FSS Picks SISB, Foreseeing Continuous Growth and Expansion towards 2026

Finansia Syrus Securities (FSS) stated in its report that the tone from the analyst’s meeting for SISB Public Company Limited (SET: SISB) was neutral. The executives discussed 1Q24 earnings and provided updates on school expansion in Chiang Mai, Bangkok, and Thonburi, expressing confidence in the project’s timely completion.

Once the expansion is finalized, SISB is set to accommodate 8,365 students by August 2025, marking a 19% increase from the 7,015 students recorded at the close of 1Q24. The company anticipates an annual EBITDA of THB 1.1-1.2 billion from the six school branches (excluding Chiang Mai), surpassing the THB 862 million EBITDA reported in 2023.

The student count surged by approximately 140 in 5M24, while analysts foresee a yearly increase of 500 students during 2024-2025 – a more optimistic projection compared to the executives’ conservative estimate of 400 students annually.

FSS expects a slowdown in SISB’s 2Q24 earnings on a quarterly basis, given the last semester period. Revenue from school-related activities, such as field trips, is likely to decline as these events are less common toward the end of the academic year.

The analyst upheld earnings projections for 2024-2026, forecasting growth rates of 41%, 24%, and 17% respectively. FSS also maintained a ‘BUY’ recommendation for SISB, with a target price of THB 44 per share.