ISOTeam - CGSI Research 2025-04-15: Autonomous Painting Drones To Boost Profit

• ISOTeam (SGX:5WF)'s PATMI likely to triple in FY25F on post-COVID-19 contracts secured at higher margins and rise 26% in FY26F on utilisation of autonomous painting robots.
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FY25F/26F PATMI to triple/+26% y-o-y on higher margins & BuildTech.

• We expect ISOTeam's profit margins to improve, driven by
  1. the execution of input cost-adjusted pricing on contracts secured post-COVID-19, and
  2. the utilisation of drones, which we estimate could reduce painting-related costs by 30-40% and increase productivity.
• - Read this at SGinvestors.io -
• Based on our scenario analysis, the gross profit margin could reach 27% assuming 100% painting drone utilisation. We believe ISOTeam’s more competitive cost structure (vs. peers) and improved productivity could enable it to increase its market share, specifically in the coating & painting (C&P) segment. As such, we expect to see ISOTeam's core PATMI to surge in FY25F/26F.

Potential for new revenue stream and geographical diversification

• Read more at SGinvestors.io.

Above is an excerpt from a research report by CGSI Research.
Clients of CGS International may access the full PDF report @ https://itrade.cgsi.com.sg/.

Price targets by 3 other brokers at ISOTeam Target Prices.

Listing of research reports at ISOTeam Analyst Reports.

Relevant links:
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ISOTeam Dividend Payout Dates & Corporate Actions,
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