An interesting growth stock listed on the SET index and is the one and only stock coming from an educational background, is of course, SISB or Singapore International School of Bangkok. The school had performed exceptionally well in the capital market as the world recovers from the covid-19 pandemic. It’s fair to say, parents have a high level of trust in the school’s curriculum in which their children will receive and be groomed during their years growing up not to mention its affordable price and location-wise.
As the end of 2023 approaches, DAOL Securities (Thailand) had raised its target price for SISB shares as the company shows evidence of continued growth.
The price adjustment came as the number of students applied to SISB for the August 2023 term exceeded the previously anticipated amount. Also, tuition at the school increased by 5% for the same period, in line with the business plan. The total number of students in all six SISB schools had increased to 4,070 from 3,394 at the end of the second half of 2023, thanks to the recent opening of two new branches in Nonthaburi and Rayong. Just for the two most recent branches, the total number of students exceeded the expected 300 to 355 students.
DAOL Securities (Thailand) predicts SISB’s bottom line will remain positive in 2023. The two aforementioned factors are the main contributors to the year’s second half and overall upside. This year’s net profit is expected at THB 673 million, an increase of +84% year over year.
The target price for SISB is THB 40 per share. The overarching theme for this new target is the rising number of upper middle-class parents who desire to provide quality education for their children is one of the primary drivers of the increase. It is also how SISB provides Mandarin language class, which corresponds to Chinese parents’ desire for an alternative school that teaches Chinese language to their children.
