As long as AEM daily Pivot Support Close at 8.98 is not violated its price action may have the potential to grind up higher to break above recent all time high at 11.54 as its Intermediate/Long Term Pivot Support Close at 7.10/5.85 is intact up to date.

 

Another laggard small cap peers namely ISDN will be dragged up as well by AEM coming price rise as long as its  ISDN Short Term Pivot Support Close at 0.655 is not violated which will have the potential to grind up much higher to test its overhead previous all time high resistance between 0.82 and 0.85 before a minor pull back may may surface to reset its overbought daily  technical condition and thereafter to break upwards into Blue Sky as its Intermediate/Long Term Pivot Support Uptrend  Close remain intact up to date.

 

Further ISDN' s strong solid earnings fundamentals have already aligned itself with its Intermediate/Long Term Uptrend for the next few quarters.

 

For FY 2026, ISDN Mgt has already explicitly expressed that this year is " HARVESTING YEAR" .

 

Dip Buying continues and is still to better for choice for Buy and Hold String Hand Investors to navigate Short Term Volatilities. 

 

Due diligence warranted.

ISDN today opening steadier at 0.775  playing catching up with the potential of testing previous all time high between 0.82 and 0.85.

 

Dip Buying continues to prevail. 

 

Due diligence warranted.

With AEM grinding lower this morning dragging ISDN down to touch its low breakout point of 0.73 before recovering to close at 0.765 but marginally lower  than previous days close of 0.77 even in the face of muted  Shortists'   selling of    358,000 shares compared to yesterday' s selling of 591,400.

 

As long as its Daily Pivot Support Close  of not violated at 0.645 to date, ISDN' s Daily Price Action has the potential to test its previous All Time High between 0.82 and 0.85 with the potential of breaking up into New All Time High before a profit taking round  pull back may surface due to reset its overbought technical condition.

 

Yet still for now, dip buying continues to prevail.

 

Due diligence is warranted.

What I can confirm is that ISDN reported 1H FY2026 revenue of S$253.6m and net profit of S$10.4m, with profit up more than 700% YoY. 

 

There is also a YouTube recording of the briefing titled &ldquo ISDN Holdings Breaks Records With 700% Profit Growth in 1H &hellip &rdquo . 

 

My read of the briefing on 17 August conducted by ISDN Mgt: 

 

The biggest message was that the 1H numbers weren' t just a one-off accounting rebound.

 

ISDN' s 1H FY2026 revenue reached roughly S$254m, an all-time high, while attributable net profit jumped to S$10.4m from S$1.3m, +707%. 

 

That is particularly important because FY2025 profit had been distorted by FX losses.

 

Management has consistently encouraged investors to focus on core operating profitability rather than the volatile FX revaluation of its long-dated hydropower contracts. 

 

1. Industrial automation remains the core engine.

 

This is the part, I would pay the most attention to.

 

ISDN is benefiting from several overlapping trends:

 

Semiconductor capex

AI-related manufacturing investment

robotics

factory automation

precision motion control

expansion of manufacturing capacity in Southeast Asia.

Management' s positioning is interesting because ISDN isn' t trying to become an AI software company.

 

It is supplying the physical automation/motion-control infrastructure underneath advanced manufacturing.

 

Its own materials specifically highlight applications ranging from semiconductor manufacturing to medical devices, EVs and smart factories. 

 

That makes the AI angle more credible to me than simply putting " AI" in a presentation.

 

2. Semiconductor exposure is becoming more important.

 

One of the developments, I would watch closely is IDI Dynamics.

 

In May, ISDN announced a high-speed laser marker aimed at the OSAT semiconductor assembly and testing market, with higher throughput and a smaller footprint. 

 

This fits with management' s longer-term thesis:

 

Semiconductor factories require increasingly precise motion control and automation as chip complexity rises.

 

The interesting question isn' t whether semiconductors grow &mdash it is how much of that spending actually flows into ISDN' s products and margins.

