ISOTeam - RHB Invest 2016-06-17: Maintain Conviction Buy

ISOTEAM LTD 5WF.SI

ISOTeam - Maintain Conviction Buy

ISOTeam (ISO SP) announced in May that it has secured SGD26.3m worth of contracts from 11 new private and public sectors as we have previously expected. This brings ISOTeam's orderbook as of end May to SGD100m, a record high, providing visibility into their earnings for the next 2 years.

Going forward, we expect ISOTeam to secure more projects, both on the A&A and R&R front with the results of a few tender bids which will be known in the near-term.
In addition, we also expect more continuous solar installation projects in the near-term from Sunseap, with 70+% of the first contract win already completed.
All in all, we are excited about the prospects of ISOTeam and remain convicted with ISOTeam’s steady growth plans.
Maintain Conviction buy with a DCF-backed TP of SGD0.41, implying a 10x FY16F P/E.

Jarick Seet RHB Invest | http://www.rhbinvest.com.sg/ 2016-06-17

RHB Invest SGX Stock Analyst Report BUY Maintain BUY 0.41 Same 0.41