ISDN - China Reopening Beneficiary
- We hosted ISDN (SGX:I07) for a post-1Q22 business update call on Monday, 20 June 2022. The 1Q22 update was released on 10 June 2022. See ISDN's announcements.
- ISDN has 3 mini-hydropower projects in Indonesia. Of these, Sisira and Angocci (according to ISDN) have been in operation since Sep 21. However, ISDN has not been able to bill the customer for the electricity supplied from these power plants as there are certain permits required that are still outstanding, which the company is working to resolve. Management guided that its third plant (Lau Biang) does not face the permits issue affecting Sisira and Angocci. However, Lau Biang’s construction progress has been delayed by China’s recent COVID-19 lockdown.
- With its strength in the hardware part of industrial automation (via its product partners), ISDN is now looking to increase its efforts on the software side of the automation process via offering cloud solutions that provide a comprehensive view of the data that its customers are able to collect though their automation efforts. Reflecting this commitment, ISDN appointed Mr. Tay Geok Kee as its Group Chief Technology Officer on 1 Jan 2022.
- We reiterate our ADD call on ISDN and target price of S$0.70 as business activity resumes with the lifting of the COVID-19 lockdowns in China. This is based on a 10.1x P/E multiple (1 standard deviation above the Jan 17 to May 22 forw ard P/E multiple) on our FY23F EPS forecast.
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 2022-06-21 2022-06-21
Previous report by CGS-CIMB:
2022-06-14 ISDN Holdings - Impacted By China’s COVID-19 Lockdown
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