ISO Team

ISO Team: UOB Kay Hian maintain BUY with a slightly higher target price of $0.52, and this comes shortly after DMG initiated coverage on the counter last week with a TP of $0.52 too. The house think the premium is justifiable given that 50% of ISOteam’s (ISO) earnings are highly defensive and recurring in nature as compared with that of its construction peers whose businesses are more cyclical in nature. With new residential units coming into the market and the company’s entry into the private sector, ISO’s targeted customer base is expected to continue expanding. Strategic tie-ups with developers, or partners like SKK, may also help drive growth, as ISO gains projects through partners’ networks. ISO has been securing private condominium projects through its collaboration with SKK. ISO has been the exclusive applicator of paintworks for both SKK and Nippon Paint in the public housing sector since 1998 and 2004 respectively. With a net cash position of about $10m, ISO is also ready to drive profitability through M&As.