Brokers' take

ISDN Holdings | Buy (Initiate coverage) June 15 close: S$0.235 Target price: S$0.35 UOB Kay Hian Research, June 15

ISDN boasts close to 30 years of experience as an integrated engineering solutions provider. Frost & Sullivan puts the company as the No 1 and No 4 players in motion control (which involves high entry barriers such as technical knowledge, industry partners and human capital required) in Singapore and China respectively. With the World Semiconductor Trade Statistics forecasting an 11.5 per cent year-on-year market growth in 2017, ISDN should benefit, thanks to its downstream semiconductor customers.

In particular, China's version of Industry 4.0 - "Made in China 2025" - will be the wave to carry ISDN forward, given its exposure to the world's factory.