Summary of ISDN's FY2021 results
Financials :
- record revenues & profit
- GPM / NPM : 27.4% / 8.9%
- EPS / DPS : 5.84 / 1.45 (cents)
Positive Results from its long term strategy* :
- Diversified revenue growth
- Growing technology capability pillars
- Growing operational productivity
- Sustainable industry
References :
*PR :
https://links.sgx.com/FileOpen/ISDN-FY20...eID=703948
FS :
https://links.sgx.com/FileOpen/ISDN-FY20...eID=703944
Presentation :
https://links.sgx.com/FileOpen/ISDN-FY20...eID=703946
I view this set of results as more or less in line with CIMB's forecast.
https://www.isdnholdings.com/analyst-reports-1
I believe the following somewhat supports the optimism surrounding ISDN's growth in the coming years :
1. Renewal of CCT with Maxon
The annual caps have been revised upwards quite significantly compared to the historical amounts. Although it may not be 1-to-1 relationship with ISDN's overall revenue/profit numbers, it nevertheless show the relentless business demand.
https://links.sgx.com/FileOpen/ISDN-Ann-...eID=695795
2. Appt of CTO
3. Construction of a new building to meet demand
4. Yaskawa also posted gd 3Q results(11 Jan 2022)
https://www.yaskawa-global.com/wp-conten...ifu_en.pdf
In addition, the commercialization of mini hydro (hopefully soon, sigh...) will contribute to its revenue.
Some Concerns / Issues ....
1. capital allocation i.e. more capital outlay for more hydro plants - going by the experiences of the 1st batch of plants, I am not sure whether this is a wise decision. furthermore, building more plants mean cash from next few years' profits will need to be utilized and unlikely flow to shareholders ...
2. profit margins seem a bit low
3. hope to see share buyback or insider share purchase since the prospects seem so good
4. too many disparate(my view) small biz e.g. stakes in training, disinfectant ...
5. earlier dividend payment date (AGM Apr, payment Aug - why ???)
6. renewal of independent directors (think a few > 15 yrs)
7. local Chinese competitors catch up with high end automation
8. semi-conductor cycle
9. Controlling shareholder relocate to China for next few years to maximize opportunities during this perhaps once-in-a-lifetime golden period for automation (personal wish haha)
........
Further reading :
1. ISDN Holdings : Powering Asia's Industrial Future
https://industrial-services-apac.themanu...id-41.html
2. China unveils 5-year plan for robotics, smart manufacturing amid global race
https://www.globaltimes.cn/page/202112/1243614.shtml
3. The Made in China Plan Is Back, and It’s Better
https://www.bloomberg.com/opinion/articl...automation