ISO TEAM

ISO TEAM: ISOTeam’s share price hit an all-time high of $0.50 last Friday, after the group replied to an SGX trading query, that is currently at an advanced stage of negotiations to acquire stakes in certain target companies, although no formal agreement has been reached. In a recent interview by the Business Times and Edge Magazine, ISOTeam claimed that it is relatively immune to Singapore’s softening property market, given its focus on maintenance and upgrading, instead of new builds. Moving forward, the firm aims to increase its scope of services, where its relatively new design and renovation business, Zara@ISOTeam has already clinched more than 20 projects in the first nine months after incorporation. The group plans to develop a new business specialising in rental equipment for other players in the R&R industry. ISOTeam is also on the look out for M&A’s to grow its business, and remains open to either a horizontal or vertical acquisition strategy. At the same time, the group aims to expand its services to untapped markets, which could include the likes of military camps, industrial parks and education institutions. The group currently has an order book of $73.2m underpinning revenue visibility over the next year. At current price ISOTeam trades at 8.3x forward P/E. The street has 2 Buy ratings with a consensus TP of $0.67