 

3. Robotics + AI is still an option on top of the core business.

 

ISDN has also been building its robotics/physical-AI ecosystem.

 

AR Robotics brought in Soradynamics and Trinity as strategic partners, giving it additional capabilities in robotics, drones and video analytics. 

 

And NovaPeak has been developing LiveInspect.AI, including its partnership with Panasonic to scale the technology globally. 

 

My interpretation is:

 

Don' t value ISDN today as an AI company.

 

Value the existing automation business, and treat AI/robotics as potential upside.

 

That' s a much more conservative way of looking at it.

 

4. Hydropower is becoming a meaningful second earnings engine.

 

The enewable energy business is increasingly important.

 

ISDN has three operational hydropower plants and has been progressing with additional plants.

 

Its FY2025 report said the next two plants were scheduled for completion in 2026, potentially increasing total power output by about 81%. 

 

This is strategically useful because it gives ISDN something the automation business doesn' t:

 

Recurring earnings/cash flow.

 

The trade-off is that hydropower projects require capital and can produce accounting/FX volatility, so I wouldn' t assume every dollar of reported profit translates immediately into free cash flow.

 

5. The 1H result is much more significant than the headline +707%.

 

This is the part, I think the market could be underappreciating.

 

Going from S$1.3m to S$10.4m creates a huge percentage increase, but the more important fact is that revenue has also reached a record level. 

 

So the investment question becomes:

 

Can ISDN sustain something close to this earnings run-rate in 2H?

 

If yes, FY2026 could look dramatically different from FY2025.

 

If 2H profit were merely similar to 1H, FY2026 attributable profit would be around S$20m+.

 

That' s a very different valuation proposition from the company investors saw in 2025.

 

And this is where the share price gets interesting.

 

ISDN was around S$0.715 on 17 August, after having risen sharply from roughly the mid-S$0.60s earlier in August. 

 

There is also an important valuation reference point:

 

SAC Capital initiated coverage with BUY and a S$0.97 target price in July. 

 

CGS had previously maintained an ADD with a S$0.96 target and recently has revised latest target to 1.05.

 

So at S$0.715, the market has already recognised some of the improvement.

 

But the interesting thing is that SAC Capital  has not yet fully re-rated its  0.97 target to a higher target which maket participants are waiting for its outcome.

 

My conclusion:

 

I' d divide the story into three layers:

 

Layer   My view:

 

Existing automation business 🟢 Strong.

 

Hydropower earnings growth 🟢 Positive.

 

AI/robotics upside 🟡 Potentially significant, but unproven. 

 

1H FY26 earnings 🟢 Very strong.

 

The critical thing I would watch now is not the 707% headline.

 

It' s whether management can demonstrate that the 1H S$10.4m profit run-rate is sustainable.

 

If 2H confirms that, I think my  minimum Fibonacci 1.236% Extension Target Target  of 1.14  becomes quite  plausible and  realistic in due course.

 

By and large, 3rd quarter earnings release can still be explosively solid as ISDN' s Management has explicitly expressed recently that FY2026 will be a " HARVESTING YEAR" .

 

As such dip buying is still better for choice as its Short Term has convincingly turned positive after recovering and closing above its Short Term Pivot Resistance of 0.73 resulting in its New Daily Pivot Support Close of 0.645  surfacing as its Intermediate/Long Term Uptrend still remains intact to date. 

 

Due diligence warranted.

TECHNICAL ANALYSIS OF ISDN AS ON 19TH AUGUST  2026

 

A) Daily Short Term Pivot Support Close at 0.645. 

 

B) End Weekly Intermediate Term Pivot Support Close at 0.54.

 

C) End Monthly Long Term Pivot Support Close at 0.47. 

 

TECHNICAL SYNOPSIS 

 

As long as ISDN' s Daily ShortTerm Pivot Close at 0.645 is not violated its Daily Price Action has the potential of grind up further to  retest  its previous all time highs between 0.82 and 0.85  with the potential of breaking above it before a minor pullback may surface to prompt a profit taking round from an overbought technical condition. 

