ISDN Holdings Limited (I07) AI Stock Analysis

• Market Cap: S$181.36M
• Dividend Yield: 1.25%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.01
• Revenue Growth: 18.31%
• EPS Growth: 45.16%
• Country: SG
• Employees: 1,276
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 453,402,040
• 10 Day Avg. Volume: 796,320
• 30 Day Avg. Volume: 1,124,965
• PEG Ratio: 0.23
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 12.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: S$0.41 ▲(5.13% Upside)

ISDN Holdings Limited's stock score is primarily influenced by moderate financial performance and positive technical indicators. The company's stable revenue growth and manageable leverage are offset by declining profitability and weak cash flow generation. The stock's technical indicators show bullish momentum, but valuation concerns arise due to a high P/E ratio and modest dividend yield.

Positive Factors

Manageable leverage and solid capital structure

A low debt-to-equity ratio and near-50% equity ratio provide durable financial flexibility, lowering refinancing and liquidity risk. This balance sheet strength supports investment, M&A, and weathering cyclical downturns without materially raising financing costs over the medium term.

Recurring revenue and diversified streams

A business mix of managed services, subscriptions and long-term contracts creates predictable cash flows and stickiness. Durable recurring revenue underpins stable topline, facilitates forecasting, and enables higher lifetime customer value, supporting steady investment in services and client retention.

Positive revenue growth trend

Consistent top-line growth, even moderate, indicates recovery and demand for solutions. Sustained revenue expansion supports scale economics, helps absorb fixed costs, and provides a platform to improve margins and reinvest in product development and sales capabilities long-term.

Negative Factors

Low and declining profitability margins

Very thin net margins limit retained earnings and financial resilience. Persistent margin weakness reduces capacity to fund growth internally, makes earnings volatile to cost pressures, and necessitates structural operational improvements to sustainably raise profitability.

Weak cash generation and cash conversion

A large decline in free cash flow and poor cash-to-income conversion indicate earnings are not translating into cash. This constrains capex, debt paydown, and dividends, forcing reliance on external financing for growth and increasing financial risk over the medium term.

Low return on equity

A sub-3% ROE signals the company struggles to convert shareholder capital into returns. Persistently low ROE can indicate inefficient capital allocation or operational shortcomings, limiting shareholder value creation unless strategic or operational changes raise asset productivity.

ISDN Holdings Limited Business Overview & Revenue Model

Company Description

ISDN Holdings Limited, together with its subsidiaries, provides motion control, industrial computing, and other specialized engineering solutions in Singapore, Hong Kong, Malaysia, Indonesia, Vietnam, the People's Republic of China, and internationally. The company offers conceptualization, design, development, prototyping, production, testing, installation, and after-sales technical support services for motion control systems; and design, engineering, production, integration, and services to manufacturing, advanced agriculture, renewable energy, and civil transportation industries. It also manufactures linear motors, positioning stages, precision gearboxes, and transmission elements; and hinges and locks under the Dirak brand for data centers, telecommunications, transportation, and 3C market. In addition, the company provides connectivity, intelligence, and analysis services to support industrial processes; industrial software platforms to automation, intelligence, analytics, and control software; and engineering and technology solutions for solar energy, energy storage, advanced agriculture, industrial disinfectants, building energy management, and energy smart grids. Further, it offers property holding and management, corporate training and motivational course provider, professional training to organizations, and public and human resource consultancy services; technical, software, artificial intelligence application software, network, and information development services; and industrial automation and control solutions. Additionally, the company sells and markets bioscience products; sells electronic products; carries out hydroponic growing with the application of its in-house motion control solutions; and constructs a mini hydropower plant. It also provides drone, big data analytic, consultancy, and training services. ISDN Holdings Limited was founded in 1986 and is headquartered in Singapore.

How the Company Makes Money

ISDN Holdings Limited generates revenue through multiple streams, including service contracts for managed IT and telecommunications services, sales of hardware and software solutions, and subscription fees for cloud-based services. The company has established significant partnerships with technology vendors and service providers, which enhance its offerings and expand its market reach. Additionally, recurring revenue from long-term contracts and maintenance agreements contributes to stable cash flow, while value-added services and consultancy work provide further financial growth.

ISDN Holdings Limited Financial Statement Overview

Summary

ISDN Holdings Limited exhibits moderate financial health with stable revenue growth and manageable leverage. However, declining profitability margins and weak cash flow generation pose challenges. The company needs to focus on improving operational efficiency and cash flow management to enhance financial performance.

Income Statement

ISDN Holdings Limited shows a moderate revenue growth rate of 4.89% in the TTM period, indicating a recovery from previous declines. The gross profit margin of 24.33% and net profit margin of 1.47% suggest stable but modest profitability. However, the declining trend in net income and margins over the years highlights potential challenges in maintaining profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.39 in the TTM period reflects a manageable level of leverage, indicating financial stability. The return on equity of 2.94% is relatively low, suggesting limited efficiency in generating returns from equity. The equity ratio of 48.05% demonstrates a solid capital structure with a good proportion of equity financing.

