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ISOTeam Ltd (ISO SP): Expanding drone capabilities
- BUY Entry – 0.057 Target– 0.061 Stop Loss – 0.055
- ISOTeam Ltd. is a building maintenance and estate upgrading company experienced in implementing eco-driven solutions through R&R and A&A services to the public and private sector. The Company has extensive experience in upgrading, retrofitting and maintenance of buildings and facilities in Singapore, and reshapes and rejuvenates public housing landscape, amenities, and environment.
- Drone potential. ISOTeam signed a binding MOU with Acclivis Technologies and Nippon Paint (Singapore) to develop autonomous painting drones for building facades which marks a strategic step toward revolutionizing the built environment. By integrating AI-driven drone technology, ISOTeam can enhance its productivity and significantly reduce reliance on manpower, addressing labour shortages and high costs in Singapore. These drones promise substantial cost and time savings by eliminating scaffolding requirements, minimizing labour-intensive processes, and enhancing operational safety. Furthermore, the standardized operations of these drones improve quality control and allow for advanced inspection and tracking capabilities, ensuring consistent results. Public adoption of such technology could position ISOTeam as a leader in innovative and sustainable building maintenance solutions, broadening its market reach and enhancing its competitive edge. This initiative builds on the company’s existing efforts, such as its collaboration with H3 Dynamics for HDB facade projects, to further cement its expertise in AI and automation-driven solutions, creating new growth opportunities for the company.
- Growth through more projects. ISOTeam operates across four segments with nearly two-thirds of its contracts stemming from public-sector projects, including Housing Board upgrades. The company expressed optimism about sustained growth, supported by steady demand from government-driven projects like the Home Improvement and Neighbourhood Renewal Programmes. Singapore’s construction sector is expected to grow by 12% in 2024 according to Turner & Townsend and public-sector projects are expected to account for 60% of the S$27bn to S$32bn construction demand projected for the year. As of June 30, ISOTeam’s order book stood at S$175.8mn, providing visibility for the next two years.
- 2H24 results review. Revenue rose 19.3% from S$56.5mn in 2H23 to S$67.4mn in 2H24. Revenue increase was mainly due to higher revenue generated by the core business segments (R&R, A&A and C&P), partially offset by the decrease in revenue from the others business segment because of disposal of a subsidiary. The Group’s gross profit increased by S$5.8mn from S$6.1mn in 2H23 to S$11.9mn in 2H24 and increased by S$9.1mn from S$11.1mn in FY23 to S$20.2mn in FY24 mainly due to improved margins.
- Market Consensus.
(Source: Bloomberg)
Centurion Corp Ltd (CENT SP): Potential REIT listing
- RE-ITERATE BUY Entry – 0.98 Target– 1.06 Stop Loss – 0.94
- Centurion Corporation Limited provides purpose-built workers and student accommodation services. Centurion owns, develops, and manages quality and purpose-built workers accommodation assets. Centurion serves customers worldwide.
- Exploratory REIT listing. Centurion Corporation is considering establishing a real estate investment trust (REIT) comprising its workers’ and student accommodation assets. If approved by the Singapore Exchange (SGX) and Monetary Authority of Singapore, the REIT will be listed on SGX’s mainboard. Centurion is working with DBS Bank and UBS to evaluate terms and timing. A potential dividend-in-specie of REIT units to shareholders is also under review. However, there’s no certainty the listing will proceed, as past plans in 2015 were deferred due to SGX’s chain listing rule considerations.
- Inorganic growth through geographical expansion. Centurion entered China’s Purpose-Built Student Accommodation (PBSA) market with two master-leased properties in Kowloon, Hong Kong. These properties will be refurbished to cater to students, which commenced operations in September 2024. Furthermore, a third master lease for a larger Purpose-Built Workers Accommodation (PBWA) in the New Territories was secured, commenced operations in December 2024. To further solidify its presence, Centurion also established two joint ventures with Xiamen’s CityHome Apartments for two master-leased Build-to-Rent (BTR) projects, offering a combined 1,500 beds. These strategic acquisitions are anticipated to significantly enhance Centurion’s revenue potential.