 

Violating 0.645 till date, may portend ISDN to retest its recent carved out bottom at bottom of 0.62. 

 

Breaking below 0.62 will prompt technical selling to test downside of End Weekly Intermediate Support Close at 0.54.

 

Due diligence is warranted.

BY ROCKY TEO, UOB REMISIER

 

If you saw my post on ISDN Holdings two months ago on 1Q +767% growth, you might have had some lingering doubts. 

 

But after attending their 2Q 2026 results briefing on Monday (17/8), they have proven it again with another > 700% YOY growth report.

 

This time, you really can&rsquo t say " I Still Don' t kNow" about this company' s massive potential! 😉

 

Here is why ISDN is rapidly scaling up across Asia&rsquo s most critical tech sectors:

 

🌟 1. The Power of " Full-Stack" Solutions.

 

When asked about competitors, Managing Director & President CK Teo noted they are few and far between.

 

Unlike rivals who pick and choose partial jobs, ISDN takes on the entire project. 

 

Customers love this total-solution approach because ISDN takes full accountability.

 

⚙ ️ 2. Driving the Semiconductor Boom.

 

ISDN doesn' t just sell parts it builds cost-saving modules that upgrade existing machinery.

 

Precision Modules:

 

They produce standardized XYZ staging modules for ultra-fast semiconductor manufacturing.

 

In-House Innovation: 

 

Their proprietary high-speed laser marker saves precious floor space for OSAT (Outsourced Semiconductor Assembly and Test) firms. 

 

Their new ApexTwin machine is also speeding up semiconductor packaging.

 

💻 3. Software & Digital Twins.

 

With over 50 software engineers in their Nanjing division, ISDN customizes software to lock in clients and capture market share. They are building Digital Twins&mdash advanced virtual models used to simulate factory layouts before construction and manage real-time production.

 

🏢 4. Data Centres & Cooling

ISDN recently won a major contract providing innovative hinge and lock systems for a world-renowned data centre operator. 

 

They expect to scale up with demands by other data centres. 

 

ISDN has installed systems to monitor and control data centre parameters including temperature balancing that leads to power usage effectiveness.

 

CK Teo remarked that the company will also look into providing energy and liquid cooling for data centres. 

 

💧 5. Hydropower:

 

25 Years of Green Income.

 

Construction on their hydropower plants wraps up by the end of this year.

 

Starting after 2026, this will inject S$14 million annually in recurring, predictable revenue for the next 25 years.

 

🤖 6. High-End Robotics & 3D Printing.

 

Instead of fighting price wars in low-end robotics, ISDN is leveraging its high-performance harmonic motors to serve the high-end robot market. 

 

To scale up MIM manufacturing efficiently, they are investigating 3D printing to create high-mix, low-volume parts without wasting time on mold changes.

 

📈 The Macro Tailwinds.

 

ISDN has 50 companies operating in China.

 

Their core business are perfectly aligned with China&rsquo s 15th 5-Year Plan and national investment budgets. 

 

Similar industrial adoption accelerate across ASEAN, ISDN' s industrial automation order book has thus doubled in 1H2026.

 

This is definitely a growth story to keep on your radar.

 

Due diligence warranted.

Any break out above 0.78  for ISDN towards its closing session today with a much reduced volume traded relative to yesterday' s volume of 28 million plus shares is potentially due to Short Covering Interest with the potential of testing upside between previous all time high of 0.82 and 0.85. 

 

It' s will be clear blue sky run up when it' s breakpoint of 0.85 is penetrated convincingly.

 

Dip Buying continues to be better for choice.

 

Due diligence warranted.

After much considerations given to ISDN' s Intermediate/Long Term fundamentals 

and Technicals  over the next few years, I am going all in into ISDN with  more buys  with " ADD ONS" to my existing CASH/SRS portfolios because as a Small Cap Low Priced  Laggard Beta Stock, ISDN offers me the Better Risk-Reward Profile because of its Automation Business plus its  Long-Term Recurring Earnings expected from its Hydro Assets. 

