ISDN Holdings - Industrial Automation Outlook Still Positive
- ISDN (SGX:I07) believes that the Asia Pacific factory automation and industrial controls market represents an opportunity of over US$60bn and could grow at CAGR of 10.87% between 2021 and 2026. We think ISDN remains keen on growth.
- In our view, the next stage of development for ISDN is to increase the contribution of software solutions in its revenue mix. As software tends to be scalable and offer better margins, we think devoting more efforts to the software side could help improve margins.
- We reiterate our ADD call on ISDN with an unchanged target price of S$0.96, which is based on 12.3x FY23F EPS. Our 12.3x target P/E multiple is 2 standard deviation above ISDN’s FY17-21 historical average forward P/E of 7.9x.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-05 2022-04-05
Previous report by CGS-CIMB:
2022-02-28 ISDN Holdings - Record Net Profit Since Listing
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