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Crazy today traded volume only 400 share and it is 100% short selling.
tccroy ( Date: 03-Jun-2025 17:38) Posted:
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Today already touched 30 and bottomed out already, rebound is on its way.
10 in 10 with ISDN Holdings - Positioned for Long-Term Growth with Strategic Expansion and Diversification
10 Questions for ISDN Holdings
1. What is ISDN&rsquo s business about and what are some of its key business segments?
- ISDN operates in two primary business segments: Industrial Automation (&ldquo IA&rdquo ) and Renewable Energy (&ldquo RE&rdquo ).
- Established in 1986, IA is ISDN&rsquo s core business and contributes around 94% of the Group&rsquo s revenue, with the PRC contributing almost 71% to the IA revenue.
- Under the IA segment, the Group offers a full range of advanced automation solutions and services, from precision components and engineering services to full machine and cloud solutions. Our four core pillars&mdash Motion Control, Precision Manufacturing, System Solutions, and Software Solutions&mdash allow us to deliver comprehensive, high-performance industrial automation solutions.
- Our Motion Control offerings provide end-to-end services, from design to installation, commissioning, and after-sales support, backed by strategic partnerships with industry leaders like Maxon Motor, Yaskawa, Renishaw, Harmonic Drive and many world-renowned manufacturers. Our Precision Manufacturing capabilities enable the production of sophisticated industrial components for high-tech sectors such as automation, aerospace, and medical, ensuring superior quality and precision. Beyond manufacturing, our System Solutions integrate cutting-edge technologies to optimise operations and accelerate intelligent transformation across industries. Complementing these pillars, our most recent addition of Software Solutions provides edge-to-cloud integration, enhancing digitalisation, efficiency, and innovation while seamlessly bridging hardware and software for advanced industrial applications and providing access to powerful analytics.
- ISDN entered the RE business in 2013, focusing on mini-hydropower projects in Indonesia. Having navigated a long journey of construction and commercialisation, the Group currently operates three hydropower plants with a total capacity of 24.6MW. the Group is also constructing two additional hydropower plants.
2. Can you share more about the reasons for the decline in revenue and profitability between FY2021 and FY2023, and what the group is doing to improve things?
- FY2021 and FY2022 were characterised by a broad-based downturn in cyclical sectors as inventory digestion took precedence and orders were pushed back. The Group was impacted by the global downcycle and weakness in the electronics and semiconductor industry. A majority of the revenue impact was driven by a broad-based slowdown in our key market, China.
- However, the Group continued to invest through the downcycle and remained committed to building strategic capabilities for long-term growth. As a result, ISDN gained market share in its core markets during FY2023.
- In FY2024, the Group achieved broad-based growth across business units and regions, underscoring the effectiveness of our strategic initiatives. In China, the IA business grew 4.0% year-on-year (yoy) in 2H2024, while in Southeast Asia, IA revenue increased 3.1% yoy. With China&rsquo s manufacturing sector rebounding, persistent labour shortages, and Southeast Asia being a key beneficiary of the ongoing global supply chain reshuffling towards a &ldquo China+1&rdquo model, the Group is well-positioned to capitalize on emerging opportunities and drive long-term sustainable growth.
3. Among ISDN&rsquo s four business segments, revenue contribution for renewable energy has more than doubled on year as of 1H2024, but other segments have remained fairly constant. What strategies does the group have to ensure continued growth across its operating segments?
- The significant growth in RE revenue in 1H2024 was driven by the successful commercialisation of all three mini-hydropower plants. FY2024 was the first full year of contribution from the three mini-hydropower plants. This strong performance highlights the benefits of our strategic diversification, as RE provides a recurring and stable income source, complementing the cyclical IA segment.
- As mentioned previously, the Group has invested strategically to strengthen core capabilities, expand market share, and positioning ourselves for recovery. While we did observe early signs of turnaround in our key target markets in early 2025, uncertainties in the market have increased since the announcement of tariffs by US President Donald Trump. Although we do not foresee any material impact as of now due to our &ldquo Asia-for-Asia&rdquo strategy, we are continuously monitoring the situation and will evaluate mitigation strategies accordingly.
4. Does ISDN have any fixed dividend policy?
- Yes, our dividend policy dictates that 25% of the net profit attributable to shareholders will be distributed as dividends. This policy has been consistently upheld for many years, even during the industry downcycle, reflecting our commitment to delivering stable returns to shareholders.
