The Ginko-AGT Global Growth Fund is becoming known for spotting companies primed for growth but still flying under the market’s radar. The fund has just become a substantial shareholder in ISOTeam, a well-known name in Singapore’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’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’s order book of nearly S$200 million -- as reported in Feb 2025 -- offers mid-term revenue visibility.
Other key reasons for ISOTeam’s appeal include:
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Strong government contracts: Much of ISOTeam’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’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’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’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.
It has a blend of long-term, contract-driven stability, a refreshed growth story, and innovative sustainability efforts. |
