CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Equity Bottom-Up

<section><div id="ember5290"><div id="ember5291"><div>Welcome to Business DNA, a chance for us to dig into the essential makeup of business leaders and their organizations. Our focus is not on the short term but rather on understanding the driving forces of a business. Our guest today is Kelvin Koh, CEO and Co-founder of <a href="https://www.smartkarma.com/entities/sisb-pcl" target="_blank" data-smartkarma-citation="entities:27425:1" rel="noopener">SISB Public Company Limited (SISB TB)</a>.</div></div></div></section>

Welcome to Business DNA, a chance for us to dig into the essential makeup of business leaders and their organizations. Our focus is not on the short term but rather on understanding the driving forces of a business. Our guest today is Kelvin Koh, CEO and Co-founder of SISB Public Company Limited (SISB TB).

We keep our BUY recommendation on SISB based on a maintained target price of Bt11.20, implying an upside of 20% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary sector due to its resilient business, and we maintain our 2021E target PB of 5.2x. 
Investment thesis:
<ul>
<li>Growing wealthy class increases demand for private international education</li>
<li>Renovations and ongoing expansions help growing student capacity</li>
<li>Maintaining high educational standards to remain competitive</li>
</ul>
Interim: Revenue was down only 0.6% YoY, showing that operations continue to normalize. Given the surge in the number of new students and the recovery of tuition fees, we keep seeing a promising mid-term outlook.
Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.

We keep our BUY recommendation on SISB based on a maintained target price of Bt11.20, implying an upside of 20% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary sector due to its resilient business, and we maintain our 2021E target PB of 5.2x. 
Investment thesis:

Growing wealthy class increases demand for private international education
Renovations and ongoing expansions help growing student capacity
Maintaining high educational standards to remain competitive

Interim: Revenue was down only 0.6% YoY, showing that operations continue to normalize. Given the surge in the number of new students and the recovery of tuition fees, we keep seeing a promising mid-term outlook.
Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.

SISB: Demand for Private Education on the Rise

We keep our BUY recommendation on SISB based on an unchanged target price of Bt11.20, implying an upside of 24% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary due to its resilient business and we maintain our 2021E target PB of 5.2x.
Investment thesis:
<ul>
<li>Growing wealthy class increases demand for private international education</li>
<li>Renovations and ongoing expansions help growing student capacity</li>
<li>Maintaining high educational standards to remain competitive</li>
</ul>
Interim: Revenue was down 7% YoY, but grew 17% QoQ as operations began to normalize following the shutdown in 2Q20. With its ongoing expansion plans and recovery of tuition fees, we see a promising mid-term outlook.
Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.

We keep our BUY recommendation on SISB based on an unchanged target price of Bt11.20, implying an upside of 24% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary due to its resilient business and we maintain our 2021E target PB of 5.2x.
Investment thesis:

Growing wealthy class increases demand for private international education
Renovations and ongoing expansions help growing student capacity
Maintaining high educational standards to remain competitive

Interim: Revenue was down 7% YoY, but grew 17% QoQ as operations began to normalize following the shutdown in 2Q20. With its ongoing expansion plans and recovery of tuition fees, we see a promising mid-term outlook.
Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.

SISB: Expect Further Upside in Thai Private Education

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Sri Trang Gloves (Thailand) / Equity Bottom-Up

We met up with two recently IPO'd companies, namely SISB (the country's only listed school) and STGT, the world's third largest glove producer and the hottest IPO on the SET in 2020. Here's what each of the companies told us.<ul>
<li>
SISB reported earnings decline of 50% QoQ, 40% YoY to just Bt29m in Q2'20 on the back of a revenue decline of 20% QoQ, 16% YoY to Bt228m due to campus closure and loss of small children from the student body.</li>
<li>However, the school chain only closed its Ekamai campus and avoids any faculty layoff as it has plans to open new campuses by 2022 and is in the process of negotiating expansion plans in Vietnam.
</li>
<li>
Sri Trang Gloves reported Bt1.05bn earnings in Q2'20, up 150% QoQ and 487.7% YoY. It is an indisputable record quarter for them, and management sounded a little overconfident saying that even the vaccine will not hurt demand (which we don't agree with at all).</li>
<li>Nevertheless, it is true that the waiting period for rubber gloves can range between 16-22 months thanks to the massive backlog. The company is expanding its capacity 10% next year and another 30% after that.</li>
</ul>

We met up with two recently IPO'd companies, namely SISB (the country's only listed school) and STGT, the world's third largest glove producer and the hottest IPO on the SET in 2020. Here's what each of the companies told us.