5. Please share more about inorganic growth opportunities, such as acquisitions or partnerships that ISDN has undertaken and how these have benefited the Group.
- ISDN actively pursues M& A and partnership opportunities that create synergies and strengthen our core capabilities. In the past two years, we have made several strategic investments and partnerships to expand our expertise and market presence:
- Set up Novapeak, expanding our capabilities in AI-powered drone inspection for buildings.
- Set up Servo Technology Sdn Bhd, bolstering our competitiveness in Malaysia&rsquo s IA market, especially in the semiconductor sector.
- Invested in FUJI Master Engineering, further enhancing our capability in custom automation, test solutions, and Industry 4.0 manufacturing.
- Increased stake in IDI Laser, providing advanced laser solutions for emerging semiconductor applications.
- Exclusive distribution agreement with Dafang AI Pte. Ltd, bringing the only 3-in-1 construction robot to the market, approved for adoption by HDB in Singapore.
- Our M& A and partnership strategy aligns with ISDN&rsquo s four key pillars in the IA segment, allowing us to proactively adapt to industry shifts and strengthen our competitive edge.
6. What are ISDN&rsquo s key advantages over other competitors in the industry?
- ISDN leverages over 30 years of expertise to deliver a full stack of IA solutions, from hardware to software and from components to cloud solutions, providing customers with comprehensive, tailored support.
- Beyond technology, ISDN is present across various geographical regions. With a strong presence across China and Southeast Asia, including key growth markets like Malaysia and Taiwan, the Group is well-positioned to capture opportunities from the ongoing supply chain reshuffling and the region&rsquo s growing demand for high-tech manufacturing solutions.
- Another key differentiator is ISDN&rsquo s resilient business model. By strengthening our core capabilities even during industry downturns, we have built a solid foundation for long-term, sustainable growth. In addition to IA, our hydropower business generates stable, recurring revenue, balancing cyclical fluctuations and providing greater financial resilience.
- With a strong market presence, advanced technological capabilities, and a balanced revenue mix, ISDN is uniquely positioned to deliver consistent growth and create lasting value for stakeholders.
7. Are there any future developments that investors should keep an eye out for?
- ISDN is poised for a new phase of growth, driven by a broader market recovery, strategic expansion, structural growth drivers, and a resilient, well-balanced revenue stream.
- Establishing presence in high growth geographic markets remains a key priority, particularly in Malaysia and Taiwan, two high-potential markets for IA and semiconductor manufacturing. With a favourable policy environment and increasing investments under the " China+1" supply chain shift, ISDN has established new facilities in these key semiconductor hubs to enhance market access and capture emerging opportunities.
- Beyond automation, our hydropower business continues to grow as a stable revenue driver. With three mini hydropower plants generating recurring income and Lau Biang 2 and 3 scheduled for completion in early 2026, the RE segment strengthens ISDN&rsquo s ability to balance cyclical and non-cyclical revenue streams, ensuring long-term resilience.
- Looking ahead, ISDN&rsquo s commitment to advancing our technological capabilities and expanding in strategic industries aligns with secular long-term growth trends in technology and global industry shifts, reinforcing its position for sustained value creation.
8. Given that a significant portion of ISDN&rsquo s revenue is from China and the Group has operations in several countries, how does the Group manage currency risks?
- ISDN operates across multiple geographies, with China being a key revenue contributor. To mitigate currency risks, the Group adopts a regionalised business model that aligns revenue and cost structures within each operating market. This natural hedge helps reduce exposure to currency fluctuations.
- In addition, we aim to book the rate when exchange rates are favourable, helping to reduce foreign exchange losses. We also shorten the conversion time frame to limit currency risk. For instance, USD payments received and converted into IDR are typically converted back to USD within 2-3 days, helping to mitigate the impact of exchange rate volatility.
9. Could you share some of the key ESG factors that are material to ISDN and how that can create long-term value for your shareholders?
- ISDN considers ESG factors an important part of our operations and business strategy. Outside of China, our activities mainly involve sales, support, and application integration, which have low energy consumption and minimal environmental impact. In China, we have taken steps to improve energy efficiency, including installing a 1 MW solar power system on our rooftops to support our own electricity needs.
- We are also developing two more hydropower plants of 10 MW each and operating three hydropower plants totalling 24.6 MW in Indonesia and continuing to expand our hydropower business. Hydropower is a sustainable and renewable energy source that helps reduce carbon footprint and global warming.