Cash Flow

The significant decline in free cash flow growth by 51.32% in the TTM period raises concerns about cash generation capabilities. The operating cash flow to net income ratio of 0.08 indicates weak cash flow relative to net income, while the free cash flow to net income ratio of 0.35 suggests limited free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	410.76M	372.44M	341.77M	370.78M	440.14M	361.86M
Gross Profit	99.93M	94.92M	90.32M	105.89M	120.38M	95.57M
EBITDA	37.34M	32.37M	29.49M	39.20M	57.61M	36.78M
Net Income	6.03M	8.52M	4.95M	14.62M	25.48M	15.14M
Balance Sheet
Total Assets	423.37M	415.90M	400.44M	400.37M	415.26M	357.99M
Cash, Cash Equivalents and Short-Term Investments	56.07M	56.52M	60.03M	56.55M	61.68M	58.47M
Total Debt	78.55M	77.91M	82.09M	40.06M	46.80M	34.32M
Total Liabilities	178.17M	168.69M	159.77M	157.77M	168.29M	140.36M
Stockholders Equity	203.41M	206.73M	198.62M	197.83M	197.14M	170.02M
Cash Flow
Free Cash Flow	3.49M	10.86M	-28.51M	20.71M	1.82M	20.11M
Operating Cash Flow	10.05M	18.38M	-24.15M	22.99M	8.66M	30.58M
Investing Cash Flow	-8.58M	-6.94M	-4.01M	-2.00M	-1.49M	-6.09M
Financing Cash Flow	-6.50M	-14.05M	32.83M	-24.95M	965.00K	-4.04M

ISDN Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:I07, the sentiment is Positive. The current price of 0.39 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.39, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:I07.

ISDN Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MR7	78 Outperform	S$188.05M	11.23	13.44%	1.84%	13.35%	20.00%
E3B	66 Neutral	S$818.13M	31.03	4.06%	11.07%	5.49%	-86.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
I07	63 Neutral	S$181.36M	30.00	3.04%	1.25%	18.31%	45.16%
C06	51 Neutral	S$57.09M	80.00	1.01%	2.50%	20.81%	―

ISDN Holdings Limited Corporate Events

ISDN Details Pricing Framework for Renewed Connected Transactions With Dirak

ISDN Holdings Limited has issued a supplemental announcement on the renewal of its continuing connected transactions with Dirak Holding GmbH, detailing the pricing policies for Product A supplied to the Dirak Group. The company specifies that prices are set on an order-by-order basis using a cost-plus method that factors in raw materials, manufacturing overheads, and related costs, with a minimum profit margin of 10% and commercial terms determined through arm’s length negotiations. To safeguard that these transactions are conducted on normal commercial terms and are no less favourable than those offered to independent third parties, ISDN’s management will annually review and benchmark pricing against orders from unrelated customers, while internal approval procedures mirror those used for independent sales. This additional disclosure aims to strengthen transparency and assure shareholders that related-party dealings remain fair, reasonable and aligned with standard market practices.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.41 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Files December Equity Return With No Share Capital Movements

ISDN Holdings Limited reported its monthly return for equity securities and Hong Kong depositary receipts for the period ended 31 December 2025, confirming that there were no movements in its authorised or registered share capital during the month. The filing also highlights that, as a Singapore-incorporated company, ISDN is governed by the Singapore Companies Act, under which companies do not have authorised share capital or par value for issued shares, a legal framework that affects how its capital structure is disclosed to Hong Kong regulators and investors.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Renews Three-Year Supply Partnership with Dirak Holding

ISDN Holdings Limited has renewed its longstanding commercial partnership with Germany-based Dirak Holding through a new three-year Renewal Supply Agreement running from 1 January 2026 to 31 December 2028. Under the renewed arrangement, ISDN will continue manufacturing Product A components for Dirak to sell in global markets, while distributing Product B components produced by Dirak throughout Asia, reinforcing ISDN’s role both as a contract manufacturer and regional distributor of industrial hardware. As Dirak Holding is a connected person at the subsidiary level via its 50% stake in Dirak Asia, these transactions are classified as continuing connected transactions under Hong Kong listing rules, triggering reporting, annual review and announcement obligations but remaining exempt from circular, independent financial advice and shareholders’ approval requirements, thereby formalising the relationship while maintaining regulatory compliance without additional shareholder procedures.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Updates on Share Proceeds Utilization

ISDN Holdings Limited announced the status of its utilization of net proceeds amounting to S$5.3 million from a share subscription agreement. The funds have been allocated primarily towards business development and general working capital, with a significant portion already utilized. The company plans to fully utilize the remaining proceeds by December 2026, with ongoing periodic updates to be provided to shareholders.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Limited Submits Monthly Return for November 2025

ISDN Holdings Limited, a company incorporated in Singapore, has submitted its monthly return for equity issuers and Hong Kong Depositary Receipts for the month ending November 2025. The submission to the Hong Kong Exchanges and Clearing Limited indicates compliance with Chapter 19B of the Exchange Listing Rules, highlighting the company’s adherence to regulatory requirements.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Reports Strong Growth in Sales and Core Profits Amid Currency Challenges

ISDN Holdings Limited reported a 22% increase in sales and a 58% rise in core profits for the first nine months of 2025. Despite a 2% decline in net income due to foreign exchange revaluations, the company experienced substantial growth in its renewable energy sector, with a 456.3% increase driven by construction project revenues. The industrial automation segment also saw growth, benefiting from a regional shift towards local suppliers. These results reflect ISDN’s strategic positioning in the market and its operational leverage, although the strengthening Singapore dollar posed challenges.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Limited Enhances Governance with New Nominating Committee

ISDN Holdings Limited has established a nominating committee in accordance with the recommendations of the Corporate Governance Code of Singapore and the Hong Kong Stock Exchange. This committee will ensure a formal and transparent process for the appointment and re-appointment of directors, thereby enhancing the company’s governance practices.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Limited Submits Monthly Return for Equity Issuers

ISDN Holdings Limited, a company incorporated in Singapore, has submitted a new monthly return for equity issuers and Hong Kong Depositary Receipts for the period ending October 31, 2025. The announcement highlights that under the Singapore Companies Act, there is no concept of authorized share capital or par value for issued shares, which may impact how stakeholders view the company’s financial structuring and compliance with listing rules.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.