SISB: Resilient Business & Robust Growth Make a Defensive Play

We initiate coverage on SISB with a BUY recommendation based on a target price of Bt11.20, implying an upside of 15% from the current price. We derive our target price from a 30% premium to the PB/ROE of Thai Consumer Discretionary due to SISB’s resilient business and apply a 15% small-cap discount.

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

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