 

As its Daily  Price Action has recovered and closed convincingly above its Daily Short Term Pivot Resistance of  0.73 resulting in its Daily  New Pivot Support Close  of 0.64 sufacing and if it pulls backs towards 0.715 level over the next few days,  I shall execute my  Buying  Strategy accordingly as its End Weekly Intermediate Term and End Monthly Long Term Technicals Uptrend remain intact at 0.54 and 0.47 respectively.

 

Due diligence warranted.

The CGS latest released ANALYST report with a revised target level of original from 0.96 to 1.05 has given me  confidence in a stronger 2H2026 of which  I would rank them in order of importance: 

 

Industrial automation demand &mdash biggest factor.

1Q2026 industrial automation revenue was up 23% YoY, with Southeast Asia +53% and China +14%. The company also said order intake continued to grow into FY2026. That gives the strongest evidence that the recovery is translating into actual orders/revenue. 

 

Semiconductor + AI/datacentre exposure.

ISDN specifically highlighted strong demand from semiconductors and industrial robots, with AI, datacentres, energy storage and advanced manufacturing supporting demand. This is important because these are secular rather than purely cyclical drivers. 

 

Hydropower contribution should step up in 2H.

Renewable-energy revenue already rose 39.3% YoY to S$6.7m in 1Q2026, helped by construction income from two new mini-hydropower plants approaching operational completion. As those plants move toward operations, the earnings contribution should become more meaningful. 

 

New technology investments are starting to commercialise.

 

The company says strategic investments in advanced technologies are producing commercial progress. 

 

The 2026 announcements around robotics/AI and semiconductor equipment add potential incremental growth beyond the traditional automation business. 

 

The 2025 exit rate was already improving.

 

2H2025 revenue grew 14.9% YoY, versus FY2025 revenue growth of 18.2% more importantly, 2H PAT rose 19.3%. That creates a stronger base going into 2026 rather than starting from a weak 2H. 

 

Geographic diversification reduces dependence on one market.

Growth is coming across China and Southeast Asia, while ISDN has been expanding its technology offering and geographical reach. 

 

My takeaway: 

 

The #1&ndash #3 factors are the real reasons to have more confidence in 2H2026. 

 

In particular, I would put automation orders + semiconductor/AI demand ahead of hydropower. The latter is a useful earnings kicker, while the automation/semiconductor recovery is the more important driver of sustainable earnings.

 

There is also an interesting external confirmation: ISDN' s analyst-reports page now lists a 20 July 2026 SAC initiation with a S$0.97 target price, following earlier reports describing automation demand as resilient/strong.

 

Better days are ahead are ahead for ISDN over the next few quarters of earnings report release as such I am fully invested with  an Intermediate/Long Term ISDN portfolio as ISDN Mgt has explicitly expressed that FY2026 is the " HARVESTING YEAR" .

 

With ISDN recovering and closing above  its Short Term Pivot Resistance  Close of 0.73 resulting in its New Daily Short Term Pivot Support Close of 0.64 portending a Dip Buyer' s Strategy to turn its Short Term Trend into positive mode as its Intermediate/Long Term Chart Uptrend Support Close is fully intact intact up to date at 0.54/0.47 respectively. 

 

My first liquidation target objective will be my minimum 1.236% Fibonacci Extension Target at 1.14 potentially to be selffulfilled by End Sept 2026. 

 

Due diligence warranted. 

