TECHNICAL ANALYSIS OF ISDN AS ON 20TH AUGUST  2026

 

A) Daily Short Term Pivot Support Close at 0.65. 

 

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 0.65 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  to reset a daily  overbought technical condition. 

 

Violating 0.65 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.

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.

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.

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.

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.