ISDN Holdings (I07) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 9.0% YoY to S$372.4m; profit after tax increased 25.0% to S$14.0m, while profit attributable to shareholders grew 72.1% to S$8.5m.

• Growth spanned key regions and business units; 2H2024 revenue rose 13.3% sequentially and profit attributable to shareholders increased 25.4% sequentially.

Financial highlights

• FY2024 gross profit increased 4.1% YoY to S$94.9m; operating expenses rose 4.1% to S$71.5m, while profit before tax increased 4.1% to S$19.7m.

• 2H2024 revenue increased 15.5% YoY to S$197.9m and gross profit rose 10.9% to S$50.5m; profit after tax was S$8.2m versus S$2.1m.

• FY2024 earnings per share rose 70.5% YoY to 1.91 Singapore cents; 2H2024 EPS was 1.06 cents versus 0.08 cents.

• Other operating income fell 11.9% to S$4.2m, partly reflecting the absence of a S$1.2m EPC contractor compensation claim recorded in FY2023.

Outlook and guidance

• FY2025 outlook is cautiously optimistic, supported by expanding capabilities and markets and recovering industrial demand; no numerical earnings guidance was stated.

• China automation demand may benefit from stimulus and adoption to address labour shortages; Malaysia and Taiwan expansion positions the business to pursue China + 1 supply-chain shifts.

• Lau Biang 2, the fourth mini-hydropower plant, is under construction and targets operations in 2026.