$ISDN(I07.SI) 5 Reasons to look forward to in 2H 2023 and beyond

 

1) China' s commitment to meet its 5% GDP target. As a centralised government, they have much control over the components of GDP. This may pose a narrative amongst naysayers that the figures are unreliable. However the growth of China over the past decade is undeniable if one has been to China. Even without going into China, we can see an increase in revenue of international companies relating to Chinese spending. One of the key focus of third term Xi is to bring the economy up again in post covid world. The whole world is undergoing recession (negative consecutive quarters of GDP) and inflationary problem, which crippled the monetary policies that could be effective. By increasing the interest rates, central bank will help cure the inflation problem, but risk crushing demand. By reducing the interest rates to boost demand to prevent recession, central bank will risk inflation. However in China, they still have GDP growth and healthy inflationary environment (last hit was < 1%). This would mean that China Central Bank can have monetary measures and flexibilities to boost its economy further.

 

2) China' s appointment of Pan Gong Sheng as head of Central bank (wef 1 July). https://www.channelnewsasia.com/asia/china-forex-regulator-pan-gongsheng-named-central-bank-party-boss-3599591

This guy is good, with the experience to do it. With this, we likely could see a stop to RMB depreciation due to lower relative interest rates. With RMB bottoming / strengthening in 2H, ISDN stands to benefit.

 

3) Hydro power plants. The commercialization of 3 hydroplants will bring an estimated earnings of $5-6M full year. This is a rich, recurring, recession & demand proof earnings that will not only generate cashflow, but opening up opportunities for spin offs, listings, or selling of assets. If we are to study similar listcos in Indonesia, the companies are listed at 25-35 earnings multiple.

 

4) Future of hydroplants. The commercialization of 3 hydroplants make ISDN a sponsor and developer in Indonesia. This could mean that the development of the rest of concessions given to ISDN can be accelerated. We can expect to see more hydroplants COD in 2025 and beyond. This will further boost its ROE.

 

5) ISDN Software & Industry 4.0. This is a sleeping giant ready to wake up. China is focused on advanced manufacturing and " real" economy, where technology and innovation are in their scope. Unlike other countries where financial innovation and manipulation are their focus, China choose to focus on real tangible capabilities, especially in advanced manufacturing. This will greatly improve the margin and scalability. ISDN software, with its giant western technology partners, is able to find its way into the Chinese market few handful western powerhouse could. This includes customizations according to the needs of clients, bespoke analytics, and AI capabilities to do recommendations.

 

Quoting Keith from ISDN " ISDN doesn' t seek to deliver to the market a standard product platform for Industry 4.0. It' s almost the opposite of that. ISDN has assembled, over 30 years, a very broad range of technologies and capabilities to deliver what we call the full stack of Industry 4.0 and that starts at the very bottom -- from motion control components that move the fingers, arms of manufacturing machines all the way to the PLC and the control software that controls the move motion intelligently and then popping up from that the software that coordinates machines on the line, the software that orchestrates lines in a factory, and then the communications &ndash wireless, wired-- that run between robots, between components inside a machinery, and then sitting above all of that manufacturing execution systems the supply chain, the IOT connectivity. That' s an enormous stack of technology that doesn' t spring into existence overnight. The capabilities have to be built customer by customer, engineer by engineer, over many years and the proposition for ISDN is not that we have a single platform to deliver. There are vendors who provide large-scale technology platforms --   we recognize foremost that customers in China and Asia who are adopting Industry 4.0 do not want to buy a gigantic   platform that looks like a Swiss army knife that can do lots of things. They generally prefer platforms that are very tailored to the specific business because a manufacturer of solar panels is going to be quite different from an advanced transportation train signal control system and that' s going to be different from an industrial network that goes up into satellites as well as down on the ground in the field."

 

With these few pointers, long term investors who know the business and management can take comfort in the tailwind of both china and Indonesia' s renewable energy future, and ignore short term fluctuations.

