ISOTeam (ISO SP, 5WF) -

A defensive market leader - Cheaper, faster, better

(BUY/Target: S$0.55)

We initiated coverage on ISO with a BUY and target price of S$0.55, based on peers' average PEG of 0.2x. ISO is a local market leader in the upgrading and maintenance of buildings and facilities landscape. Based on contract wins awarded, ISO is estimated to have a market share of 20% and 40% for its Repairs & Redecoration (R&R) and Addition & Alteration segments respectively. The defensive R&R sector, which is regulated by the authorities, constitutes about 50% of ISO's bottom line. In the last three years, more than 70% of ISO's revenue comes from repeat sales from major customers. With more buildings to support a larger Singapore and a cash war chest, ISO is embarking on its next phase of growth.

Technically, the next level to look at could be S$0.44 while any retracement for now should not be below S$0.295.

Kori Holdings (KHLL SP, 5VC) -

Fund-raising reinforces growth story

(BUY/Target: S$0.525)

Kori recently proposed the issuance of a 5% S$5m convertible bond to Keong Hong. This fund-raising reinforces the company's growth story as management seeks to expand its operations. The tie-up with Keong Hong is also in line with Kori's plans to explore the private market as it taps on Keong Hong's networks in the private sector. Keong Hong is a main contractor whose clientele include major developers, like Keppel Land. Kori's compatible structural steel and tunneling businesses continue to position it as an ideal partner for main contractors of the MRT Thomson Line. 

Maintain BUY and target price of S$0.525, based on 4.9x FY14F PE. Technically, we prefer the stock to be well supported above S$0.45 for it to test S$0.55.

Ying Li Intl' Real Estate (YINGLI SP, 5DM) -

Growth trajectory in Chongqing still intact

(BUY/Target: S$0.64)

The Chinese government remains committed to develop Chongqing into an important economic zone in inner China. While there are concerns over China's slowing growth, the city remains on a growth trajectory. All economic indicators bode well for the demand for Ying Li's commercial and office properties. Ying Li has collected close to Rmb1b in pre-sales from Ying Li International Plaza and the retail mall has also secured 64% of contracted leases. The SSE Property Index has risen 21% since August. Investors have remained bullish amid no news of further property tightening measures. Without this regulatory headwind, we believe the discount between share price and RNAV of Chinese developers should narrow. 

Maintain BUY and target price of S$0.64, pegged at a 23.5% discount to our RNAV/share. Technically, the stock appears to be well supported near S$0.385 and may break above S$0.44 to retest S$0.52. (Read Report)