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After Beng Kuang and Oiltek, ISOTeam Is Ginko-AGT Fund&rsquo s Newest Bet
18 July 2025
The Ginko-AGT Global Growth Fund is becoming known for spotting companies primed for growth but still flying under the market&rsquo s radar. The fund has just become a substantial shareholder in ISOTeam, a well-known name in Singapore&rsquo s building maintenance and HDB estate upgrading sector.That sort of explains the recent strength in ISOTeam' s stock price, which is up 50% year to date. Sharp price appreciation of two small-caps Beng Kuang Marine and OilTek was also seen prior to the fund emerging as their substantial shareholder (charts below). |
According to a filing on the SGX yesterday, the fund holds 370.8 million shares of ISOTeam, or 5.24% stake, worth $3.2 million (based on stock price of 8.7 cents).
Why ISOTeam stood out to Ginko-AGT? ISOTeam has been reinventing itself in the past few years.
The company&rsquo s financial turnaround in 2024 included a recovery from Covid-19 slump, completion of low-margin projects secured pre-pandemic, and a successful rights issue that bolstered its balance sheet.
ISOTeam&rsquo s order book of nearly S$200 million -- as reported in Feb 2025 -- offers mid-term revenue visibility.
Other key reasons for ISOTeam&rsquo s appeal include:
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Strong government contracts: Much of ISOTeam&rsquo s business is tied to public sector contracts in Singapore, offering a steady stream of work and resilience even during economic uncertainty.
New technology-driven edge: The company has invested in AI-driven drone painting solutions, making it a first mover in the market and enhancing efficiency.
Attractive valuation and returns: Analysts see upside for ISOTeam&rsquo s stock, supported by improving profits and a rising dividend, with a new policy to return up to 30% of net profit to shareholders.
The fund&rsquo s approach has preceded strong corporate earnings before:
Beng Kuang Marine
When Ginko-AGT became a major investor in Beng Kuang Marine in 2024, the company soon notched up a 168% jump in FY2024 profits to $21 million, supported by a one-off gain from a land sale and rising offshore and marine sector demand.
Ginko ceased to be a substantial shareholder in Feb 2025.
Oiltek International
Ginko-AGT&rsquo s investment in Oiltek International, too, preceded an even more dramatic surge in the stock price that has continued to now.
Oiltek' s FY2024 profit jumped 50% to RM29.6 million on higher revenue for its equipment that refine vegetable oils (like palm oil and soybean oil) into usable products and that produces biodiesel.
Recently, UOB Kay Hian raised its target price to 80 cents, despite relatively high valuations.
In a July 2025 note, CGS International has a target price of 10 cents based on 8x FY26F P/E. ISO is trading at a FY26F dividend yield of 4.7%. With Ginko-AGT onboard, ISOTeam is likely to attract further attention from investors. It has a blend of long-term, contract-driven stability, a refreshed growth story, and innovative sustainability efforts. If the past is any guide, ISOTeam may be on the cusp of stronger performance, just as Beng Kuang and Oiltek were after the fund&rsquo s entry. |
So going up 10cents?
SmallSmall ( Date: 18-Jul-2025 10:32) Posted:
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You forgot OKP. Although this was not disclosed as a purchase, Greg See from AGT did mentioned about this company too in the Edge.
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Gregory See of AGT Partners believes companies in the small- to-mid cap space hold the greatest potential for value.
He has previously profited from notable stocks like supermarket opera- tor Sheng Siong Groupand Oiltek International, which was a top performing stock last year.
With the improving fundamentals in this sector, See is now targeting the construction industry for his next set of winners.
The pandemic has led to a number of contractors quitting, leaving those still standing to capitalise on the robust volume of work available, at least in the foreseeable future, by running their businesses more efficiently.rn Mor
e&ldquo Sooner or later, the supply will catch up, but not yet, so it is still quite a sweet spot.
And if you can find a good company that has good gross margins, a healthy balance sheet and of course, a strong valuation at a very cheap price, then I think it is an okay investment to go for the medium term.&rdquo
One such stock, which See highlights, is OKP Holdings.
