ISDN Holdings Limited (I07) AI Stock Analysis

• Market Cap: S$167.76M
• Dividend Yield: 1.25%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.04
• Revenue Growth: 18.31%
• EPS Growth: 45.16%
• Country: SG
• Employees: 1,276
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 453,402,040
• 10 Day Avg. Volume: 796,320
• 30 Day Avg. Volume: 1,124,965
• PEG Ratio: -1.20
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 12.45
• 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): 0.03
• Revenue Forecast (FY): S$424.80M

• Rating: 60 Neutral
• Price Target: S$0.39 ▼(-0.26% Downside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by middling financial performance: improving revenue and a reasonable balance sheet are offset by compressed profitability, weaker ROE, and volatile cash flow. Technicals are supportive with the stock trading above key moving averages and positive MACD, while valuation is a headwind due to a relatively high P/E and modest dividend yield.

Positive Factors

Manageable leverage and stable equity

A low-to-moderate debt-to-equity range and modestly growing equity indicate a resilient balance sheet that supports capital spending and absorbs shocks. This financial flexibility underpins the company’s ability to fund projects, preserve liquidity and pursue strategic opportunities over months.

Revenue returned to growth

The resumption of revenue growth after a weak period signals recovering end-market demand and improved order flow. Sustained top-line growth provides a platform to improve operating leverage, scale services and embedded recurring after-sales revenue over the medium term.

Improved operating and free cash flow

A strong cash-flow rebound that recently allowed free cash flow to cover net income enhances the firm’s capacity for reinvestment, debt repayment or shareholder returns. Persistent FCF strength would materially raise financial stability and strategic optionality.

Negative Factors

Compressed gross and net margins

Declining gross margins and very thin net margins suggest pressure on pricing or rising input and project costs. Such margin compression limits the company’s ability to generate sustainable profits, invest in growth, or buffer against cyclical downturns over the medium term.

Material deterioration in ROE

A sharp fall in ROE reflects reduced capital efficiency and weaker profitability versus prior years. Persistently low ROE signals that invested capital is not generating adequate returns, which undermines long-term shareholder value creation and strategic reinvestment appeal.

Volatile cash generation and working-capital swings

Significant year-to-year cash-flow volatility highlights working-capital and project timing risks common in engineering services. Inconsistent cash generation increases refinancing and liquidity risk, complicates capital allocation, and could strain operations during slower demand phases.

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 makes money primarily by selling and delivering industrial engineering solutions and related services. Key revenue streams typically include: (1) Distribution and sale of industrial components and equipment (such as motion control and automation-related hardware), where revenue is recognized from supplying products to industrial customers and earning a gross margin between procurement cost and selling price; (2) Systems integration and project-based engineering work, where the company designs, configures, installs, and commissions automation or industrial systems for customers and earns project revenues and service margins; (3) Precision engineering and manufacturing services, where it produces engineered parts or provides machining/engineering services and earns revenue based on production volume, specifications, and contract pricing; and (4) After-sales support such as maintenance, spare parts, and technical services, which can provide recurring or repeat revenue tied to the installed base of equipment. Significant partnerships or customer concentration details: null.

ISDN Holdings Limited Financial Statement Overview

Summary

Revenue returned to growth in 2024–2025, and leverage remains manageable, but profitability has compressed (lower gross margin, thin net margin) with materially weaker ROE and uneven cash generation (including negative OCF/FCF in 2023).

Income Statement

Revenue returned to growth in 2024–2025 (up ~9% and ~7% respectively), showing improving demand after a weaker 2022–2023 period. However, profitability has compressed: gross margin has trended down (about 29% in 2022 to ~24% in 2025) and net margin remains thin (around 1.5% in 2025). Net income is also volatile—peaking in 2021–2022 and meaningfully lower in 2023–2025—suggesting execution/price-cost pressure despite steadier operating margins.

Balance Sheet

Leverage looks manageable with debt-to-equity in the ~0.20–0.43 range, though it has drifted higher since 2022 as total debt increased. Equity has been relatively stable and growing modestly, supporting balance sheet resilience. Returns on equity have weakened materially from earlier highs (about 13% in 2021 to ~3% in 2025), indicating the balance sheet is sound but currently not being used to generate strong shareholder returns.

