li>
Demographics. High concentration of wealth, increasing need for English and international norms as the export- and tourism-oriented industries take a bigger share of the economy, and more foreigners enter Thailand to support that growth due to lack of local labor.</li>
</ul>

 There are probably around 10 international schools in Bangkok catering to expatriates and very select Thai upper class. Though the majority are local brands and a few British (Shrewsberry, Harrow) and American (Stamford) ones, only Singapore's Singapore International School of Bangkok (SISB TB) has agreed to list. A few things to note about the stock:

Valuations: We value the stock at Bt12.4/sh using DCF. The alternate valuation using PE is Bt9.4/sh. We are pretty confident this IPO will be well oversubscribed given its uniqueness and business model.

Business Model. SISB may not be as good as top international schools, since only 10% of the student body is foreign. The Thai students come from wealthy but not super rich families. Their strongest suit is in kindergarten.

Leverage is considered high (2x gearing) but manageable given very stable cash flows and inelastic demand for premium education.

Demographics. High concentration of wealth, increasing need for English and international norms as the export- and tourism-oriented industries take a bigger share of the economy, and more foreigners enter Thailand to support that growth due to lack of local labor.


IPO Radar: SISB...International Schools = License to Print Money

Thailand

SISB operates a premium K-12 international school in Thailand, adopted Singapore, UK and IBDP curriculum as a blended student pathway in schools. SISB was established in 2001 with the school license under the Private School Act. Currently, there are 6 international schools with over 4,000 students.

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SISB Public Company Limited (SISB TB)

IPO Stalker: SISB's Growth Plans

SISB has been one of the best investments in our portfolio, rising 26% since we jumped in shortly after the IPO. Founder Kelvin Koh reiterated the...

Athaporn Arayasantiparb, CFA

IPO Radar: SISB...International Schools = License to Print Money

There are probably around 10 international schools in Bangkok catering to expatriates and very select Thai upper class. Though the majority are...

Athaporn Arayasantiparb, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)