SISB Affirms a Robust Growth in 3Q20, Analyst Recomm. “BUY” at TP of ฿11.20

SISB expected its 3Q20 revenue to recover and be better than the previous quarter. The earnings would be announced on November 13, 2020, while its 4Q20 revenue and profit would return to its normal level. Moreover, the company is expected to open a new campus soon. Analyst recommended “BUY” with a target price of ฿11.20/share.

 

Mr.Yew Hock Koh, Chief Executive Officer of SISB Public Company Limited (SISB), stated that having a tendency on the recovery of normal profit and income to the 1Q20 levels in 4Q20 as the discount policy to reduce tuition fees has already applied since last quarter and the number of students continue to increase especially during the period of November – December 2020 when Thai students move to international schools. 

 

For the FY2020 performance, SISB was expected to have a decrease in both total revenue and profit compared to the FY2019, being in line with negative factors caused by Covid-19 pandemic, but  will be better than the FY2018. SISB so far recorded net profit of 63.12 million baht for the first six months of 2020.

 

In addition, Mr.Yew Hock Koh has affirmed the operating performance of SISB will return to its normal levels, the FY2019 levels, in 2021, as a result of the teaching and learning have already conducted as normal, along with the increment of student admission numbers of approx. 600 students following the construction of a new Secondary Building at its Singapore International School Thonburi campus. Currently, the utilization rate of SISB is more than 82%. It is expected the building would be completed by the end of 2021 and would be able to welcome approx. 1,500 – 1,600 new students, driving SISB’s total number of students up to 4,500. 

 

Finansia Syrus assessed SISB to report a 3Q20 net profit of 34 million baht, an increase of 668% from a previous quarter, due to no extra cost or additional expense from the liquidation of Ekkamai campus and the allowance for impairment in debenture.

 

Overall, SISB performance to return to pre-pandemic levels in 4Q20 at 50 – 60 million baht, estimating the net profit of FY2020 of 150 million, decreasing 32% from a year ago, while expecting FY2021’s core profit at 262 million baht, an increase of 75% compared to FY2020. Finansia Syrus reiterated its “BUY” recommendation on SISB at a target price of ฿11.20/share