Broker Name: CGS International Securities
Date of Report: February 13, 2026
Excerpt from CGS International Securities report.
- ISOTeam Ltd posted strong margin recovery in 1HFY26, with PATMI up 70% year-on-year, driven by cost savings mainly from housing foreign workers at its headquarters.
- More cost savings are expected as the company plans to re-house up to 85% of its workforce at its own premises, potentially saving S\$2.4m annually.
- The rollout of painting drones for industrial projects is delayed to 4QFY26, with further deployment in new-build/R&R projects expected by Mar 2026/Dec 2027; these are seen as catalysts for efficiency and order book growth.
- Recurring business model and margin recovery support an “Add” rating, with a higher target price of S\$0.12, despite lowered EPS forecasts due to more conservative revenue assumptions.
- Order wins in 2026 have already reached 58% of the forecast, with continued growth in renewable solutions contracts and strong ESG credentials, including green product offerings and solar adoption.
- ISOTeam aims for carbon neutrality in Scope 1 and 2 emissions by 2050, and maintains its Green and Gracious Builder Award accreditation.
Report Summary
- ISOTeam Ltd is recovering its margins through operational cost savings and innovative housing solutions for workers.
- Further cost reductions and efficiency gains are expected from drone deployment and expansion of renewable projects, supporting positive earnings outlook and order book growth.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com/
