Upcoming projects that ISOTeam may go for include new hawker centres, upgrading of coffeeshops, additional facilities in housing estates. There is also the move to apply heat-reflective pain on all public housing by 2030 - a market ISOTeam is already in.
"As such, we expect construction activities to ramp up, ahead of the upcoming polls and beyond. These should benefit ISOTeam, as it could garner more orders and record stronger revenue recognition going forward," says Yeo.
For the current FY2025 to FY2027, Yeo has raised his earnings estimates by 11% each, as project timelines are seen to accelerate. In addition, Yeo figures that ISOTeam will enjoy better gross margins.
The company, as an indication of its earnings visibility, has recently introduced a new dividend policy of a 30% payout ratio going forward, which raises Yeo's estimated dividend yield to 5% from 4%.
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Revenue, of course, is underpinned by Its $188.7 million order book as at Feb 11.
ISOTeam changed hands at 7.6 cents as at 9.40 am.
