SISB: Capacity Expansion Captures Rising Demand for Private Education

We keep our BUY recommendation on SISB based on a maintained target price of Bt11.20, implying an upside of 18% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary sector due to its resilient business, and we maintain our 2021E target PB of 5.2x.

Investment thesis:

• Growing wealthy class increases demand for private international education
• Ongoing expansions help growing student capacity
• Maintaining high educational standards to remain competitive

Interim: Revenue was up 6% YoY as tuition fees normalized. The Thonburi expansion is expected to complete on time in August 2021. Plus, the recent announcement of building a new campus in Nonthaburi drives our positive outlook.

Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.