- We expect high growth ahead and initiate coverage on ISOTeam with BUY and a target price of S$0.09, based on a blended 8x FY25/26E P/E.
- ISOTeam (SGX:5WF), a major local painter (30% market share) for government housing projects (HDB), bounced back to profitability in FY24 as older projects with lower margins have all been executed.
Investment thesis
Inflection point of profitability and margins
- - Read this at SGinvestors.io -
- In addition, its remaining orderbook of S$202.4m already reflects the revised quotations with higher margins and we expect FY25E to see a huge recovery in margins, which should boost profits significantly by more than 200%.
- - Read this at SGinvestors.io -
Drone painting – a potential game-changer
- Read more at SGinvestors.io.