Broker: CGS International Securities Date of Report: April 21, 2026
Excerpt from CGS International Securities report.
Report Summary
- Stock: ISOTeam Ltd (ISO SP)
- Call to Action: ADD (equivalent to Buy)
- Target Price: S\$0.11 (previous target S\$0.12)
- Current Price: S\$0.081 (upside: 40.1%)
- Key Idea: ISOTeam announced S\$30m in new contract wins, bringing YTD wins to S\$100.2m, or 80% of the FY26F order win forecast. The company’s orderbook stands at S\$186.5m.
- Highlights:
- Drone roll-out for painting delayed to 2H FY27F, but margin recovery is intact due to cost savings from in-house worker accommodation and higher-margin post-Covid contracts.
- Net profit margin (NPM) is expected to expand by 50 basis points in FY27F with the first 200 workers relocated to company-owned dormitories, and a further 45bp in FY28F as capacity increases to 400 beds, cutting accommodation costs by 50%.
- Implications:
- Investors should note the recurring business model and margin recovery as key strengths. The delayed drone roll-out slightly lowers FY27F EPS, but cost savings from worker housing offset this impact. Key catalysts include stronger order book growth and commercialisation of BuildTech solutions.
- Risks include further delays in drone utilisation and contract completion, or issues securing foreign labor/subcontractors.
- Ticker: ISO SP
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
