SISB: Expect Further Upside in Thai Private Education

We keep our BUY recommendation on SISB based on an unchanged target price of Bt11.20, implying an upside of 24% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary 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
• Renovations and ongoing expansions help growing student capacity
• Maintaining high educational standards to remain competitive

Interim: Revenue was down 7% YoY, but grew 17% QoQ as operations began to normalize following the shutdown in 2Q20. With its ongoing expansion plans and recovery of tuition fees, we see a promising mid-term outlook.

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