ISOTeam

[Behappyalways]

Company news......not vested

https://www.theedgesingapore.com/news/re...ng-isoteam

[Shiyi]

Any particular reason that you resurface this story which was published some 11 months ago.

[Behappyalways]

Buyers beware...

[weijian]

IMHO, SIAS Research's Q&As are getting better and better. The sustainability report. which I admittedly skip most of the time, actually has value in understanding more of a company from another lens. This other lens is important in getting new insights...For example, I would assume ISOTeam's painting division is much more susceptible to WFH (work from height) incidents because it is still a very manual process (hence allowing humans to cognitively violate SOPs easier as well), compared to its construction peers.

RESPONSE TO QUESTIONS FROM THE SECURITIES INVESTORS ASSOCIATION (SINGAPORE) AND SHAREHOLDERS FOR ANNUAL GENERAL MEETING TO BE HELD ON 25 OCTOBER 2024

Separately, as shown in the sustainability report, the group had 13 reportable workrelated injuries and was fined by regulators for seven incidents. The group also reported accident frequency rates (AFR) and accident severity rates (ASR) that exceeded its own target, particularly, the reported FY2024 ASR was 89.35, more than 4 times the target of 20.

https://links.sgx.com/FileOpen/IST%20-%2...eID=822633

P.S. It is my secret desire that SIAS would evolve into Bursa's MSWG, receiving much better funding and communication channels with the Regulator....Over to the MAS Review Group!

[dzwm87]

Kudos to SIAS - this was a good catch and reflective of overall management's competency and company's culture.

Can't believe years ago, they were being marketed as the next "Vicom"

[weijian]

Kudos to SIAS - this was a good catch and reflective of overall management's competency and company's culture.

Can't believe years ago, they were being marketed as the next "Vicom"

hi dzwm87,

Due to SIAS's questioning on its safety record and culture, safety became something interesting for me to understand more - since ~10% of my portfolio is vested in Spore construction boom.

I took a look at the 2023 WSH report produced by MOM. Nothing out of the ordinary except the portion where it classified the fatal injuries by cause of injury type (attached screen pic). The top3 injury type makes up 70% of fatalities in 2023 - (1) collapse/failure of structure/equip, (2) vehicular incidents and (3) Falls from Height.

For (1) and (2), there is relatively big variation between years. So I would assume that these are driven by isolated incidents. For example, some part of a highway collapsed and a few unfortunate souls were trapped inside OR a vehicle carrying >10 construction workers met an accident and a few of them succumbed to serious injuries. But what looks remarkedly consistent over the last 7 years was actually the 7-8 deaths due to "Fall from Height". What does it imply (or maybe it doesn't imply anything)?

I personally do not know ISOTeam Mgt, nor dealt with their employees or followed the company closely over the years. So I am not sure of their competency and company's culture. But maybe they are in a handicapped situation based on the type of work they do - lotsa of manpower, "easy" for human to override the system, behavorial issues and most importantly - lethal from a height perspective.

We can only hope robot painters eventually help to save more lives, while improving the cost margin for such companies.

Workplace Safety and Health (WSH) report 2023:
https://www.mom.gov.sg/-/media/mom/docum...s-2023.pdf

[weijian]

Once upon a time, before new billionaires became new citizens, the Sporean owner of Nippon Paint Spore was astutely the richest man in Spore on the Forbes list. All thanks to HDB/Strata Mgt Act requiring a repaint of the exterior buildings no later than every 7 years and also the high humidity/rainfall of Spore providing the tailwind.

There are probably tons of contractors and subcontractors fighting for the contracts from HDB Town Councils/MCSTs. Matter of fact, anyone getting the required certification/s, able to get foreign workers (can also be subcontracted) and rent a gondola, technically could paint. But most probably get their raw materials from Nippon Paint Spore I suppose.

MINUTES OF ANNUAL GENERAL MEETING

The CEO acknowledged that labour costs has been a persistent issue in the construction industry. The CEO highlighted that the Ministry of Manpower (“MOM”) reduced the foreign worker quota from 1:7 to 1:5 for the construction industry with effect from 1 January 2024.

The CEO acknowledged that whilst the construction industry has low barriers to entry, the Board remains confident that the Company will be able to continue securing contracts with a good profit margin due to its long-standing track record and project management expertise. The Group takes pride in its ability to deliver its projects in accordance with the stipulated timeline over the past 25 years. In recent years, contracts with Town Council and the Housing Development Board (“HDB”) were tendered based on the Price Quality Management (PQM) system.

The Group intends to collaborate closely with its sub-contractors, which involves outsourcing 75% to 80% of its’ projects. The Group’s decision to invest time and effort in managing its’ sub-contractors will not only ensure project quality, but would also enable the Group to secure products and materials of higher quality, hire workers, and provide dormitories for its workforce. Collaboration with sub-contractors would also allow the Group to value-add to its sub-contractors and achieve a mutually beneficial outcome for the parties involved.

AGM 2024 MoM
https://links.sgx.com/FileOpen/ISOTeam%2...eID=824898

[madagnet]

Warning to all -- Take a look at the acquisition they made and shortly impaired a few years back..