Floating Button
Home Capital Broker's Calls

Maybank Securities maintain 12 cents target price for ISOTeam following property acquisition

The Edge Singapore
The Edge Singapore  • 2 min read
Maybank Securities maintain 12 cents target price for ISOTeam following property acquisition
Photo: ISOTeam
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Jarick Seet of Maybank Securities has kept his "buy" call and 12 cents target price on ISOTeam, following the company's announcement that it has acquired a dormitory for $5.7 million. By doing so, ISOTeam can further reduce costs otherwise to be spent on workers' accommodation.

The property, at 68 Loyang Way, is converted from a factory and has an existing capacity of 200 beds. ISOTeam plans to double this space and Seet, in his Feb 25 note, estimates that the company can enjoy cost savings of $1.3 million a year, and following the expansion, double that to $2.5 million.

In addition, the company is seen to announce more orders in the near term to the tune of $20 to $30 million, as a continuation of the pick-up in the pace of order wins. ISOTeam's announced order book, as at Feb 11, was $176.2 million.

And of course, investors will be paying close attention to how ISOTeam can start deploying drones for painting works. The company, the only painting contractor with this plan in the pipeline, will begin with a pilot deployment in March. "We believe this will re-rate ISOTeam significantly if it can deliver these solutions," says Seet.

The company recently reported 1HFY2026 earnings of $3.3 million, a 70% jump y-o-y, which helps support the analyst's expectation that ISOTeam will report a "stronger" FY2026.

Also, the company is likely to divest non-core assets worth between $7 and 10 million. Seet expects a portion of the proceeds from the sales could be used to reward shareholders with special dividends or higher ordinary dividends.

See also: Analysts remain cautious on UOB despite credit costs normalising

ISOTeam shares changed hands at 9.1 cents.

×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2026 The Edge Publishing Pte Ltd. All rights reserved.