FROM THE EDGE SINGAPORE POSTING DATED 24TH MAY 2026

William Tng, the only analyst with an active coverage on ISDN Holdings, has maintained 96 cents target price, following 1QFY2026 earnings that were in line with his full-year projections.

Given how ISDN is seen by Tng to continue gaining market share with its competitive strength across the full range of industrial automation technologies, he has kept his " add" call.

For the three months to March, earnings surged 31x y-o-y to $3.7 million, on the back of a 24.2% jump in revenue to $113.7 million, driven by its industrial automation segment.

 

commissioning of the balance 2 additional hydroplants with recurring tariff income to be monetised for 2nd half results release in sometime February 2027 with my minimum targeting price level of 1.50 thereafter.

 

Due diligence warranted. 

WHO ARE ISDN PARTNERS:

 

ISDN Holdings has partnerships and business relationships across industrial automation, motion control, robotics, semiconductor manufacturing and renewable energy.

 

Some of its key partners include:

 

Rockwell Automation

ISDN distributes and integrates Rockwell&rsquo s automation and control solutions in parts of Asia for factories and industrial customers.

 

Precision Technologies Group:

 

Through subsidiaries and regional partnerships in engineering automation solutions.

 

NVIDIA ecosystem exposure indirectly via AI robotics, machine vision and automation systems customers, though not a direct flagship partner like PC Partner.

 

Renewable-energy project partners in Indonesia for its mini-hydropower plants, including:

local Indonesian utilities,

EPC contractors,

turbine/electrical equipment suppliers,

and Indonesia&rsquo s state electricity utility.

 

Perusahaan Listrik Negara (PLN), which purchases generated electricity under long-term power purchase agreements.

 

Robotics and automation technology principals from:

 

Japan

Europe

China

Taiwan

because ISDN acts as a regional engineering solutions distributor/integrator.

 

Semiconductor and electronics manufacturing customers across Southeast Asia and China.

 

ISDN supplies:

 

Precision engineering motion-control systems used in:

 

Semiconductor equipment,

factory automation,

robotics,

and industrial manufacturing.

 

ISDN&rsquo s strength is less about one famous customer and more about being deeply embedded in the Asian industrial automation supply chain. 

 

The current market interest is increasingly focused on:

 

Recurring hydro-power income expected from the BAL hydro plants in Indonesia,

recovery in industrial automation demand,

and semicon-related automation exposure.

 

Due diligence warranted.

INVESTORS' FOOD FOR EVERY THOUGHT:

 

Every transformational technology cycle features brutal shakeouts that feel catastrophic in the moment and look like gifts in hindsight.

 

The investors who won big were not the ones who avoided the volatility. 

 

They were the ones who had a process for navigating it.

 

Turning Volatility into Opportunity:

 

The single biggest mistake investors make in a cycle like this is treating every pullback like the beginning of the end.

 

The second biggest mistake is chasing every rip without a plan. 

 

When earnings estimates are rising and the rank is strong, the fundamentals are telling you something the price action may be temporarily ignoring.

 

That divergence is where opportunity lives and returns will come.

 

Use Technicals to Time Your Entry:

 

A strong fundamental story needs a positive chart to maximize reward-to-risk.

 

Investors can turn to volume indicators, moving averages, and Fibonacci levels to give them entry points and define risk/reward opportunities.

 

After months of choppy, volatile trading marked by sharp rallies and pullbacks, a decisive bullish technical turn is often the clearest signal that the next leg is beginning.

 

Investors will have more success if they avoid buying the story and focus on the setup.

 

Respect Reward-to-Risk Above Everything Else:

 

In volatile markets, managing risk matters more than picking the perfect stock.

 

A good setup is one where the potential upside is much larger than the downside. 

 

For example, if you risk losing $1 to potentially make $5, you can still come out ahead even if most of your trades do not work.

 

That is where many retail investors struggle. They spend all their time chasing the next hot Tech names  but pay far less attention to entry points, stop losses, and position sizing.

 

In a fast-moving sector like AI, Data Centres, Energy Storage, Industrial Automation, Robotics and others, discipline and risk management are often more important than being right all the time.

 

When Signals Align, Act with Conviction:

 

In a sector with this much fundamental momentum behind it, that combination is a green light. 

 

Embrace Volatility for Long-Term Gains:

 

The Tech  Boom is no longer just a story about one company or one chip. 

 

It has become a full-scale infrastructure buildout touching every corner of the semiconductor supply chain which the likes of even a small cap stock like ISDN services some parts of the industry. 

 

But investors should not expect a straight line higher.

 

The biggest opportunities in transformational market cycles almost always come wrapped in volatility.

 

Sharp pullbacks, scary headlines, and sudden sentiment swings are not signs the trend is broken.

 

More often, they are the moments that reset the next move higher.

 

That is why success in TECH stocks investing  like ISDN will not come from chasing hype or reacting emotionally to every market swing.

 

Instead, it will come from staying grounded in the fundamentals, waiting for high probability setups, and managing risk with discipline.

 

The trend is still intact. 

 

The spending is still accelerating. 

 

And for investors willing to navigate turbulence instead of fearing it, the Tech cycle may still be in its early innings potentially to last into 2027 or maybe and beyond. 

 

Due diligence warranted.