- 3Q24 results review. Revenue rose by 22% YoY to S$62.1mn in 1H24, from S$51.0mn in 3Q23, due to strong occupancy rates and healthy rental revisions across its portfolio of PBWAs and PBSAs.
- Market Consensus.
(Source: Bloomberg)
Zijin Mining Group Co. Ltd. (2899 HK): Moving to Lithium
- BUY Entry – 15.0 Target – 17.0 Stop Loss – 14.0
- Zijin Mining Group Company Limited is a China-based company in mineral business. The Company operates nine segments. The Gold Bullion segment mainly produces gold ingots for the production links of other divisions. The Processed, Refined and Trading Gold segment is engaged in the processing of purchased gold ingots and trading gold ingots. The Gold concentrate section processes gold bearing ores and generates gold concentrates. The Electrolytic Copper segment is produced by electrolytic copper and electrowinning copper. The Refined Copper segment is engaged in the processing of self-produced copper and purchased copper. The Copper concentrates segment processes copper ore and produce copper concentrate. The Other Concentrate segment is responsible for producing zinc concentrate, tungsten concentrate and lead concentrate. The Zinc Bullion segment produces zinc ingots. Others segment is mainly engaged in the sales of sulfuric acid, copper strip, silver and iron.
- Potential foray into lithium. China’s Zijin Mining Group Co. is stepping up its foray into lithium with the potential purchase of a Chinese producer of the battery material. The company is currently in talks to buy shares in Zangge Mining Co. Ltd. that could lead to a takeover. Zangge is based in China’s minerals-rich western region of Qinghai and has a market value of 46.6 billion yuan on the Shenzhen Stock Exchange. It primarily produces potash — used in fertilizer — but gets about a third of its revenue from lithium extracted from salt lakes in Qinghai. The company’s recent lithium push was driven by the prospect of a decades-long demand boom for the material used in EV batteries.
- China increasing its gold reserves. China’s central bank expanded its gold reserves for a second month in December, signaling renewed appetite after temporarily pausing purchases last year as prices soared. Bullion held by the People’s Bank of China rose to 73.29 million fine troy ounces in December, from 72.96 million in the previous month, according to sources. The central bank resumed adding to its gold reserves in November after a 6-month pause.The purchase shows the PBOC is still keen to diversify its reserves even with gold at historically expensive levels.
PBOC Gold Reserves
(Source: PBoC, World Gold Council)
- Economic uncertainties to support gold prices. The World Gold Council highlighted in its 2025 gold outlook that if the economy performs according to market-consensus expectations gold prices should rise at a more modest rate than this year. Gold has potential for upside if central-bank demand proves stronger-than-expected or if a rapid financial deterioration drives safe-haven demand—though a reversal of the interest rate cutting cycle would bring challenges. Concerns about mounting European sovereign debt—coupled with continued geopolitical instability in the Middle East, Eastern Europe and elsewhere, also continues to add to the support for gold prices. The market currently is pricing in around 100 basis points of U.S. interest-rate cuts for 2025, with a similar figure expected for European central banks. This is also likely to positively affect gold prices, as will expectations for the U.S. dollar to remain flat or slightly weaken as conditions normalize.
Gold Price and Dollar Index Trend
(Source: Bloomberg)
- 3Q24 earnings. Operating income rose 7.11% YoY to RMB80.0bn in 3Q24, compared with RMB74.7bn in 3Q23. Net profit rose 54.8% to RMB11.2bn in 3Q24, compared to RMB7.24bn in 3Q23. Basic earnings per share was RMB0.349 in 3Q24, compared to RMB0.223 in 3Q23.
- Market consensus.
(Source: Bloomberg)
Lenovo Group Ltd. (992 HK): Exciting CES releases
- RE-ITERATE BUY Entry – 9.70 Target – 10.90 Stop Loss – 9.10
- Lenovo Group Ltd is an investment holding company primarily engaged in development, manufacture and marketing of technology products and services. The Company operates its business through three segments. The Intelligent Devices Group segment is engaged in the manufacture and sale of personal computer (PC), tablet, smartphone and other smart devices. The Infrastructure Solutions Group segment is engaged in the provision of artificial intelligence (AI) products, services and partnerships, the development of comprehensive full-stack infrastructure solutions portfolio as well as the provision of storage solutions. The Solutions and Services Group segment is engaged in the provision of information technology (IT) solutions and services across PC, infrastructure, and smart verticals, including attached services, managed services and As a Service (AaS) offering. The Company conducts its business in the domestic and overseas markets.
