ISDN posts 9% fall in H1 net profit to S$11.1 million
Kelly Ng
ISDN HOLDINGS reported a net profit of S$11.1 million for the first half of the year ending Jun 30, 2022, down 9.1 per cent from the S$12.2 million earnings in the year-ago period.
Revenue for H1 was down 12.2 per cent to S$190.7 million, from S$217.2 million a year ago. Cost of sales was down 14.1 per cent from S$159 million to S$136.6 million.
The engineering company’s management attributed the decrease in revenue to business disruptions due to stringent Covid-19 lockdowns in China, particularly in April and May this year. However, this was partially offset by “strong financial performance” in the group’s other geographical markets, including Singapore, it said in an interim report filed with the Singapore bourse on Thursday (Sep 29).
The group said its order book has stabilised after April and May, but forward visibility remains limited - a reflection of the generally volatile economic conditions across Asia.
Nevertheless, it said it continues to witness broad-based and long-term demand for industrial automation solutions in China and the South-east Asian countries where it operates. These include Singapore, Malaysia, Indonesia, Thailand, and Vietnam.
In particular, the group added that it has continued to see long-term demand from Asian businesses seeking industrial automation to relieve labour wage pressure, advance manufacturing capabilities and reduce business risk.
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It also noted that its emerging hydropower generation business in Indonesia is making progress towards commercialisation, with 2 of its 3 hydropower plants on track to start commercial operations.
The group’s other operating income for H1 fell 32.2 per cent to S$2 million, which it said was due mainly to the absence of net foreign exchange gain. This was partially offset by an increase in the writeback of allowances.
No interim dividend was declared for the period.
ISDN shares ended Thursday up 1.2 per cent or S$0.005 at S$0.43.
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