INTERESTING ARTICLE FOR SERIOUS INTERMEDIATE/LONG TERM INVESTORS

 

ISDN Holdings Breaks Records With 700% Profit Growth In 1H FY2026

SGX-LISTED COMPANIES

PUBLISHED ON

 

AUGUST 14, 2026

BY

SAM ATKINSON

ISDN Holdings Limited

ISDN Holdings Limited

SPEAKER

Teo Cher Koon

 

CEO, ISDN Holdings Limited

 

Teo Cher Koon is the President, Managing Director, and Executive Director of ISDN Holdings Limited, where he has directed corporate strategy and multi-national expansion across Asia since 2004. A graduate of the National University of Singapore, his over two decades of chief executive tenure solidifies his position as a trusted industry authority with deep technical expertise in the regional industrial automation sector

 

SUMMARY

ISDN Holdings reported a record-breaking 707.2% year-on-year surge in net profit attributable to shareholders, reaching S$10.4 million in 1H2026 driven by a 19.1% revenue increase and a doubled order book

 

AT A GLANCE

WHO

Teo Cher Koon, Managing Director and President of ISDN Holdings Limited, a regional industrial automation and technology solutions provider

 

WHAT

ISDN Holdings achieved record-breaking financial performance, reporting a 707.2% year-on-year surge in net profit attributable to shareholders alongside a more than doubled forward-looking order backlog

 

WHEN

The record performance was achieved during the first half of the 2026 financial reporting period, covering January 1, 2026, through June 30, 2026

 

WHERE

Headquartered in Singapore and listed on the SGX, the group captured rapid industrial market expansion across its primary regional hubs in China, Singapore, and Vietnam

 

WHY

Surging demand for motion control within the semiconductor recovery and artificial intelligence supercycle drove top-line growth. Lower foreign exchange losses and optimized operational efficiencies further amplified bottom-line margins

 

HOW

The group expanded gross profit margins to 24.9% by scaling high-margin industrial automation throughput. Positive operating leverage successfully offset completion-related revenue declines within their Indonesian renewable energy segment

 

ISDN HOLDINGS BREAKS RECORDS WITH 707.2% PROFIT GROWTH AND A DOUBLED ORDER BOOK

ISDN Holdings Limited has signaled a structural re-rating in its corporate trajectory with a record-breaking performance for the first half of 2026. The Group achieved an all-time high revenue of S$253.6 million, underpinned by robust demand for advanced industrial solutions. This top-line momentum translated into a precise 707.2% year-on-year surge in profit attributable to shareholders, marking a definitive shift from the prior year&rsquo s recovery phase.

 

This performance illustrates ISDN&rsquo s successful transition from a traditional automation component distributor to a sophisticated high-tech partner. By positioning itself at the intersection of the semiconductor industry&rsquo s recovery and the artificial intelligence (AI) supercycle, the Group is effectively capturing high-growth tailwinds across its primary Asian markets.

 

The narrative for 1H2026 is one of scale and strategic alignment. With an order book that has more than doubled over the past year and margins showing consistent expansion, ISDN is demonstrating that its multi-year investments in specialized automation and renewable energy are reaching a critical point of recurring profitability.

 

 

ANALYZING THE MECHANICS OF POSITIVE OPERATING LEVERAGE

The defining feature of this reporting period is the massive expansion of the bottom line relative to revenue growth. While Group revenue rose by a healthy 19.1%, net profit attributable to shareholders jumped from S1.3 million to S10.4 million. This was driven by positive operating leverage, where the Group successfully scaled its throughput without a linear increase in fixed costs.

 

However, a sophisticated analysis must look beyond simple volume. A major driver of this profit explosion was a S$5.2 million decrease in net foreign exchange losses compared to 1H2025, representing a significant accounting recovery. Furthermore, gross profit margins expanded by 1.2 percentage points to 24.9%. This expansion was the result of a favorable mix shift toward higher-margin Industrial Automation solutions and the tapering of lower-margin construction revenue.

 

Financial Metric 1H2025 1H2026 Year-on-Year Change

Revenue (S$ million) 212.9 253.6 +19.1%

Gross Profit Margin (%) 23.7% 24.9% +1.2 ppt

Net Profit Attributable to Shareholders (S$ million) 1.3 10.4 +707.2%

INDUSTRIAL AUTOMATION AND THE AI SUPERCYCLE

The Industrial Automation (IA) segment remains the Group&rsquo s engine, contributing 93.9% of total revenue. Segment revenue grew 31.9% year-on-year to S$238.0 million. This growth is inextricably linked to the semiconductor and advanced electronics sectors, where ISDN&rsquo s motion control and industrial computing solutions are essential for high-precision manufacturing.

