ISDN Holdings, which is a proxy to the Industrial 4.0 revolution, has continued to be a favourite of CGS-CIMB Research.
The brokerage highlights that the engineering company’s industrial automation (IA) solutions business is now able to meet the hardware and software requirements of clients.
It is also capable of offering complete Industrial 4.0 solutions to manufacturers, CGS-CIMB adds.
Citing management, CGS-CIMB notes that the company hopes to improve its net profit margin of 7.7% in 1H20 to 10%.
This will come on the back of offering better solutions and increasing the software content offered in such solutions, says CGS-CIMB.
The brokerage has kept its “add” rating for the stock with an unchanged target price of 50.1 cents.
“Potential re-rating catalysts for the stock could come from stronger-than-expected sales orders for its mainstay IA, and profit contribution from its hydropower segment,” CGS-CIMB analyst William Tng writes in a note dated Sept 21.
As at 12.55 pm, ISDN was up 0.5 cent or 1.4% at 36.5 cents with 1.7 million shares changed hands.
