Unfrazzled by Covid-19 and emerging stronger in 2021

Megan Choo / 65 6202 1190 / megan.choo@kgi.com
Tan Jiunn Chyuan (Kenny) / 65 6202 1196 / kenny.tan@kgi.com

• 2020 – Strong results despite Covid-19 woes. ISDN reported top line growth of 24.4% YoY while the bottom line more than doubled from FY19, mainly due to a
significant increase in gross profit, coupled with prudent cost controls and increase in other income.

• 1Q21 – Latest financials remain strong. 1Q21 sales rose 23.4% YoY and PATMI almost doubled YoY, mainly contributed by the strong rebound in PRC’s sales.

• Sales momentum to continue. Sales to PRC is expected to grow in light of Sino-US tensions. Coupled with the growing trend in industrial automation, we expect a continued boost to ISDN’s top line.

• Super Wifi. ISDN embarked on a strategic partnership with Whizpace in 2021 to penetrate into wide-area industries and offer automated industrial solutions.

• Maintain OUTPERFORM with new TP of S$0.85, a 15.1% upside from Friday’s close. We update cost estimates and our hydropower business forecast and raise revenue growth forecasts for ISDN’s side businesses.