IPS Securex

IPS Securex: OSKDMG maintains Buy with TP $1.26. CEO Kelvin is in town for half a day to share IPS's business and its plans going forward with Brandon taking over after that.IPS is planning to have a joint collaboration with Wattre Corp on developing the loudest whistle - Hyperspike whistle which can goup to 143DB. Current loudest world record for whistles can only go up to 110DB. They plan to incorporate or replace these whistlesin life vests, airports and on train conductors. Mainly 90% of their customers are governments in Asia pacific with its orderbookremaining strong while earnings growth should be able to maintain or outperform going forward. IPS hopes to increase theproportion of recurring revenue that comes from maintenance and leasing. There is minimal risk of suppliers bypassing IPS to sellproducts directly because the suppliers do not have expertise in sales and do not have the customer base to match IPS. Pepperball, their potential game changer has been around for 7 years and IPS is the only company doing distribution for this product inSEA. The house expect them to secure a contract on this front worth at least US$30m in the next few months that will bring IPS earningsto a whole new level.