He observes that ISOTeam's share price has already gained 26% year to date and up 133% y-o-y but even so, CEO Koh has recently paid 7.55 cents each to buy 3 million shares.
"We believe the commitment of the CEO’s own funds is the best validation of Isoteam ’s outlook," says Seet.
ISOTeam, best known as a painting contractor, is poised to start deploying drones to do this job. According to Seet, being the only contractor in town to use this method, ISOTeam can possibly cut costs by between 30 and 40%.
Also, the strong pipeline of building projects will help ISOTeam build up a bigger orderbook that includes works involving the public sector. "We believe ISOTeam will be a key beneficiary of the upcoming Singapore election and the ongoing construction boom," says Seet.
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"We think sector margins could potentially be higher than we previously expected due to the increase in demand, coupled with ISOTeam’s high operating leverage," says Seet.
He has revised his FY2026 earnings estimate by 8% and FY2027's by 11.5%, leading to his higher target price of 10.4 cents which is pegged to the same 9x blended FY2025 and FY2026 earnings.
ISOTeam shares traded at 7.7 cents as at 9.45 am, down 1.28%.
