ISDN Holdings

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#91
The recent happenings in NT / Procurri led me to ponder about NT / ISDN, and subsequently led me to watching the video on partnering with NT(at the website).

With regards to ISDN, while NT has certainly made a difference(e.g. optimizing the company structure), I think realistically there is a limit to ISDN's automation growth prospects since it seems unlikely to be able to grow organically to compete with the likes of US/European/Jap/Korean giants. It seems to be "contented" to focus on China and SE Asia(I think it's a 4-6 hr geographical flight zone or something like that). 

Despite venturing into more offerings, they don't seem to take off and to me, there seems to be a lack of focus(look at the no. of pages of subsidiaries in the AR - how effectively cld one oversee so many or is it with layers of middle mgmt - I dun know) Speaking of which, I was rather disappointed with the outcome of the SD Beijing incident - tot wld be recoverable and increase EPS - pg196 of AR2021)

So how long more is the runway in China ? What wld be the peak earnings / EPS for its automation business ? 

Then in the longer term, what is the endgame ? Controlling shareholder selling ISDN to a larger organization - given ISDN is a solutions provider collaborating with various manufacturers, does it make business sense for a single manufacturer to buy it ? Finding a successor ? What wld be a trigger / final trigger for NT to exit its stake in ISDN (esp since NT is not in the driving seat )?

Meanwhile, CIMB has lowered the target price to $0.70 upon 1Q2022 results below expectations.

This thread is also a bit quiet, hope more buddies can join in the discussion.  Big Grin

---------------------------

https://www.novotellus.com/

AR2021 :
https://links.sgx.com/FileOpen/ISDN-AR20...eID=708509

1Q2022 Results :
https://links.sgx.com/FileOpen/ISDN-1Q20...eID=720460
"- ISDN reported revenue of S$94.7 million in 1Q2022, a 3.8% decrease from S$98.4 million in 1Q2021.
- Profit attributable to equity holders increased 5.8% to reach S$6.4 million in 1Q2022, as compared to S$6.1 million in 1Q2021...."

CIMB ISDN research report 14/6/2022
https://rfs.cgs-cimb.com/api/download?fi...467bf32f58
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#92
(13-06-2022, 02:32 PM)dreamybear Wrote: The recent happenings in NT / Procurri led me to ponder about NT / ISDN, and subsequently led me to watching the video on partnering with NT(at the website).

With regards to ISDN, while NT has certainly made a difference(e.g. optimizing the company structure), I think realistically there is a limit to ISDN's automation growth prospects since it seems unlikely to be able to grow organically to compete with the likes of US/European/Jap/Korean giants. It seems to be "contented" to focus on China and SE Asia(I think it's a 4-6 hr geographical flight zone or something like that). 

Despite venturing into more offerings, they don't seem to take off and to me, there seems to be a lack of focus(look at the no. of pages of subsidiaries in the AR - how effectively cld one oversee so many or is it with layers of middle mgmt - I dun know) Speaking of which, I was rather disappointed with the outcome of the SD Beijing incident - tot wld be recoverable and increase EPS - pg196 of AR2021)

So how long more is the runway in China ? What wld be the peak earnings / EPS for its automation business ? 

Then in the longer term, what is the endgame ? Controlling shareholder selling ISDN to a larger organization - given ISDN is a solutions provider collaborating with various manufacturers, does it make business sense for a single manufacturer to buy it ? Finding a successor ? What wld be a trigger / final trigger for NT to exit its stake in ISDN (esp since NT is not in the driving seat )?

Meanwhile, CIMB has lowered the target price to $0.70 upon 1Q2022 results below expectations.

This thread is also a bit quiet, hope more buddies can join in the discussion.  Big Grin

---------------------------

https://www.novotellus.com/

AR2021 :
https://links.sgx.com/FileOpen/ISDN-AR20...eID=708509

1Q2022 Results :
https://links.sgx.com/FileOpen/ISDN-1Q20...eID=720460
"- ISDN reported revenue of S$94.7 million in 1Q2022, a 3.8% decrease from S$98.4 million in 1Q2021.
- Profit attributable to equity holders increased 5.8% to reach S$6.4 million in 1Q2022, as compared to S$6.1 million in 1Q2021...."

CIMB ISDN research report 14/6/2022
https://rfs.cgs-cimb.com/api/download?fi...467bf32f58

If you dig deeper, you will know that tech and semicon companies were affected by the on-going supply chain disruptions all over the world. ISDN is not the only company affected. Last I heard, the situation has eased. Lockdown is another culprit. Hopefully by Q3, we will see normalization of business. Order book is still strong as reported. The CN office growth and expansion plans were disrupted as well..but are still on track. 

ISDN's growth is tied to growth in Asia..which is doing/should do better than US and Europe. Besides hardware, motors and high tech devices, ISDN is going huge into software. Their  China software development team will be rolling out cloud based smartfactory and IOT solutions by end of the year. There is a huge ready market in China. The profit margin from this business is in the dd and recurring. The software aspect of the business offers customers in China end-to-end solutions from front-end devices to the cloud. ISDN will continue to market AVEVA solutions in Singapore and the rest of Asia but will promote its own developed solutions to customers in China. 

The disruptions mentioned above are a minor hiccup. Long-term growth is still intact. Completed hydro plants will commence operation soon and new ones are scheduled to start construction this year. Within the next 3 to 4 years, all 160Mwatts are expected to complete construction and be spun off.
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