10. What is ISDN&rsquo s value proposition to its shareholders and potential investors? What do you think investors have overlooked?
- ISDN&rsquo s is prepared for long-term value creation given its strong market positioning, strategic expansion, and innovation-driven approach. As a full-stack IA provider, ISDN integrates AI, IoT, and motion control to support Asia&rsquo s shift towards smart manufacturing.
- China remains ISDN&rsquo s core market, where demographic shifts, rising labour costs, and increasing trade tensions are accelerating the push for automation and self-reliance in manufacturing. With the government' s focus on smart factories and industrial resilience, the demand for automation in China is expected to grow significantly. Meanwhile, ISDN&rsquo s presence in Southeast Asia, particularly Malaysia and Taiwan, strategically aligns with the " China+1" supply chain shift, positioning the Group to benefit from regional manufacturing diversification. Our Asia-for-Asia strategy further insulates the business from geopolitical risks and trade disruptions.
- As the IA segment recovers, ISDN&rsquo s RE business provides stable, recurring cash flow, ensuring financial resilience.
- With the right technology, presence in high-growth markets, and complementary businesses with proven return profiles, ISDN is well-positioned for multi-year growth
Newcomer19707016 ( Date: 23-Apr-2025 14:29) Posted:
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Bro take my advice. Leave this counter
PQTPQK ( Date: 23-Apr-2025 14:23) Posted:
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Csg downgrade Isdn to $0.28 on 22/4/25? Will it affect?
hope will move up soon ...
STRONG BUY and hold now is likely to make profit.
beng1102 ( Date: 27-Mar-2025 12:35) Posted:
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Looks very strong both price and volume and at half time the volume is already 2 times the average of the last 136 days.
beng1102 ( Date: 27-Mar-2025 11:47) Posted:
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Sell queue seems very high suddenly but likely it is fake.
tccroy ( Date: 01-Mar-2025 20:48) Posted:
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Monday gap opening
Joelton ( Date: 01-Mar-2025 15:52) Posted:
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ISDN reports earnings of $8.52 mil for FY2024 up 72.1% y-o-y following emergence from industrial downcycle
Industrial automation firm ISDN Holdings has reported earnings of $8.52 million for FY2024 ended Dec 31, 2024, up 72.1% y-o-y from the $4.95 reported in the same period a year ago.
Earnings for 2HFY2024 similarly grew 25.4% y-o-y to $3.78 million.
The group reported a revenue of $372.4 million for the full year, up 9% y-o-y. For the 2HFY2024, revenue grew 13.3% y-o-y to $197.9 million.
The group says that revenue growth was from growth in all key business units and regions. Its industrial automation business in China, which accounts for 71% of its revenue, grew 4% y-o-y in FY2024 and 1.5% in 2HFY2024.
Its Southeast Asian industrial automation business which accounts for 20% of revenue rose 3.1% y-o-y in FY2024 and 25.2% in 2HFY2024. ISDN says that this reflects a cautious emergence from the industrial downcycle in 2023 to 2024. The group continues to grow its market access by establishing new facilities in Taiwan and Malaysia.
Meanwhile, its hydropower business, which contributes about 6% of revenue, increased 233% y-o-y to $22.3 million in FY2024.
Gross margin for FY2024 declined 1.2 percentage points (ppts) due to cyclical mix shift as weakness in the semiconductor and electronics sectors shifted mix towards solutions with slightly lower margins.
The group says that it is seeing early recovery in the semiconductor and electronics segments, consistent with global trending, and remains confident that these sectors should provide solid long-term growth out of the downcycle.
The group&rsquo s gearing ratio as at Dec 31, 2024 was 34%.
Cash and cash equivalents stood at $56.1 million.
The board has proposed a final dividend of 0.47 cents per ordinary share for FY2024.
Isdn shud have listed in US. It will be appreciated and who knows Nvidia Jensen may invest like what he did to SERV robot
Have been holding ISDN for 2-3 years, since the time when it was 80+c.
Will definitely not sell at 35c, that is just ridiculous.
My cost price 20+c.
Will definitely not sell at 35c, that is just ridiculous.