$ISDN(I07.SI) 5 Reasons to look forward to in 2H 2023 and beyond

 

1) China' s commitment to meet its 5% GDP target. As a centralised government, they have much control over the components of GDP. This may pose a narrative amongst naysayers that the figures are unreliable. However the growth of China over the past decade is undeniable if one has been to China. Even without going into China, we can see an increase in revenue of international companies relating to Chinese spending. One of the key focus of third term Xi is to bring the economy up again in post covid world. The whole world is undergoing recession (negative consecutive quarters of GDP) and inflationary problem, which crippled the monetary policies that could be effective. By increasing the interest rates, central bank will help cure the inflation problem, but risk crushing demand. By reducing the interest rates to boost demand to prevent recession, central bank will risk inflation. However in China, they still have GDP growth and healthy inflationary environment (last hit was < 1%). This would mean that China Central Bank can have monetary measures and flexibilities to boost its economy further.

 

2) China' s appointment of Pan Gong Sheng as head of Central bank (wef 1 July). https://www.channelnewsasia.com/asia/china-forex-regulator-pan-gongsheng-named-central-bank-party-boss-3599591

This guy is good, with the experience to do it. With this, we likely could see a stop to RMB depreciation due to lower relative interest rates. With RMB bottoming / strengthening in 2H, ISDN stands to benefit.

 

3) Hydro power plants. The commercialization of 3 hydroplants will bring an estimated earnings of $5-6M full year. This is a rich, recurring, recession & demand proof earnings that will not only generate cashflow, but opening up opportunities for spin offs, listings, or selling of assets. If we are to study similar listcos in Indonesia, the companies are listed at 25-35 earnings multiple.

 

4) Future of hydroplants. The commercialization of 3 hydroplants make ISDN a sponsor and developer in Indonesia. This could mean that the development of the rest of concessions given to ISDN can be accelerated. We can expect to see more hydroplants COD in 2025 and beyond. This will further boost its ROE.

 

5) ISDN Software & Industry 4.0. This is a sleeping giant ready to wake up. China is focused on advanced manufacturing and " real" economy, where technology and innovation are in their scope. Unlike other countries where financial innovation and manipulation are their focus, China choose to focus on real tangible capabilities, especially in advanced manufacturing. This will greatly improve the margin and scalability. ISDN software, with its giant western technology partners, is able to find its way into the Chinese market few handful western powerhouse could. This includes customizations according to the needs of clients, bespoke analytics, and AI capabilities to do recommendations.

 

Quoting Keith from ISDN " ISDN doesn' t seek to deliver to the market a standard product platform for Industry 4.0. It' s almost the opposite of that. ISDN has assembled, over 30 years, a very broad range of technologies and capabilities to deliver what we call the full stack of Industry 4.0 and that starts at the very bottom -- from motion control components that move the fingers, arms of manufacturing machines all the way to the PLC and the control software that controls the move motion intelligently and then popping up from that the software that coordinates machines on the line, the software that orchestrates lines in a factory, and then the communications &ndash wireless, wired-- that run between robots, between components inside a machinery, and then sitting above all of that manufacturing execution systems the supply chain, the IOT connectivity. That' s an enormous stack of technology that doesn' t spring into existence overnight. The capabilities have to be built customer by customer, engineer by engineer, over many years and the proposition for ISDN is not that we have a single platform to deliver. There are vendors who provide large-scale technology platforms --   we recognize foremost that customers in China and Asia who are adopting Industry 4.0 do not want to buy a gigantic   platform that looks like a Swiss army knife that can do lots of things. They generally prefer platforms that are very tailored to the specific business because a manufacturer of solar panels is going to be quite different from an advanced transportation train signal control system and that' s going to be different from an industrial network that goes up into satellites as well as down on the ground in the field."

 

With these few pointers, long term investors who know the business and management can take comfort in the tailwind of both china and Indonesia' s renewable energy future, and ignore short term fluctuations.