 

The most vital forward-looking metric in this segment is the doubling of the order book. This backlog indicates that demand remains broad-based and persistent, providing high visibility for revenue recognition in the coming quarters.

 

&ldquo We are seeing broad-based demand across our industrial automation business as our addressable market grows. AI and semiconductors continue to grow robustly, but our industrial automation business is also benefiting from broad and long-lived advancements in industry across many segments and geographies throughout Asia.&rdquo &mdash Mr. Teo Cher Koon, Managing Director and President

 

THE STRATEGIC TRANSITION IN RENEWABLE ENERGY

The 52.1% decline in renewable energy revenue to S$15.6 million requires a counter-intuitive interpretation. This dip is actually a marker of progress, reflecting lower construction income as the Lau Biang 2 and 3 mini-hydropower plants in Indonesia approach completion.

 

Investors should transition their focus from one-time construction billing to the impending &ldquo recurring net cash income&rdquo model. Once these plants are commissioned in 2026, they are expected to contribute an additional S6.0 million in annual recurring income. This will bring the total recurring net cash income from the Group&rsquo s hydropower portfolio to approximately S14.0 million annually, creating a high-margin, defensive buffer against industrial volatility.

 

 

DIVERSIFICATION INTO THE SOUTHEAST ASIAN FRONTIER

While China remains the Group&rsquo s primary market&mdash accounting for 71.3% of IA revenue&mdash the growth momentum in Southeast Asia is the standout narrative. The region saw a 53.0% year-on-year surge in IA revenue, led by exceptional performance in Singapore (+57.9%) and Vietnam (+46.6%).

 

This geographical shift acts as a strategic hedge against regional volatility and positions ISDN as a key beneficiary of the &ldquo China plus one&rdquo manufacturing strategy. By deepening its footprint in these secondary hubs, ISDN is successfully diversifying its revenue base across the fast-industrializing economies of East and Southeast Asia.

 

RISK REALITIES AND CAPITAL ALLOCATION

Despite the record profit, several operational risks remain on the radar. Highly unusual weather variations impacted the output of existing hydropower assets (Lau Biang 1 and Anggoci), with operational revenue dropping from S5.4 million to S4.3 million. Additionally, operating expenses grew by 19.6% to S$41.3 million, reflecting the costs of scaling distribution and administrative infrastructure.

 

From a capital allocation perspective, it is notable that the Board has resolved not to declare an interim dividend despite the record S10.4 million profit and a robust cash position of S65.9 million. This suggests a disciplined management approach, prioritizing liquidity and internal reinvestment as the Group prepares for the capital-intensive final commissioning phases of its energy assets in 2026. Investors also benefited from a S$1.4 million reduction in inventory obsolescence provisions, which provided a non-cash boost to the period&rsquo s profitability.

 

INVESTOR WATCHLIST FOR THE SECOND HALF

Heading into the latter half of the year, investors should monitor three key milestones:

 

Order Book Conversion: The speed at which the doubled order book is converted into recognized revenue, particularly in the semiconductor and AI segments.

Hydropower Commissioning: Continued progress toward the formal commissioning of Lau Biang 2 and 3, which is the primary catalyst for the Group&rsquo s recurring income story.

Cost Management: Whether the Group can maintain its expanded 24.9% gross margin while managing the 19.6% rise in operating expenses.

ISDN Holdings has successfully synchronized its operations with the current industrial cycle. The challenge now lies in maintaining this high-efficiency execution as it enters the final stretch toward full hydropower commercialization in 2026.

ISDN decoupled itself  from AEM sliding further  down today  by closing higher above its Pivot resistance 0.73 as CGS  International Analyst rerated  ISDN' s  original target from 0.96 to 1.05 due to excellent solid earnings 1st Half Results exceeding their expectations.

