ISDN Holdings Q3 net profit surges by 57% to S$8.6 million

MAINBOARD-LISTED ISDN Holdings I07 : I07 0%posted a 56.8 per cent rise in net profit to S$8.6 million for its third quarter ended Sep 30, 2021, from S$5.5 million a year ago.

In its voluntary update of its financial results on Friday (Nov 12), the engineering solutions provider noted that this was its most profitable quarter in its history, with profit margins for the quarter improving to 11.3 per cent from 7.1 per cent a year earlier.

The company attributed this to its diversification into growth industries. These include semiconductors, aerospace, infrastructure and precision manufacturing, where it sees industrial automation as a disruptive long-term growth opportunity.

In the third quarter, ISDN's clean energy industries group successfully commissioned 2 of 3 hydropower plans in early September. The company also expanded its solutions portfolio by deepening its advanced engineering solutions, growing industrial systems projects, expanding industrial Internet-of-things (IoT) connectivity and advancing its software and cloud solutions.

The company also reported a 10.2 per cent increase in revenue in the same period to S$106.7 million, from S$96.8 million the year before.

In its outlook for the post-Covid-19 industrial economy, ISDN noted that the global semiconductor shortage and emerging semi supercycle should contribute to growth momentum in semiconductors and the ongoing shift to advanced integrated circuit (IC) manufacturing and packaging, benefitting the group's semiconductor segment.

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ISDN managing director and president Teo Cher Koon said that the company's clean industry portfolio of solutions is well-positioned to serve companies that wish to be more sustainable.

"Our approach has already helped improve our standing with customers and investors who are increasingly looking for companies that represent long-term alignment with a sustainable future, and we believe this will continue to grow in importance in the years to come," he said.

For the 9 months ended Sep 30, 2021, net profit rose 37.9 per cent to S$20.8 million year-on-year, while revenue climbed 22.7 per cent to S$323.8 million in the same period.

Shares of ISDN closed at S$0.65, up S$0.03 or 4.8 per cent, on Friday before the business update was released.