Report Summary

• ISDN Holdings Ltd reported strong growth with 9M25 revenue rising 22% year-on-year, mainly driven by construction revenue from its hydropower plants and ongoing growth in its industrial automation segment.
• Management remains optimistic about the outlook for FY25-27, expecting earnings growth to resume as new hydropower plants increase capacity and recurring income, while expanding technology offerings and market reach across Asia.
• Target price is maintained at S\$0.44, with an “Add” rating, reflecting expectations of continued recovery and growth, though downside risks include weaker global demand and economic uncertainties.
• The company’s mini-hydropower projects support ESG goals by providing clean energy in Indonesia, while rising wage costs and operational risks from a large number of subsidiaries remain key considerations.
• Financial forecasts show stable revenue growth, improving net profit, and increasing recurring income from hydropower, with the company positioned to benefit from long-term automation and clean energy trends.