My cost price 20+c.
moving today..
tccroy ( Date: 12-Feb-2025 17:28) Posted:
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The TP should be higher but due to the ground of conservatism, the TP will be higher after the robot start to generate income.
beachlover1270 ( Date: 12-Feb-2025 16:35) Posted:
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CGSI upgrades ISDN to add with TP 35 cents
The main contractors will do it if they can cut cost and speed up to complete the BTO project to avoid penalties. They suffered unexpected losses during the Circuit breaker especially when they are required to send their workers(so many) for fortnightly covid testing.
Secret_Squirrel ( Date: 19-Dec-2024 16:57) Posted:
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if this is successful, workers dormitory business might be affected.
but don' t think it will affect much as there are still other industries that needs workers.
but don' t think it will affect much as there are still other industries that needs workers.
tccroy ( Date: 17-Dec-2024 09:35) Posted:
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By using the robot, it will be win win situation for the HDB and it's main contractors as it can speed up the BTO project as well as cost savings for hiring more construction workers and foreign workers levies.
Joelton ( Date: 29-Nov-2024 10:47) Posted:
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ISDN banks on ' triangle of solutions' from motors to robots for growth
For Teo Cher Koon, ISDN Holdings I07 &rsquo managing director and president, the name of the game is offering a fully integrated solution for its clients.
Teo sees the range of solutions across a three-tier triangle. At the bottom level, ISDN collaborates with original equipment manufacturers (OEMs) to produce state-of-the-art components like servo motors, industrial computers and robots. &ldquo They are not interested in selling to the market, so we become their preferred partner because we know the market, its players and its needs,&rdquo explains Teo in an interview with The Edge Singapore.
&ldquo A layer above that, there are clients who want to have more sophisticated systems instead of just buying components from us. We can offer integrated systems such as gantries, for example, and if they want to deploy robots into a production line, we can also do that,&rdquo says Teo. &ldquo And finally, we do industrial software as well, for clients to manage their operations in a production line.&rdquo
This top-to-bottom approach especially applies to ISDN&rsquo s original business pillar: motion control, which is used in various industries to develop automated systems.
Teo says: &ldquo We supply many hardware and software solutions to help equipment makers, system integrators, end users, the Internet of Things (IoT) and factories in today&rsquo s industrial 4.0 environment. This has been our core business since ISDN was set up 37 years ago.&rdquo
In the 1HFY2024 ended June, group revenue grew 2.4% y-o-y to $174.6 million, which the company attributes to the demand in certain industries within one of its key markets, China, holding up well despite the broader downturn of the world&rsquo s second-largest economy and a key manufacturing base.
Teo, having spent years in China, believes that the slowdown experienced now varies across different industry sectors. &ldquo The construction and property segments were very badly hit by the slowdown, whereas in the advanced manufacturing and the medical industry in artificial intelligence (AI), in robotics, in energy storage, electric vehicles (EVs) are still at the growing stage. So being a motion control solution provider, being a software solution provider, system solutions provider, we can go into different markets and offer different things,&rdquo he says.
With the ability to offer a cross-industry approach, ISDN&rsquo s business within China, which makes up 76% of revenue, grew 3.2% y-o-y and 3.2% h-o-h in the period. &ldquo We&rsquo re quite flexible because of our diversification. Customers who buy motion control solutions from us may also need metal injection moulding technology and software, and these are usually provided by different people.&rdquo
Even so, ISDN&rsquo s revenue growth in 1HFY2024 was slower than anticipated. Teo attributes the softness to the semiconductor industry&rsquo s downcycle, where recovery has been uneven across sub-segments and also coming later than expected.
On the other hand, ISDN&rsquo s Southeast Asia industrial automation business, which accounts for some 19% of its total revenue, declined 9.3% y-o-y in the period.
Despite this, Teo is gearing up to tap the broader recovery as a matter of when. To this end, ISDN is investing in new facilities in Taiwan, where a vibrant electronics and manufacturing ecosystem exists, and in Penang, Malaysia, which has grown to be a key semiconductor base. According to Teo, the industry&rsquo s decoupling from China should provide an opportunity for the group to better serve OEMs in markets outside of the country.
He adds: &ldquo With the China+1 policy, moving forward we will see more and more AI chips, equipment required, production manufacturing facilities set up in other markets, and so we are positioning ourselves to cater to this demand. In Taiwan, we set up a factory to produce precision solutions for the semiconductor industry, while in Malaysia we set up an integrated outfit, and we might also set up a sales team.&rdquo
What&rsquo s next after 37 years?
