Singapore vehicle test firm Vicom's Q3 revenue drops as project nears completion

Vicom

Tue 09:43

Overview
Singapore vehicle inspection firm's Q3 revenue decreased 11% to S$36.9 mln
Net income for Q3 increased 7% to S$10.7 mln
Q3 EBITDA rose 14% to S$16.2 mln

Outlook
ERP 2.0 OBU installation project progresses toward completion by end-2026

Result Drivers
OBU INSTALLATION TAPER – Q3 revenue fell mainly as the Vehicle On-Board Unit installation project neared completion, partly offset by higher testing-business revenue
LOWER OBU SUBCONTRACTOR FEES – Operating costs fell mainly on lower OBU-related subcontractor fees, partly offset by Jalan Papan development-cost depreciation

Company press release: ID:nSN4zkhMJ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
S$36.91 mln
 
Q3 Net Income
 
S$10.73 mln
 
Q3 EBITDA
 
S$16.18 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Vicom Ltd is S$2.24, about 27.3% above its November 6 closing price of S$1.76
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)