- Exciting CES releases. At CES 2025, Lenovo unveiled an impressive lineup of consumer, gaming, and commercial products, showcasing its vision for the future of AI-driven technology, modern design, and advanced performance. The launch included new ThinkPad and IdeaPad laptops, Legion gaming devices, and tablets, all aimed at enhancing user experiences across diverse sectors. Among the highlights were two groundbreaking innovations set to redefine personal computing and gaming. Lenovo introduced the ThinkBook Plus Gen 6 Rollable AI PC, the industry’s first commercially available notebook with a rollable OLED display. This revolutionary device expands its screen by up to 50%, extending from a 14-inch base size, providing professionals on the go with a larger, more versatile workspace. Also making its debut was the Legion Go S, a handheld gaming console powered by SteamOS, offering gamers a portable, high-performance solution for immersive gameplay. These cutting-edge products underscore Lenovo’s commitment to pushing technological boundaries and addressing the evolving needs of users across various segments.
- More presence in Saudi Arabia. Lenovo recently finalized a USD 2 billion deal with Alat Enate, a unit of Saudi Arabia’s Public Investment Fund, as part of a strategic cooperation agreement announced in May 2024. As part of the partnership, Lenovo will establish a regional headquarters for the Middle East and Africa in Riyadh and build a sustainable manufacturing facility in Saudi Arabia to serve both regional and global markets. The new plant, set to begin production in 2026, is expected to deliver several million PCs and servers annually. This facility will play a pivotal role in Lenovo’s global manufacturing network, which currently spans over 30 markets, including Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the United States. Lenovo emphasized that its Middle East business is poised for accelerated growth this year, further enhancing its global influence and diversified manufacturing footprint while driving its business transformation initiatives. The company plans to introduce its world-class supply chain, technology, and manufacturing expertise to Saudi Arabia, contributing to the creation of thousands of jobs and supporting the country’s long-term economic goals.
- Partnership to with Volcano Engine. At the recent 2024 Lenovo Tianxi Ecosystem Partner Conference in Beijing, Lenovo officially announced its partnership with Volcano Engine. Leveraging the “super brain” of the Doubao large language model, Lenovo’s AI desktop assistant, Ruyi, will evolve from a traditional system tool into a comprehensive intelligent conversational assistant. This transformation aims to significantly enhance user interaction with PC systems, offering a more advanced and intuitive experience. These upgrades are expected to drive increased consumer interest and boost demand for Lenovo’s AI-powered PCs.
- 1H25 earnings. Revenue increased by 21.9% to US$33.3bn in 1H25, compared with US$27.3bn in 1H24. Net profit rose by 34.8% to US$636.8mn in 1H25, compared to US$472.5 in 1H24. Basic EPS rose to 4.91 US cents in 1H25, compared with 3.57 US cents in 1H24.
- Market consensus.
(Source: Bloomberg)
Intuitive Surgical Inc (ISRG US): Increased reliance on robotic healthcare systems
- BUY Entry – 544 Target – 600 Stop Loss – 516
- Intuitive Surgical, Inc. design, manufactures, and markets surgical systems. The Company offers endoscopes, endoscopic retractors and disectors, scissors, scalpels, forceps, needle holders, electrocautery, ultrasonic cutters, and accessories during surgical procedures. Intuitive Surgical operates worldwide.
- Global leader in robotic surgery systems. The company’s core product, the da Vinci Surgical System, is widely utilized in fields such as urology, gynecology, and general surgery, with a global installed base of over 8,200 systems. The company employs a “razor-and-blade” business model, generating stable recurring revenue not only through the sale of robotic systems but also from consumables, surgical services, and maintenance fees.
- Broad market growth prospects. The current total addressable market (TAM) for soft tissue surgeries stands at 6 million, with the company holding approximately 30% market share. The company estimates the global TAM to be 20 million, presenting significant room for market share expansion. Sales of the da Vinci system continue to grow rapidly, with 379 systems sold in the first three quarters of FY2024, representing a 22% year-on-year increase. The company expects its full-year 2024 revenue growth to reach 14.8%, surpassing the robotic surgery industry average of 14.5% and marking the highest growth rate among its peers.
