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ISOTeam likely to report stronger FY2026 profits with potential special dividends: Maybank’s Seet

Felicia Tan
Felicia Tan • 2 min read
ISOTeam likely to report stronger FY2026 profits with potential special dividends: Maybank’s Seet
Anthony Koh, executive director and CEO of ISOTeam. Photo: Albert Chua/The Edge Singapore
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Maybank analyst Jarick Seet is maintaining his “buy” call and 10-cent target price on ISOTeam after the company announced that it clinched $26.6 million worth of contracts on Jan 26. The latest wins, which range from painting to repair and redecoration works, brings ISOTeam’s order book up to $176.2 million.

“Management is seeing a faster pace of contract awards, especially from the government sector and expects more to come,” Seet writes in his Jan 27 report. Based on ISOTeam’s historical rate, the analyst estimates that another $20 million to $30 million worth of orders could come in March.

ISOTeam has an existing order book of $76.2 million, of which 80% is slated to be completed within the next 18 months.

Shareholders can also look forward to ISOTeam’s new drone testing to begin by 2Q2026. ISOTeam is currently the only local contractor that’s using drones. The move could reduce costs by 30% to 40% and position it well in terms of technology, lower labour use and costs given the Singapore government’s push to use technology to reduce manpower, Seet notes.

“ISOTeam will begin testing its AI (artificial intelligence) drone-painting solution on an HDB site by 2Q2026 and it will be rolled out to more estates, if successful,” he writes.

With these factors, Seet expects stronger earnings for the FY2026 ended June as several job recognitions have been delayed to the 1HFY2026. The company’s full-year bottom line could also be helped by the increased speed of contract wins in recent months. Seet’s FY2026 core net profit estimate of $7 million is lower than the consensus net profit estimate of $8 million.

See also: Analysts maintain ‘buy’ call on FCT on backfilling of cinema spaces and overblown concerns on upcoming RTS

Seet is also anticipating a potential sale of non-core assets worth around $7 million to $10 million. He believes a portion of the proceeds from the sale could be used to reward shareholders with special dividends.

As at 10.16am, shares in ISOTeam are trading flat at 8.5 cents.

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