SISB Hikes 5%, Expecting Profit Growth in 2Q19 from Number of Students and Education Fees

In the morning session, the share price of SISB Public Company Limit (SISB) closed at THB7.95, increased THB0.04 or 5.30%. During the session, the highest of SISB’s share price was at THB8 and the lowest was THB7.60 with a trading value of THB141,051 million.

Finansia Syrus Securities recommends “BUY” at a target price of THB8.84/share. SISB had reported an impressive financial statement of 1Q/2019 and it will be a new base profit of the company due to the debt structuring and the change of investment cost after selling IPO (Debt-Free).

Meanwhile, a net profit of 2Q/2019 is approximately THB44 million, increased by 5% from the previous quarter (due to there is not a one-time payment from an audit adjustment as in the 1Q2019) and increased by 111% YoY. As a result of the increasing number of students and education fee, and saving the interest payment. The analyst estimates an increase in the number of student 45 people, the average education fee, and gross margin will continue stable from the previous quarter. Additionally, the profit is estimated to grow by leaps and bounds again in the 3Q2019 due to the new school semester and increasing of education fee. Therefore, Finansia Syrus estimates and recommends “BUY” at an appropriate target price of THB8.84/share.