In today’s briefing:
- Vicom : Well Run Company with High ROE
- Vicom Ltd: When Less Is More
- ISOTeam Ltd – Short-Term Miss, Long-Term Momentum
Vicom : Well Run Company with High ROE
- Number 1 service provider in inspection and technical testing services in Singapore
- Very high net profit margin of 20% and 20%+ ROE
- Consistently makes free cash flow but earnings growth is limited
Raising Money for Persons with Disabilities in Singapore
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This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum. We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.
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Vicom Ltd: When Less Is More
What does a company do when its original business is producing good profitability, strong cashflow and return on equity (“ROE”), but no growth?
VICOM Ltd. (“VICOM”) is one such company.
It is a pioneer in Singapore’s Vehicle Inspection industry and has close to 73% market share, in an industry whose demand is guaranteed by government regulation that all vehicles have to be inspected at regular intervals.
ISOTeam Ltd – Short-Term Miss, Long-Term Momentum
- ISOTeam’s FY2025 results fell short of our expectations, with revenue declining 8.4% yoy to S$119.2m (11.7% below our forecast) and net profit attributable to shareholders dropping 21.2% yoy to S$5.1m (29.2% below forecast).
- The weaker performance was primarily driven by delayed project commencements in Repairs & Redecoration (–42.9% yoy) and Coating & Painting (–14.4%) segments, partially offset by strong growth in Addition & Alteration (25.0% yoy) and Others (10.4% yoy) segments.
- Gross margin improved modestly on better project mix and pricing, but earnings was further weighed down by lower other income and a higher effective tax rate.
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