The base case is simple: compliance demand is mandatory, not cyclical.
What stands out in this initiation note:
Testing is the base: high repeat business (85%+), lab testing dominates revenue (FY24: 93.6%)
ESG is the growth layer: Singapore’s mandatory climate disclosures (from FY2025) and Malaysia’s phased rollout expand third-party assurance demand
Financials are clean: FY24 net margin 20.5%, EBITDA margin 36%, with net cash (RM 9.8m)
The report’s anchor is clear: TP S$0.44 vs last S$0.35 (~+26%).
Not a hype story — more like a regulation-backed business still priced like a simple lab.
Which Singapore stock do you like most this half-year?
Leave a comment and we’ll break down the research.[财迷]
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