 

Market took notice of ISDN being a laggard cheap beta stock and decided to have ISDN do some  catching up with  recent AEM' s strong rise.

 

By closing above ISDN' s Daily Short Term Pivot Close of 0.73 with a hefty  transacted volume of  28.675 million shares, even in the face of muted    Shortists' sales of    581,400  shares

compared with previous day sales of  2.60 million shares may prompt  potential  further  buybacks by Shortists  over the next few days to reduce naked open short positions may help support  ISDN' s rise to test previous all time between 0.82 and 0.85 with the potential of even  breaking into new all time high  before a potential profit taking round may  surface to reset it' s over bought condition.

 

Since ISDN' s New Daily Pivot  Support Close has surfaced at  0.64 by closing above its Daily Short Term Pivot Resistance of  0.73, a confirmed dip buying signal has been activated.

 

So for now to date, dip buying will be better for choice for a much higher market levels  in due course as market participants await  the new rerating of original target  price of 0.97 to  a much higher level  by SAC Capital as their earnings expectations have likewise  been exceeded as well. 

 

Due diligence warranted.

TECHNICAL ANALYSIS OF ISDN AS ON 18TH AUGUST  2026

 

A) Daily Short Term Pivot Resistance Close at 0.73.

 

B) End Weekly Intermediate Term Pivot Support Close at 0.54.

 

C) End Monthly Long Term Pivot Support Close at 0.47. 

 

TECHNICAL SYNOPSIS 

 

Today ISDN recovered and  closed  above its Short Term Pivot Resistance  Close of 0 .73 on a big volume  of 28.675 million shares  resulting in a New Daily Pivot Support  Close surfacing at 0.64 which now portends a dip buying mode with the potential of retesting    its previous all time highs between 0.82 and 0.85  with the potential of breaking above it before a minor pullback may surface to prompt a profit taking round from an overbought technical condition. 

 

Violating 0.64 till date, will portend ISDN to retest its recent carved out bottom at bottom of 0.62. 

 

Breaking below 0.62 will prompt technical selling to test downside of End Weekly Intermediate Support Close at 0.54.

 

Due diligence is warranted.

Estimated New Daily Support Pivot Close is located at  0.64 as long as today' s Daily Pivot Resistance  Close  Price of ISDN  today is above 0.73 is fulfilled (likely as now price at 0.77). 

 

The potential follow through  upside buying within this week will most probably  be the first retest of previous all time high between 0.82 and 0.85 which may prompt a stronger profit taking round pullback by Short Term (In The Money)  Traders to surface to sell into an overbought technical situation.   

 

Dip Buying into decent pullback as long as its  New Daily Pivot Support Close  at potentially 0.64 to date is not violated for another New All Time High to surface probably before End Sept 2026 with my Fibonacci  Extension Price Extension Target of  1.236 % for a  minimum $1.14 level. 

 

Due diligence warranted.

ISDN HOLDINGS  LTD 2H26F OUTLOOK  REMAINS

PROMISING 

 

■ 1H26 core net profit was above expectation at 66% of full-year forecast,

driven by a 32% yoy increase in its Industrial Automation (IA) business.

 

■ Management guided that the IA business is still seeing broad-based demand 

and its two new hydropower plants are on track for completion by end FY26F.

 

■ Reiterate Add, with a higher S$1.05 TP as IA demand remain strong.

 

1H26 net profit grew 8x yoy foreign exchange loss absent 

 

1H26 revenue increased 19.1% yoy to S$253.6m (54% of our FY26F forecast, above 

expectation), driven by the strong 31.9% yoy growth rate in the IA segment (94% of 1H26 

revenue) from customers in the Robotics and Industrial Automation (32% of revenue) sand 

semiconductor (31% of revenue) sectors. 

 

1H26 net profit grew 8x yoy to S$10.4m from 

S$1.3m in 1H25.

 

Net foreign exchange loss in the income statement was S$147,000.

 

Foreign exchange fluctuation impact remains more pronounced on the balance sheet. 