$ISDN(I07.SI) 5 Reasons to look forward to in 2H 2023 and beyond

 

1) China' s commitment to meet its 5% GDP target. As a centralised government, they have much control over the components of GDP. This may pose a narrative amongst naysayers that the figures are unreliable. However the growth of China over the past decade is undeniable if one has been to China. Even without going into China, we can see an increase in revenue of international companies relating to Chinese spending. One of the key focus of third term Xi is to bring the economy up again in post covid world. The whole world is undergoing recession (negative consecutive quarters of GDP) and inflationary problem, which crippled the monetary policies that could be effective. By increasing the interest rates, central bank will help cure the inflation problem, but risk crushing demand. By reducing the interest rates to boost demand to prevent recession, central bank will risk inflation. However in China, they still have GDP growth and healthy inflationary environment (last hit was < 1%). This would mean that China Central Bank can have monetary measures and flexibilities to boost its economy further.

 

2) China' s appointment of Pan Gong Sheng as head of Central bank (wef 1 July). https://www.channelnewsasia.com/asia/china-forex-regulator-pan-gongsheng-named-central-bank-party-boss-3599591

This guy is good, with the experience to do it. With this, we likely could see a stop to RMB depreciation due to lower relative interest rates. With RMB bottoming / strengthening in 2H, ISDN stands to benefit.

 

3) Hydro power plants. The commercialization of 3 hydroplants will bring an estimated earnings of $5-6M full year. This is a rich, recurring, recession & demand proof earnings that will not only generate cashflow, but opening up opportunities for spin offs, listings, or selling of assets. If we are to study similar listcos in Indonesia, the companies are listed at 25-35 earnings multiple.

 

4) Future of hydroplants. The commercialization of 3 hydroplants make ISDN a sponsor and developer in Indonesia. This could mean that the development of the rest of concessions given to ISDN can be accelerated. We can expect to see more hydroplants COD in 2025 and beyond. This will further boost its ROE.

 

5) ISDN Software & Industry 4.0. This is a sleeping giant ready to wake up. China is focused on advanced manufacturing and " real" economy, where technology and innovation are in their scope. Unlike other countries where financial innovation and manipulation are their focus, China choose to focus on real tangible capabilities, especially in advanced manufacturing. This will greatly improve the margin and scalability. ISDN software, with its giant western technology partners, is able to find its way into the Chinese market few handful western powerhouse could. This includes customizations according to the needs of clients, bespoke analytics, and AI capabilities to do recommendations.

 

Quoting Keith from ISDN " ISDN doesn' t seek to deliver to the market a standard product platform for Industry 4.0. It' s almost the opposite of that. ISDN has assembled, over 30 years, a very broad range of technologies and capabilities to deliver what we call the full stack of Industry 4.0 and that starts at the very bottom -- from motion control components that move the fingers, arms of manufacturing machines all the way to the PLC and the control software that controls the move motion intelligently and then popping up from that the software that coordinates machines on the line, the software that orchestrates lines in a factory, and then the communications &ndash wireless, wired-- that run between robots, between components inside a machinery, and then sitting above all of that manufacturing execution systems the supply chain, the IOT connectivity. That' s an enormous stack of technology that doesn' t spring into existence overnight. The capabilities have to be built customer by customer, engineer by engineer, over many years and the proposition for ISDN is not that we have a single platform to deliver. There are vendors who provide large-scale technology platforms --   we recognize foremost that customers in China and Asia who are adopting Industry 4.0 do not want to buy a gigantic   platform that looks like a Swiss army knife that can do lots of things. They generally prefer platforms that are very tailored to the specific business because a manufacturer of solar panels is going to be quite different from an advanced transportation train signal control system and that' s going to be different from an industrial network that goes up into satellites as well as down on the ground in the field."

 

With these few pointers, long term investors who know the business and management can take comfort in the tailwind of both china and Indonesia' s renewable energy future, and ignore short term fluctuations.