Let' s hope  next week' s 1st quarter 2026 Business Update Briefing on 26th May 2026 will bring forth some new  fundamental surprises for ISDN to grind up higher.

 

Due diligence warranted.l

Closing at the low of the day (0.675) with ~10.63 million volume for ISDN Holdings is a weak intraday finish even though the stock showed multiple rebounds earlier.

 

However, it&rsquo s not a full breakdown context yet:

 

The stock still held above prior swing lows from earlier sessions from the 0.65 level when CGS International issued a Buy Recommendation on solid 1st quarter 2026 results recently.

 

The move today looks more like post-rally profit-taking and repositioning after a strong run-up.

 

Sector context:

 

AEM Holdings ending marginally higher is actually important &mdash it suggests not a broad semicon selloff, but ISDN-specific weakness today (or at least stronger profit-taking in ISDN relative to peers).

 

So ISDN underperformed its peer tone into the close.

 

Today looks like a failed breakout attempt that ended in controlled distribution, but not yet a structural trend reversal unless follow-through selling appears on Monday but ISDN Daily Price Action has to reckon with its very strong Daily Pivot Support Close at 0.63 which probably will hold its own grounds. 

 

Due diligence warranted.

 

Due diligence warranted. 

The pre-weekend day trade scalpers  profit taking that points

  more toward a sector-wide cooling intraday of ISDN peers  rather than only ISDN Holdings being singled out.

 

Still, compared with the earlier lows seen before the CGS upgrade catalyst Reinterated Add  from 0.65 level from issued report to maintain target price of 0.96,  ISDN remains above its level of 0.65 so the market is likely reassessing how much of the recent optimism should be priced in immediately.

 

As long as 0.63, its Daily Pivot Support Close low is not penetrated with a daily close, ISDN can still have the potential to grind up higher because of its 1st  quarter  2026 solid catalyst result catalyst.

 

Due diligence warranted.

4M+ above volume suggests the move is institutional/active trader participation, not just retail scalping.

 

Any breakup above yesterday' s high of 0.72, may potentially help push ISDN to test previous all time high of 0.85 next week.

 

Due diligence warranted.

CONTEXT  SUPPORT FOR INTRADAY TRADING SESSION: 

 

AEM Holdings and other peers being green (even weaker-result names holding up) suggests broad sector sentiment is supportive, which often helps breakouts sustain rather than fail quickly.

 

Due diligence warranted.

AEM Holdings staying firm adds mild sector support, which helps ISDN sustain these repeated tests towards 0.685 level  rather than fading quickly.

 

Net: this is now a proper consolidation around resistance level at 0.705  and the next breakout attempt  above upper range of 0.72 (if it comes) will be more important than the earlier ones because participation has improved.

 

Due diligence warranted.

AEM is holding steady with a higher bias helps sentiment because semicon/tech beta is still supportive, which often encourages continuation attempts in small cap related names like ISDN.

 

Due diligence warranted.

Right now, it&rsquo s more &ldquo base-building / digestion&rdquo after the earlier slight upward push rather than a trend reversal or breakout.

 

Due diligence warranted.

Short Term to date, technically ISDN looks well supported at its Daily Pivot Support Close at 0.63 as CGS International Analyst issued its Buy Recommendation on 20/5/2026 extolling ISDN' s 1st Quarter Results as extremely good and Reinterated a Buy Recommendation at 0.65 to maintain its earlier original target price of 0.96.

 

I believe their target price will be achievable after 1st half 2026 financial results release on or about 6 August 2026 before End Sept 2026 basis my  Quarterly Months Technicals.

 

Just keeping my fingers crossed.

 

Due diligence warranted.

Short Term to date, technically ISDN looks well supported at its Daily Pivot Support Close at 0.63 as CGS International Analyst issued its Buy Recommendation on 20/5/2026 extolling ISDN' s 1st Quarter Results as extremely good and Reinterated a Buy Recommendation at 0.65 to maintain its earlier original target price of 0.96.

 

I believe their target price will be achievable after 1st half 2026 financial results release on or about 6 August 2026 before End Sept 2026 basis my  Quarterly Months Technicals.

 

Just keeping my fingers crossed.

 

Due diligence warranted.

Why CGS upgraded / reiterated &ldquo Add&rdquo

 

If CGS-CIMB is maintaining or upgrading to Add with TP ~0.96, the market is usually reacting to some combination of:

 

Better-than-expected 1Q business update.

 

Improving visibility in:

automation / industrial demand recovery.

 

Energy / hydro recurring income contribution.

 

Forward earnings upgrades (not just past results).

 

In broker logic, &ldquo Add&rdquo typically means:

 

Upside still exists from current price, not just fair value reached.

COURTESY OF WINNINGHAND 

 

$ISDN(I07.SI) https://www.isdnholdings.com/_files/ugd/330719_049eabc744c1486db0995cfbe5322910.pdf

 

Latest update by CGSI - add with same TP at 96cts.

 

ISDN Holdings Ltd  Automation demand remains strong:

   

■ 1Q26 revenue (S$113.7m, +24.2% yoy, -5.6% qoq ) was in line at 24.3% of  our full-year forecast. 

 

■ 1Q26 net profit (S$3.7m, + 31x yoy, +14.4% qoq) was also in line at 23.4% of  our full-year forecast. 

 

■ Reiterate Add, with an unchanged S$0.96 TP as industrial automation  demand remains strong.