FROM MY OWN OBSERVATION CONCERNING  ISDN' S EXECUTIVE DIRECTOR TOTAL SHARES SALE

 

During the recent Q1 FY2026 business update, management sounded constructive on business conditions, particularly regarding the semiconductor/OSAT automation opportunity and April order momentum (based on attendees' feedback).

 

The market absorbed a substantial amount of selling volume over multiple trading days before and after the disclosure.

 

My interpretation:

 

Retirement motive.

 

Market overreaction resulted in a 10% drop but  some investors may see insider selling negatively, while I myself may view it as a liquidity event unrelated to fundamentals.

 

As a  long-term investor, I still have a constructive opinion on ISDN' s  future business outlook.

 

Based on information discussed recently:

 

Semiconductor automation orders appear to remain healthy.

 

Management indicated they can support expected OSAT demand.

 

New EV-related customers such as BYD have reportedly been added for certain energy-management products.

 

CGS maintained a positive stance  with an unchanged target price of 0.96 after the results update and highlighted valuation support around the S$0.65 region.

 

Since I believe those business fundamentals remain intact, then Mr. Kong' s share sale by itself does not automatically imply deterioration in earnings prospects.

 

Market perspective: 

 

The key signal now is not the disposal itself but whether:

 

Institutional investors continue accumulating,

management delivers on FY2026 earnings growth,

semiconductor automation revenue ramps as expected,

and margins improve.

 

If these factors develop positively, the market will eventually focus on earnings and cash flow rather than a one-off insider transaction.

 

From a trading perspective, the fact that ISDN recovered from the initial panic low and attracted significant volume suggests the market was willing to absorb the shares. 

 

However, sustained price appreciation will ultimately require confirmation through future results rather than interpretations of Mr. Kong' s motives and ISDN' s MD  has already professed that he is satisfied with the FY 2026 results with the Statement: 

 

ISDN " HARVEST YEAR STARTS STRONGLY FUELED BY AUTOMATION, AI, SEMICONDUCTORS AND ENERGY"

 

Due diligence warranted. 

 

NB:

 

DIP  BUYING  IS  STILL  BETTER FOR CHOICE FOR A BUY AND HOLD STRATEGY INTO  2027 IN THE INTERMEDIATE/LONG TERM

COURTESY OF CEDRIC YANG

 

 

$ISDN(I07.SI) 

 

Dear Fellow Shareholders,

 

On May 28, the market experienced a sharp, near-10% sell-down in ISDN Holdings&rsquo share price following the announcement that Mr. Kong De Yang, a senior executive team member and board member, had divested his entire equity stake. 

 

While sudden market drops can cause instinctive anxiety, a deeper look at the context reveals that this panic is entirely disconnected from ISDN&rsquo s operational reality and long-term fundamentals.

 

As long-term investors, we see this short-term volatility not as a systemic risk, but as a textbook mispricing driven by market emotion. Here is why we remain firmly committed to ISDN' s growth story.

 

1. Honoring a Pioneer: Mr. Kong&rsquo s Legacy and Contribution

 

To understand the significance of this transition, we must first look at Mr. Kong De Yang&rsquo s incredible trajectory with ISDN. Joining the group decades ago, Mr. Kong has been a foundational pioneer of the company. As the head of our China operations, his strategic vision, execution, and deep understanding of the industrial automation landscape were instrumental in driving ISDN&rsquo s massive expansion across mainland China.

 

The robust market position and extensive customer network that ISDN enjoys in China today are a direct testament to Mr. Kong&rsquo s leadership. His career has been one of immense dedication, and he leaves behind an operational engine that is profoundly stronger than he found it.

 

2. Seamless Succession: A Plan Years in the Making

 

The market&rsquo s panicked reaction implies that Mr. Kong&rsquo s departure creates a sudden leadership vacuum. This is factually incorrect. ISDN&rsquo s board has demonstrated exemplary corporate governance and foresight regarding management continuity.

 

A rigorous, structured succession plan for the China operations has been actively in motion since 2022. Over the last few years, Mr. Kong had already transitioned into a semi-retired state, handing over day-to-day operational responsibilities to a highly capable, next-generation leadership team that he helped groom. The operational handoff is not a sudden disruption it is a completed, multi-year process. The business is running smoothly under established leadership, completely insulated from a single individual' s retirement timeline.

 

3. Divestment vs. Fundamentals: The Trader&rsquo s Panic

 

When a retiring executive liquidates a position to fund their retirement or diversify their personal estate, short-term punters and momentum traders frequently misinterpret the move. Seeing a large block of shares move, they sold off in a wave of panic on May 28.

 

This is standard market noise. A divestment by a semi-retired executive for personal financial planning does not change ISDN&rsquo s core value proposition, its technological edge in precision engineering, or its alignment with the broader industrial upgrade across Asia. While short-term traders rushed for the exits, long-term shareholders who truly understand the business recognized the irrationality of the drop and used the liquidity to add to their positions.

 

4. Moving Forward with Gratitude and Conviction

 

Ultimately, we owe two distinct votes of thanks for the events of this week:

 

First, to Mr. Kong De Yang: We express our deepest gratitude for his decades of brilliant service, his immense contribution to ISDN' s China expansion, and the orderly succession he ensured before his retirement. We wish him the very best in his well-deserved next chapter.

 

Second, to the short-term traders: We thank the panic-sellers for introducing artificial volatility, which drove down the market price and allowed high-conviction, long-term investors to accumulate more shares at a significant discount.