$ISDN(I07.SI) 5 Reasons to look forward to in 2H 2023 and beyond

 

1) China' s commitment to meet its 5% GDP target. As a centralised government, they have much control over the components of GDP. This may pose a narrative amongst naysayers that the figures are unreliable. However the growth of China over the past decade is undeniable if one has been to China. Even without going into China, we can see an increase in revenue of international companies relating to Chinese spending. One of the key focus of third term Xi is to bring the economy up again in post covid world. The whole world is undergoing recession (negative consecutive quarters of GDP) and inflationary problem, which crippled the monetary policies that could be effective. By increasing the interest rates, central bank will help cure the inflation problem, but risk crushing demand. By reducing the interest rates to boost demand to prevent recession, central bank will risk inflation. However in China, they still have GDP growth and healthy inflationary environment (last hit was < 1%). This would mean that China Central Bank can have monetary measures and flexibilities to boost its economy further.

 

2) China' s appointment of Pan Gong Sheng as head of Central bank (wef 1 July). https://www.channelnewsasia.com/asia/china-forex-regulator-pan-gongsheng-named-central-bank-party-boss-3599591

This guy is good, with the experience to do it. With this, we likely could see a stop to RMB depreciation due to lower relative interest rates. With RMB bottoming / strengthening in 2H, ISDN stands to benefit.

 

3) Hydro power plants. The commercialization of 3 hydroplants will bring an estimated earnings of $5-6M full year. This is a rich, recurring, recession & demand proof earnings that will not only generate cashflow, but opening up opportunities for spin offs, listings, or selling of assets. If we are to study similar listcos in Indonesia, the companies are listed at 25-35 earnings multiple.

 

4) Future of hydroplants. The commercialization of 3 hydroplants make ISDN a sponsor and developer in Indonesia. This could mean that the development of the rest of concessions given to ISDN can be accelerated. We can expect to see more hydroplants COD in 2025 and beyond. This will further boost its ROE.

 

5) ISDN Software & Industry 4.0. This is a sleeping giant ready to wake up. China is focused on advanced manufacturing and " real" economy, where technology and innovation are in their scope. Unlike other countries where financial innovation and manipulation are their focus, China choose to focus on real tangible capabilities, especially in advanced manufacturing. This will greatly improve the margin and scalability. ISDN software, with its giant western technology partners, is able to find its way into the Chinese market few handful western powerhouse could. This includes customizations according to the needs of clients, bespoke analytics, and AI capabilities to do recommendations.

 

Quoting Keith from ISDN " ISDN doesn' t seek to deliver to the market a standard product platform for Industry 4.0. It' s almost the opposite of that. ISDN has assembled, over 30 years, a very broad range of technologies and capabilities to deliver what we call the full stack of Industry 4.0 and that starts at the very bottom -- from motion control components that move the fingers, arms of manufacturing machines all the way to the PLC and the control software that controls the move motion intelligently and then popping up from that the software that coordinates machines on the line, the software that orchestrates lines in a factory, and then the communications &ndash wireless, wired-- that run between robots, between components inside a machinery, and then sitting above all of that manufacturing execution systems the supply chain, the IOT connectivity. That' s an enormous stack of technology that doesn' t spring into existence overnight. The capabilities have to be built customer by customer, engineer by engineer, over many years and the proposition for ISDN is not that we have a single platform to deliver. There are vendors who provide large-scale technology platforms --   we recognize foremost that customers in China and Asia who are adopting Industry 4.0 do not want to buy a gigantic   platform that looks like a Swiss army knife that can do lots of things. They generally prefer platforms that are very tailored to the specific business because a manufacturer of solar panels is going to be quite different from an advanced transportation train signal control system and that' s going to be different from an industrial network that goes up into satellites as well as down on the ground in the field."

 

With these few pointers, long term investors who know the business and management can take comfort in the tailwind of both china and Indonesia' s renewable energy future, and ignore short term fluctuations.