ISDN Holdings (I07) H1 2023 earnings summary

Executive summary

• 1H2023 revenue fell 11.3% YoY to S$169.154m and net profit fell 43.8% to S$9.061m; attributable profit was S$4.580m, down 58.6%.

• Profit after tax rose 30.4% sequentially; China returned to sequential growth while semiconductor weakness weighed on Southeast Asia.

• Anggoci and Sisira received commercial operation approvals, bringing hydropower capacity to 24.6MW alongside Lau Biang 1.

Financial highlights

• Revenue was S$169.154m versus S$190.707m YoY; on a constant-currency basis, revenue was S$180.0m, down 2.7%.

• Gross profit fell 18.0% YoY to S$44.327m; gross margin declined to 26.2% from 28.4%, mainly on weaker sales mix.

• Profit before tax fell 35.6% to S$13.346m; net profit was S$9.061m versus S$16.133m.

• Other operating income rose 76.0% to S$3.5m, including S$1.2m of finance lease income from Lau Biang 1; finance costs rose 64.8% to S$2.1m.

Outlook and guidance

• Near-term volatility is expected to persist; management remains cautious and is monitoring China sales and expenses pending clearer recovery signals.

• The semiconductor industry was expected to emerge from its downturn within 12 months; no company-specific financial guidance was stated.

• Anggoci and Sisira are expected to contribute recurring earnings; longer-term prospects rely on industrial automation and clean energy.