ISDN Holdings (I07) H1 2025 earnings summary

Executive summary

• 1H2025 revenue rose 22.0% YoY to S$212.895m, or 27.0% on a constant-currency basis; core shareholder profit increased 35.1% to S$4.5m excluding unrealised FX effects and non-recurring items.

• Reported profit attributable to equity holders fell 66.0% to S$1.286m, mainly reflecting unrealised FX losses.

• Industrial automation growth and hydropower expansion supported results; two additional plants are targeted to begin operations in 2026.

Financial highlights

• Gross profit rose 13.8% YoY to S$50.528m; gross margin declined 1.7 percentage points to 23.7%, reflecting lower-margin hydropower construction revenue.

• Profit after tax fell 33.7% to S$3.847m; profit attributable to equity holders fell 66.0% to S$1.286m.

• Basic EPS was 0.29 Singapore cents versus 0.85 cents in 1H2024.

• A S$5.0m unrealised FX revaluation loss was recorded, versus a S$0.3m gain in 1H2024; other operating expenses rose S$6.4m to S$7.1m, including S$5.3m of net FX losses and higher aged-inventory provisions.

• Finance costs declined 8.3% to S$2.5m; income tax expense rose 33.9% to S$3.6m, mainly reflecting higher taxable profits.

Outlook and guidance

• Industrial automation is expected to grow across China and Asia, though management remains cautious about the pace of China’s cyclical recovery.

• Lau Biang 2 and Lau Biang 3 are targeted to commence operations in 2026, lifting installed hydropower capacity by 81.3% to 44.6MW.

• Priorities include broadening automation capabilities, expanding renewable energy and Asian markets, investing in technology and M&A, and scaling recurring clean-energy revenue.

• No interim dividend was declared; funds are being conserved for business development, with a dividend decision deferred until FY2025.