 

In 1H26, ISDN&rsquo s Service concession receivables (relating to its Indonesia hydropower 

business) saw a foreign exchange revaluation gain of S$9.6m due to the appreciation of 

the US$ against the rupiah which was offset by a translation loss of S$8.3m from the 

weakening of rupiah against the S$.

 

Management optimistic on outlook in its key IA business, management believes that favourable industry tailwinds continue to support the group' s long-term business outlook. 

 

Such tailwinds include the accelerating 

adoption of advanced manufacturing, robotics and artificial intelligence in industrial 

automation throughout Asia for better productivity and challenges in securing labour. 

 

Management also highlighted that ISDN&rsquo s IA capabilities have grown and the group is now 

able to deliver the &ldquo full stack&rdquo of technologies from automation components to full 

hardware, software, cloud and AI solutions for customers. Its two new hydropower plants 

in Indonesia remains on track for completion by end FY26F.

 

Reiterate Add, given the strong demand for its IA segment, we raise our FY26-28F revenue forecasts by 

8.0-19.2%, leading to 25.3-27.9% increase in our FY26-28F EPS forecasts. To mitigate 

valuation risk and enhance the margin of safety, we normalise our target P/E multiple from 

24x &ndash 1 s.d. above 10-year average previously, justified by Equity Market Development 

Programme (EQDP) funds buying liquidity&ndash to the historical average (FY22-26F) P/E of 

21x. 

 

Our TP based on 21x FY27F upgraded FY27F EPS forecast is now S$1.05 from 

S$0.96 previously.

 

Reiterate Add as we see robust FY25-28F EPS CAGR of 57.1%. Rerating catalysts: higher-than-expected net profit contribution from its hydropower business 

segment, a faster pace of economic growth in China as it stimulates its economy, and a 

stronger global semiconductor recovery. 

 

Here&rsquo s the investment takeaway from the CGSI report:

 

ISDN Holdings &mdash bullish case:

 

CGSI rating: 

 

Add

 

Current price: S$0.695.

 

Target price: S$1.05

Implied upside: ~51%.

 

Previous TP: S$0.96.

 

What drove the upgrade:

 

1H26 revenue:

 

S$253.6m, +19.1% YoY

 

1H26 net profit:

 

S$10.4m, versus S$1.3m previously &mdash roughly 8× YoY

Industrial Automation (IA) revenue grew 31.9% YoY and represents 94% of revenue.

 

The strongest customer exposure is to robotics/industrial automation (32%) and semiconductors (31%).

 

CGSI says 1H26 core profit reached 66% of its full-year forecast, meaning earnings are running ahead of expectations.

 

Why CGSI remains positive:

 

The key thesis is Industrial

Automation.

 

Management sees continued demand from:

 

Advanced manufacturing

Robotics

AI-related industrial automation

Labour shortages and productivity requirements

ISDN also says it can increasingly provide a &ldquo full-stack&rdquo solution, covering automation components through hardware, software, cloud and AI.

 

Meanwhile, its two Indonesian hydropower projects are expected to be completed by end-FY26, providing another potential earnings catalyst.

 

Earnings upgrades

CGSI raised its EPS estimates substantially:

 

FY EPS estimate increase:

 

FY26F +27.9%

FY27F +25.5%

FY28F +25.3%

 

Forecast net profit rises from S$6.76m in FY25 to S$20.19m in FY26F, then S$22.70m and S$25.76m in FY27F/FY28F.

 

That translates to a very strong projected FY25&ndash 28 EPS CAGR of 57.1%.

 

Valuation:

 

At S$0.695, CGSI' s FY26F/FY27F/FY28F P/E estimates are approximately:

 

FY26F: 15.6×

FY27F: 13.9×

FY28F: 12.2×

 

CGSI uses 21× FY27F EPS for its S$1.05 target, rather than the previous 24× multiple. So interestingly, the higher target isn' t coming from a more aggressive valuation multiple it is primarily the result of higher earnings forecasts.

 

Due diligence warranted.