 

ISDN Holdings remains structurally sound, excellently managed, and well-positioned for the future. 

Temporary market fluctuations do not redefine intrinsic value&mdash they merely create opportunity for those with the patience to see it.

 

Sincerely,

A Committed Long-Term Shareholder

From the information gathered  earlier from  1st quarter result business update on  26/5/2026,  the notable point was that a J.P. Morgan analyst reportedly asked management:

 

Pricing per OSAT machine (~S$200k&ndash 300k).

 

Whether ISDN could fulfill incoming orders.

 

Visibility of demand and order momentum.

 

Outlook for FY2026.

 

Those questions suggest they were probing:

 

Revenue scalability &mdash how much revenue each machine contributes.

 

Capacity constraints &mdash whether ISDN can meet demand.

 

Order-book visibility &mdash whether growth is sustainable.

 

Semiconductor exposure &mdash particularly OSAT and advanced packaging demand.

 

Those are typically the questions growth-oriented institutional analysts  normally ask when assessing whether earnings forecasts may need upgrading.

 

What is interesting is that management' s reported responses were relatively constructive:

 

April orders were described as good.

 

Management indicated they could handle the business volume.

 

Management expressed satisfaction with FY2026 prospects.

 

If those comments are accurately reflected, they generally support the bullish themes already highlighted by cgsi.com in its recent report &mdash namely semiconductor automation growth, AI-related manufacturing demand, and stronger earnings visibility.

 

At this stage, there is no public evidence that J.P. Morgan has issued:

a new target price,

a formal Buy/Neutral rating,

or earnings revisions on ISDN following the 26 May session.

 

If a J.P. Morgan note is later circulated through institutional channels or appears in financial media, that would provide a clearer indication of whether they came away more positive after management' s briefing.

 

Yet the potential outcome concerning the report only to their clients if there is one will only serve as a potential backdrop to help to underpin the potential upside in ISDN' s price in due course.

 

Anyway an interesting published report has already been released by The Edge.

 

Due diligence warranted.

 

NB: 

 

Looking forward to a higher price rise in the month of June as long as ISDN' s Daily Short Term Pivot Support at 0.63 is not violated with a close portending a Dip Buying strategy is better for choice. 

 

1st target:  1.00.

 

2nd target: 1.15.

 

 

ISDN' S QUICK 

  COMPARISON:

 

Yesterday: ~13.02M (high participation equilibrium day).

 

Today (latest you gave): ~13.25M.

 

What that tells you (important context)

 

Both days are very high volume back-to-back.

 

This isn&rsquo t a one-off spike &mdash it&rsquo s sustained positioning activity.

 

Typically means the market is:

 

Rotating positions.

 

Not exiting.

 

Building a wider value area (rather than trending cleanly).

 

Structural takeaway:

 

Two consecutive high-volume sessions around:

 

0.73 fair value zone

0.725&ndash 0.735 range:

 

👉 suggests:

 

Ongoing accumulation/distribution battle inside a defined band, not a directional breakdown or breakout yet.

 

Due diligence warranted.

ISDN' s volume expansion into the breakout above 0.70  area usually signals real positioning, not just short-term spikes.

 

This is classic transition from range &rarr breakout attempt phase. 

 

Yet with AEM Holdings Ltd., UMS Holdings Limited, and Frencken Group Limited staying firm, the sector backdrop is still supportive, so ISDN is not fighting macro pressure.

 

Dip buying continues to prevail.

 

Due diligence warranted.

Bro, thks.

 

All the best to you for  your AEM portfolio as well.

 

Cheers.

With AEM Holdings Ltd., UMS Holdings Limited, and Frencken Group Limited steady, the broader sector isn&rsquo t fighting ISDN' s upward move &mdash which increases the probability that this  ISDN' s absorption phase can extend rather than reverse immediately.

 

Due diligence warranted.

Strength in AEM Holdings Ltd., UMS Holdings Limited, and Frencken Group Limited is helping risk appetite remain firm in the sector and therefore ISDN price action is being underpinned by its peers. 

 

Due diligence warranted.

The fact that AEM Holdings Ltd., UMS Holdings Limited and Frencken Group Limited are holding steady rather than fading is important &mdash it reduces the risk of sector-led profit taking hitting ISDN immediately.

 

Due diligence is warranted.

I am equally surprised at a key man, deyang (executive director) exiting his total shares portfolios over a 3 days' period.

 

But I personally view his total shares exit as a potential retirement plan as he is already 66 years old but I can be wrong.

 

But his shares selling as an insider has only  temporarily disrupted the short term mkt direction but not its intermediate/long term uptrend aligning with ISDN' s 

" Harvest Year Starts Strongly, Fueled by Automation, AI, Semiconductors and  Energy."

 

Yet dip buying continues to prevail to date as long as its Daily Short Term Pivot Close at 0.63 is not violated with a close. 

 

Strong  support is also located at the BUY RECOMMENDATION LEVEL at its 0.65 level from a report issued by CGS ANALYST  recently after 1st quarter financial release on a solid result reported with a target price at 0.96 still remaining unchanged from previous. 

 

Due diligence warranted.

Today&rsquo s semiconductor strength led by AEMy Holdings Ltd., UMS Holdings Limited and Frencken Group Limited is probably helping ISDN stay firm despite the wall at 0.695.

 

Let' s hope ISDN can close above 0.70 with a End Monthly Closing Price.

 

Due diligence warranted.