SISB reported earnings decline of 50% QoQ, 40% YoY to just Bt29m in Q2'20 on the back of a revenue decline of 20% QoQ, 16% YoY to Bt228m due to campus closure and loss of small children from the student body.
However, the school chain only closed its Ekamai campus and avoids any faculty layoff as it has plans to open new campuses by 2022 and is in the process of negotiating expansion plans in Vietnam.


Sri Trang Gloves reported Bt1.05bn earnings in Q2'20, up 150% QoQ and 487.7% YoY. It is an indisputable record quarter for them, and management sounded a little overconfident saying that even the vaccine will not hurt demand (which we don't agree with at all).
Nevertheless, it is true that the waiting period for rubber gloves can range between 16-22 months thanks to the massive backlog. The company is expanding its capacity 10% next year and another 30% after that.


IPO Stalker: SISB's Pandemic Is Sri Trang Gloves' Profits

We have a BUY recommendation on SISB based on a target price to Bt11.20, implying an upside of 33% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary due to its resilient business and we apply a 15% small-cap discount. This implies a target PB of 5.0x.
Investment thesis:
<ul>
<li>Growing wealthy class increases demand for private international education</li>
<li>Renovations and ongoing expansions help growing student capacity</li>
<li>Maintaining high educational standards to remain competitive</li>
</ul>
Interim: In response to the temporary closure of its schools, SISB granted lower tuition fees for the current academic year, reducing net profit in the short run. With its ongoing expansion plans and recovery of tuition fees, we see a promising mid-term outlook.
Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.

We have a BUY recommendation on SISB based on a target price to Bt11.20, implying an upside of 33% from the current price. We think SISB deserves to trade at a premium to the Thai Consumer Discretionary due to its resilient business and we apply a 15% small-cap discount. This implies a target PB of 5.0x.
Investment thesis:

Growing wealthy class increases demand for private international education
Renovations and ongoing expansions help growing student capacity
Maintaining high educational standards to remain competitive

Interim: In response to the temporary closure of its schools, SISB granted lower tuition fees for the current academic year, reducing net profit in the short run. With its ongoing expansion plans and recovery of tuition fees, we see a promising mid-term outlook.
Risks: Potential shortage of qualified educators, increased competition, dependency on key management, adverse regulatory changes regarding private education.

SISB: Good Entry Point for Investment in Private Schools

Thailand

SISB Public Co., Ltd. operates international schools in Thailand, providing education from nursery to secondary levels (Nursery-Kindergarten to Sixth Form). The schools adopt the Singapore and UK curriculum, emphasizing trilingual proficiency in English, Chinese, and Thai. SISB was founded in 2001 and is headquartered in Bangkok, Thailand.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SISB (SISB TB)

Business DNA: Kelvin Koh of SISB

Business DNA interview with Kelvin Koh of SISB. Business DNA is a chance for us to dig into the essential makeup of business leaders and their...

A. Stotz Investment Research

SISB: Demand for Private Education on the Rise

We keep our BUY recommendation on SISB based on a maintained target price of Bt11.20, implying an upside of 20% from the current price.

A. Stotz Investment Research

SISB: Expect Further Upside in Thai Private Education

We keep our BUY recommendation on SISB based on an unchanged target price of Bt11.20, implying an upside of 24%. We think SISB deserves to trade at...

A. Stotz Investment Research

IPO Stalker: SISB's Pandemic Is Sri Trang Gloves' Profits

IIG tripled on its first trading day and hit

Athaporn Arayasantiparb, CFA

SISB: Good Entry Point for Investment in Private Schools

We have a BUY recommendation on SISB based on a target price to Bt11.20, implying an upside of 33% from the current price. We think SISB deserves...

A. Stotz Investment Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)