SISB: Good Entry Point for Investment in Private Schools

We have a BUY recommendation on SISB based on a target price to Bt11.20, implying an upside of 33% 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 apply a 15% small-cap discount. This implies a target PB of 5.0x.

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: In response to the temporary closure of its schools, SISB granted lower tuition fees for the current academic year, reducing net profit in the short run. 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.