As of Dec 31, 2024, its free cash and cash equivalents were $124.3 million, nearly equivalent to its market cap of $155 million as of March 4.
See adds: &ldquo Broadly speaking, few stocks have a very high amount of net cash on balance sheet as compared to market cap, or almost equivalent to it.
This doesn&rsquo t include the fact that some of them have investment security investment properties.
This gives them quite good recurring income, and the small amount of debt that is sitting on their balance sheet is actually backed by mortgages, backed by industrial properties or commercial properties, or in the case of OKP, shophouses.&rdquo
Furthermore, the fund manager likes that a third of OKP&rsquo s business comes from maintenance contracts.
This provides a stable base, in contrast to project-led order books, which can vary.
He likes Hock Lian Seng as well.
&ldquo Their results are not as strong, but you look at the amount of cash and investment securities, they have equivalent to the market cap, and the business itself is still profitable.&rdquo
Although See says he has both OKP and Hock Lian Seng in his portfolio, he prefers the former slightly more, owing to its friendlier communication with shareholders.
Pan-United is another stock See favours, due to its strong dividends and rising share price, which he notes has increased by around 50% since his initial investment.
&ldquo From six to seven times multiple, now it' s about 10 times because earnings went up, but not so much. So it is really about valuation re-rating.&rdquo
Overall, the fund manager notes that the construction sector as a whole is not undervalued, but certain stocks within are and have stayed undervalued for a long time.
--->
Gregory See of AGT Partners believes companies in the small- to-mid cap space hold the greatest potential for value.
He has previously profited from notable stocks like supermarket opera- tor Sheng Siong Groupand Oiltek International, which was a top performing stock last year.
With the improving fundamentals in this sector, See is now targeting the construction industry for his next set of winners.
The pandemic has led to a number of contractors quitting, leaving those still standing to capitalise on the robust volume of work available, at least in the foreseeable future, by running their businesses more efficiently.rn Mor
e&ldquo Sooner or later, the supply will catch up, but not yet, so it is still quite a sweet spot.
And if you can find a good company that has good gross margins, a healthy balance sheet and of course, a strong valuation at a very cheap price, then I think it is an okay investment to go for the medium term.&rdquo
One such stock, which See highlights, is OKP Holdings.
As of Dec 31, 2024, its free cash and cash equivalents were $124.3 million, nearly equivalent to its market cap of $155 million as of March 4.
See adds: &ldquo Broadly speaking, few stocks have a very high amount of net cash on balance sheet as compared to market cap, or almost equivalent to it.
This doesn&rsquo t include the fact that some of them have investment security investment properties.
This gives them quite good recurring income, and the small amount of debt that is sitting on their balance sheet is actually backed by mortgages, backed by industrial properties or commercial properties, or in the case of OKP, shophouses.&rdquo
Furthermore, the fund manager likes that a third of OKP&rsquo s business comes from maintenance contracts.
This provides a stable base, in contrast to project-led order books, which can vary.
He likes Hock Lian Seng as well.
&ldquo Their results are not as strong, but you look at the amount of cash and investment securities, they have equivalent to the market cap, and the business itself is still profitable.&rdquo
Although See says he has both OKP and Hock Lian Seng in his portfolio, he prefers the former slightly more, owing to its friendlier communication with shareholders.
Pan-United is another stock See favours, due to its strong dividends and rising share price, which he notes has increased by around 50% since his initial investment.
&ldquo From six to seven times multiple, now it' s about 10 times because earnings went up, but not so much. So it is really about valuation re-rating.&rdquo
Overall, the fund manager notes that the construction sector as a whole is not undervalued, but certain stocks within are and have stayed undervalued for a long time.
Solubl ( Date: 18-Jul-2025 10:21) Posted:
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https://www.nextinsight.net/story-archive-mainmenu-60/948-2025/16248-after-beng-kuang-and-oiltek-isoteam-is-ginko-agts-newest-bet
After Beng Kuang and Oiltek, ISOTeam Is Ginko-AGT Fund&rsquo s Newest Bet