Cash Flow

Cash generation is uneven. Operating and free cash flow rebounded strongly in 2024–2025 (with a sharp jump in 2025), but 2023 saw negative operating and free cash flow, highlighting working-capital or project timing volatility. Free cash flow has generally covered net income in recent years (notably in 2025), which is a positive quality signal, but the year-to-year swings reduce confidence in consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	440.18M	372.44M	341.77M	370.78M	440.14M
Gross Profit	105.21M	94.92M	90.32M	105.89M	120.38M
EBITDA	30.68M	32.37M	29.49M	39.20M	57.61M
Net Income	6.76M	8.52M	4.95M	14.62M	25.48M
Balance Sheet
Total Assets	459.76M	415.90M	400.44M	400.37M	415.26M
Cash, Cash Equivalents and Short-Term Investments	68.12M	56.52M	60.03M	56.55M	61.68M
Total Debt	89.47M	77.91M	82.09M	40.06M	46.80M
Total Liabilities	206.30M	168.69M	159.77M	157.77M	168.29M
Stockholders Equity	209.91M	206.73M	198.62M	197.83M	197.14M
Cash Flow
Free Cash Flow	13.93M	10.86M	-28.51M	20.71M	1.82M
Operating Cash Flow	20.64M	18.38M	-24.15M	22.99M	8.66M
Investing Cash Flow	-7.71M	-6.94M	-4.01M	-2.00M	-1.49M
Financing Cash Flow	-1.96M	-14.05M	32.83M	-24.95M	965.00K

ISDN Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. 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 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 68.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	S$195.81M	9.32	13.44%	1.84%	13.35%	20.00%
E3B	70 Outperform	S$634.28M	10.01	4.12%	11.07%	5.49%	-86.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
I07	60 Neutral	S$167.76M	25.66	3.04%	1.25%	18.31%	45.16%
C06	51 Neutral	S$53.52M	―	0.99%	2.50%	20.81%	―

ISDN Holdings Limited Corporate Events

ISDN Holdings Files Hong Kong Monthly Return With No Share Capital Changes

ISDN Holdings Limited has filed its monthly return for equity issuers in Hong Kong for the period ended 28 February 2026, confirming there were no movements in its authorised or registered share capital. The company notes that, as a Singapore-incorporated entity under the Singapore Companies Act, it does not have an authorised share capital and its issued shares carry no par value, a structural feature that shapes how its equity capital is reported to the Hong Kong exchange.

This filing signals administrative compliance with Hong Kong listing rules rather than any change in capital structure or shareholder dilution. Investors and other stakeholders can infer that ISDN’s share base remained stable during February 2026, with the Singapore legal framework continuing to govern how its equity is structured and disclosed in the Hong Kong market.

The most recent analyst rating on (SG:I07) stock is a Hold with a S$0.44 price target. To see the full list of analyst forecasts on ISDN Holdings Limited stock, see the SG:I07 Stock Forecast page.

ISDN Holdings Declares 2025 Final Dividend With Cash or Scrip Option

ISDN Holdings Limited has proposed a final ordinary dividend of SGD 0.0053 per share for the financial year ended 31 December 2025, with shareholders to approve the payout on 30 April 2026. The company is offering a cash dividend by default, while also providing investors with the option to receive their dividend in scrip shares, priced to be announced and tradable from 25 August 2026.

For Hong Kong shareholders, the dividend will be paid in HKD at 0.0328 per share based on an exchange rate of SGD 1 to HKD 6.187, with an ex-dividend date of 6 July 2026 and a record date of 7 July 2026. The scrip option allows partial elections and will round down fractional share entitlements, giving investors flexibility in capital management and signaling ISDN’s continued commitment to shareholder returns.

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 Schedules Board Meeting to Review 2025 Results and Consider Final Dividend

ISDN Holdings Limited has scheduled a board meeting for 27 February 2026 to review and approve the unaudited consolidated financial results for the year ended 31 December 2025. At the same meeting, the board will also consider whether to recommend a final dividend, a decision that could affect shareholder returns and signal management’s confidence in the company’s financial performance.

The announcement underscores the company’s adherence to disclosure and governance requirements in both Hong Kong and Singapore, given its dual listings. Investors will be watching the forthcoming results and any dividend proposal for indications of ISDN’s operational momentum and capital allocation priorities in the latest financial year.

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 Files January 2026 Monthly Equity Return, Notes Singapore Capital Structure Rules

ISDN Holdings Limited has filed its monthly return for equity issuers and Hong Kong depositary receipts for the month ended 31 January 2026 with the Hong Kong stock exchange. The filing notes that movements in authorised or registered share capital are not applicable to ISDN because, under Singapore company law, companies do not have authorised share capital or par value, clarifying the capital structure framework under which the firm operates for investors reviewing its Hong Kong disclosures.

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 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.