For its 1HFY2025, ISOTeam reported revenue of $65.4 million, up just 4.2% y-o-y. However, earnings reached $1.9 million, up 36.5% y-o-y, thanks to margin expansion.
As of Feb, the company's outstanding order book was $188.7 million, which will provide earnings visibility through FY2029.
"The group is well positioned to capture recurring demand from upgrading, sustainability retrofits, and infrastructure enhancement projects," says Tee.
According to Tee, ISOTeam is making good use of technology to improve its operations. Specifically, it is deploying facade cleaning and painting drones which will help improve productivity.
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Tee likes ISOTeam too for its attractive dividend prospects. The company has guided to pay at least 30% of its earnings for the current FY2025, which to her, is an indication of the company's confidence in its earnings recovery and robust project pipeline.
"ISOTeam’s dominant position in public sector upgrading, which contributes over 80% of revenue, coupled with expanding exposure to green projects, underpins resilient cash flows and long-term growth.
"With a healthy balance sheet, robust project pipeline, and increasing productivity from digitalisation, we expect steady earnings growth and margin expansion over the medium term," says Tee.
ISOTeam last traded at 7.6 cents, unchanged for the day and up 26.67% year to date.