- 3Q24 results. Intuitive Surgical’s revenue increased by 17% to US$2.04bn in 3Q24, compared to US$1.74bn in 3Q23. The Company grew its da Vinci surgical system installed base to 9,539 systems as of 30 September 2024, an increase of 15% compared with 8,285 as of the end of 3Q23 and worldwide da Vinci procedures grew approximately 18% YoY. The company’s non-GAAP net income attributable to Intuitive was US$669mn, or US$1.84 per diluted share, compared with US$524mn, or US$1.46 per diluted share, in 3Q23.
- Market consensus.
(Source: Bloomberg)
GE Healthcare Technologies Inc (GEHC US): Positive health technology outlook
- RE-ITERATE BUY Entry – 86 Target – 100 Stop Loss – 79
- GE HealthCare Technologies Inc. provides medical technology, pharmaceutical diagnostics, and digital solutions. The Company offers imaging, ultrasound, maternal, ventilator, and patient monitoring equipment, as well as performance management, cybersecurity, technical training, site planning, integrated asset optimization, and clinical network solutions.
- Robotics rising in popularity. Major technological firms are targeting the robotics sector amid growing demand for smart facilities and automated manufacturing capabilities. The robotics sector is gaining traction as major technology firms like Nvidia and Samsung unveiled their robotics strategies alongside the display of robots from other firms were showcased at CES 2025. In healthcare, companies such as GE HealthCare are leveraging robotics and AI to revolutionize the industry with products such as the Allia IGS 7 and Vscan Air SL. Future healthcare innovations are expected to enhance surgical precision, support patient care, and streamline laboratory tasks. As robotics continue to advance, increased autonomy will allow healthcare workers to focus more on direct patient care, reducing risks and improving overall efficiency.
- Newfound reliance on AI. GE Healthcare is utilizing AI to address critical challenges in healthcare, such as data overload and operational inefficiencies. At the recent RSNA 2024, GE HealthCare announced the FDA submission of CleaRecon DL, an AI-powered tool to enhance cone-beam computed tomography (CBCT) imaging by reducing streaks and improving clarity. Designed for Allia IGS Systems, the technology supports better clinical outcomes and greater CBCT adoption in minimally invasive procedures. The company also introduced OnWatch Predict, a predictive monitoring system for interventional equipment to forecast failures and reduce downtime. These innovations aim to advance imaging accuracy and operational efficiency in healthcare settings, which aim to improve efficiency, enhance diagnostic accuracy, and expand access to quality healthcare by streamlining workflows, automating tasks, and enabling more informed decision-making.
- Advancements in remote patient monitoring. The emergence of 5G and beyond technologies, with their high-speed data transmission, low latency, and robust connectivity, is revolutionizing remote patient monitoring. This enables early diagnosis and personalized care, particularly for aging populations as well as those with underlying health conditions. GE HealthCare leverages this technology with virtual care-at-home solutions, integrating patient monitors, wireless devices, and IT workflows under its Clinical Information Logistics system. This empowers caregivers with real-time clinical intelligence, leading to improved patient outcomes and efficient monitoring outside of hospital settings. As the global population ages and these technologies become more accessible, this segment holds significant potential for driving future growth in GE Healthcare’s sales.
- 3Q24 results. The company’s revenue increased by 1% to US$4.86bn in 3Q24, compared to US$4.82bn in 3Q23. The company’s net income rose 25% YoY to US$470mn in 3Q24. The company’s diluted earnings per share rose to US$1.02 in 3Q24, compared to US$0.83 in 3Q23. The company’s adjusted earnings per share rose to US$1.14 in 3Q24, compared to US$0.99 in 3Q23.
- Market consensus.
(Source: Bloomberg)
Trading Dashboard Update: Add Centurion Corp (CENT SP) at S$0.98, Lenovo Group Ltd (992 HK) at HK$9.7 and GE Healthcare Technologies Inc (GEHC US) at US$86. Cut loss on Bumitama Agri Ltd. (BAL SP) at S$0.83.
