ISEC

ISEC: Maybank-KE initiated with a BUY rating and TP of $0.52, citing that demand for eyecare can only grow owing to ageing populations, rising myopia and astigmatism among the young, and insufficient number of trained ophthalmologists. ISEC aspires to a regional stage, organically and by buying other practices. It aims to grow to a size where Singapore and Malaysia will only contribute 20% to revenue and profit in five years’ time, down from 100%. With its Singapore listing as a platform, house believes it should be able to acquire at EPS-accretive valuations. Risks include key-man and ringgit weakness.