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.
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.
