SINGAPORE (Aug 1): As the Singapore construction sector awakens from its slump, ISOTeam is well placed to tap new markets and win more contracts.

Not only has the one-stop building and engineering company rolled out a new improved tender process that focuses on smooth work flow and quality, it recently acquired Pure Group, which will open the doors to clients beyond Singapore’s shores.

See: ISOTeam makes $24 mil acquisition of Pure Group to bolster regional foothold

As at end April, ISOTeam’s order book already stands at $129 million, which is 1.54 times FY18 revenue. This comes after it won several high profile projects in the private and government sectors.

To be sure, analysts see ISOTeam’s acquisition a “profit guarantee” as the earn-out formula provides earnings contributions of $3 million in FY20 and $5 million in FY21.

With Pure, ISOTeam will find it easier to break into new markets like the Philippines, China, Malaysia and Thailand.

Notable regional clients of Pure include Vanguard Hotels and Swarovski SEA.

This is due to their combined expertise in project and construction management as well as engineering services and solutions business.

Domestically, it will smoothen ISOTeam’s plan to expand into Singapore’s two Integrated Resorts (IRs) which will invest a total of $9 billion to refresh their non-gaming components.

More importantly, both ISOTeam and Pure Group have worked with Marina Bay Sands before.

ISOTeam also stands to benefit from the expansion of the Home Improvement Programme, which will add 230,000 HDB households to the retrofitting programme.

Higher demand for solar panel installations due to Sunseap’s offshore floating photovoltaic (PV) system here should also contribute positively.

Research house SAC Advisors is initiating coverage on ISOTeam with a “buy” and 33 cents target price while RHB is maintaining its “buy” with 31 cents target price.

As at 3.46pm, shares in ISOTeam are trading flat at 24 cents or 0.96 times book value with a dividend yield of 1.7%.