Excerpt from CGS International report.
Report Summary
Stock: ISDN Holdings Ltd (ISDN SP)
Action: ADD (Buy)
Target Price: S\$0.96 (Previous: S\$0.44)
Current Price: S\$0.485
Upside: 97.9%
Key Highlights:
- ISDN’s core Industrial Automation (IA) business in China remains resilient, driving FY25 revenue to S\$440m (+18% yoy), ahead of expectations.
- FY25 net profit was S\$7m, down 21% yoy due to non-cash FX losses, but still 11% above forecast. Excluding FX loss, core net profit grew 26% yoy.
- Strong pipeline in renewable energy with two new Indonesian mini-hydropower plants scheduled for completion in 2026, supporting recurring revenue.
- Management raised FY26-27F EPS forecasts by 22-36% and revenue forecasts by 10%, reflecting robust demand and growth prospects.
- ISDN is valued at 24x FY27F P/E, above its 10-year average, reflecting confidence in earnings growth resumption over FY26-28F.
- Potential re-rating catalysts include higher contributions from hydropower, faster economic recovery in China, and a stronger global semiconductor cycle.
- Dividend yield is expected to increase, with improving ROE and margins over the next few years.
Implication: Investors are advised to ADD ISDN Holdings Ltd for significant upside potential, driven by resilient IA demand and renewable energy growth, with a target price of S\$0.96.
Ticker: ISDN SP
Sector: Technology Components, Singapore
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com/