Although the group&rsquo s core business remains crucial, ISDN has also ventured into new fields of growth, namely in its systems solutions and renewable energy business pillars.
In the former, Teo eyes the woes in Singapore&rsquo s construction industry as an addressable pain point. He observes that the local construction industry is lagging when it comes to adopting automation technology, as the easier way out is to continue to rely on migrant workers. However, in a bid to discourage this trend, the government has been increasing the levy on foreign workers, which would in turn, drive up costs for contractors and across the sector further. &ldquo So the government is now saying that the industry needs to automate. They have announced that half of BTO projects must involve robotics in painting operations.&rdquo
With this in mind, ISDN, through its subsidiary, Servo Dynamics, has entered into an agreement with Chinese AI design and robotics company DaFang AI to distribute 3m and 6m wall-finishing robots in Singapore.
&ldquo They&rsquo re a very promising start-up. One of the founders used to work for the New York Stock Exchange, and they also have people from Google, Tesla and Huawei. They have a lot of patents and also copyrights for their software,&rdquo says Teo.
The robots use sensors like laser range finders and inertial measurement units (IMUs) to construct a three-dimensional floor plan map before being able to perform a full range of tasks, such as wall sanding, plastering, and painting.
Teo says that just one 3m model can replace three human operators and cover 1,000 sq m per day. He adds that these robots can be deployed to finish the interiors of HDBs, factories, warehouses, classrooms and office buildings, as long as the structure is within a height of 6m.
He says: &ldquo HDB says that they will start the programme next year, so we are gearing up for that. They are putting up a tender to acquire some of these robots. We have confidence in this product because its multi-function ability seems to be rare. I think HDB is only putting the tender up for painting, but we can offer a full range.&rdquo
To make it more palatable for potential users to get on board, Teo says that the cost of the robots will be flexible, as ISDN will offer two business models: leasing and sales. &ldquo But DaFang&rsquo s founder was telling me that in China, when they first lease out the robots to customers, after a while, they all want to purchase because they recognise how this is more cost-effective.&rdquo
Robots aside, ISDN has expanded into hydropower plants in North Sumatra. The group operates three hydropower plants in Indonesia, with all up and running as of FY2023. The electricity generated was sold to Indonesian power distributor Perusahaan Listrik Negara (PLN), for a total of $6.5 million in 1HFY2024.
&ldquo Actually, the establishment of this business was a coincidence. When I looked around for industrial automation opportunities in Indonesia, there weren&rsquo t many, but I was being approached to develop power plants instead. I looked at that and thought it wasn&rsquo t a bad idea because ISDN has a lot of network connections in China,&rdquo says Teo.
He continues: &ldquo So we started to brainstorm with an engineering, procurement and construction (EPC) contractor in China, and they actually loaned us some money to develop the project.&rdquo
The robots can perform a full range of tasks, such as wall sanding, plastering and painting / Photo: ISDN
Although ISDN currently does not plan to develop its renewable energy business further, Teo says the door is open to potential development in the space.
&ldquo We have a lot of land because of the hydropower plants in Indonesia. So, if the tariff for solar energy is right, we could venture into that. But if it isn&rsquo t, then it doesn&rsquo t make any sense. There are also people approaching me to grow elephant grass, which has a carbon content of around 20% to 30%, so it&rsquo s actually good for waste-to-energy burning, and it is very easy to grow.&rdquo
Own way of doing things
As a veteran in the engineering solutions business, Teo says that his modus operandi throughout the years has been spotting talent and allowing them to mature within their own platform. &ldquo We have around 50 to 60 subsidiaries today I cannot remember exactly,&rdquo laughs Teo.
He continues: &ldquo By doing this, they can tap the know-how, the support and the network from the platform that I&rsquo ve created, and this is how we&rsquo ve structured the company. While the growth is unlimited, the limitation is instead with the one who runs the operation.&rdquo
It is also with this approach of consistent expansion that Teo remains unbothered by ISDN&rsquo s share price, which now hovers at 30 cents per share as at Nov 27, just slightly above its opening price of 25 cents 19 years ago on Nov 25, 2005.
&ldquo I&rsquo m not worried about our share price, whether it&rsquo s high or low. I won&rsquo t sell regardless, and I&rsquo m in it for the long haul. Being a public-listed entity puts us in a different league when it comes to competition. When we are offering critical machines or critical solutions, customers will listen to us because we&rsquo re not seen as a small company,&rdquo he says.