SISB – From School to University
It is the first day for SISB to be traded in SET. With its potential, will it make the one-billion baht company soon?
Today, April 23, 2019, is the first day that SISB Public Company Limited (SISB) will be upgraded from Market for Alternative Investment (mai) to be traded in the Stock Exchange of Thailand (SET). Just like graduating from high school and about to move to a university.
SISB is now spotlighted by the funds, reflecting the becoming of a THB 10,000 million market capitalization company in the near future.
SISB entered the mai on November 29, 2018, with bruises and cuts as Mr. Juti Krairiksh and his allies from the Democrat Party, on the same day, filed a petition to the Administrative Court, claiming the Securities and Exchange Commission (SEC) had illegitimately approved SISB into the market while requesting for a temporary trade suspension of SISB’s shares from the market.
Panicking, investors poured SISB back to the market which led the share to close at ฿4.36/share, plunging 16% lower than its IPO price at ฿5.20/share. On that day, the majority of investors missed the chance to make any profit and mostly ended up with a loss.
To everyone’s surprise, the Court dismissed Juti’s petition as well as the request for a temporary trade suspension while the one creating this ruckus just simply disappeared as if nothing had happened.
Within two months, the wound had been healed while SISB’s shares were back in the spotlight again. The share price of SISB was also back on track at ฿5.20/share, creating a positive sentiment that hiked the share price nonstop. Although the share was restricted by cash balance on March 4 – April 12, 2019, SISB’s share price still continue its mountain hiking further to ฿7.80/share.
Looking at its fundamental, SISB has a solid growth of profit as the number of student increases yearly while having a growth rate of administration fee at an average of 5% along with lower financial cost that leads to a higher gross profit margin around 39-40% which results to higher net profit.
Which is why, without a doubt, SISB has been on funds’ radar.
The advancement to SET will give SISB an opportunity to have higher trading value as the current value averages less than THB 100 million. Meanwhile, the share price may proceed gradually as the price has risen by almost 60% in the past three months. For speculation, the share price could have a short-term jump.
One last highlight of entering SET is to achieve the milestone of being a ten-billion baht company, which is not too far to reach, considering the current market cap is at 7,000 million baht.
When that day comes, how will SISB turn out to be. Quite an interesting thing to see, isn’t it?