SEHK:1656

Stock Analysis Report

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Executive Summary

ISDN Holdings Limited provides motion control, other specialized engineering solutions, and industrial computing solutions in Singapore, the People’s Republic of China, Hong Kong, Malaysia, and internationally.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has ISDN Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1656's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

52.6%

1656

2.8%

HK Electrical

1.2%

HK Market


1 Year Return

87.3%

1656

-3.5%

HK Electrical

5.4%

HK Market

Return vs Industry: 1656 exceeded the Hong Kong Electrical industry which returned -3.4% over the past year.

Return vs Market: 1656 exceeded the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

1656IndustryMarket
7 Day52.6%2.8%1.2%
30 Day78.0%-3.4%-4.4%
90 Day128.9%8.7%7.6%
1 Year90.9%87.3%-1.9%-3.5%9.7%5.4%
3 Year61.6%49.3%-42.5%-45.2%3.5%-7.6%
5 Yearn/a-53.4%-56.4%12.0%-6.8%

Price Volatility Vs. Market

How volatile is ISDN Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ISDN Holdings undervalued compared to its fair value and its price relative to the market?

16.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1656 (HK$2.06) is trading below our estimate of fair value (HK$2.47)

Significantly Below Fair Value: 1656 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1656 is poor value based on its PE Ratio (23.5x) compared to the HK Electrical industry average (10.8x).

PE vs Market: 1656 is poor value based on its PE Ratio (23.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1656 is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: 1656 is overvalued based on its PB Ratio (1.1x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is ISDN Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1656's forecast earnings growth (5.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1656's earnings (5.6% per year) are forecast to grow slower than the Hong Kong market (18.7% per year).

High Growth Earnings: 1656's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1656's revenue (3% per year) is forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Revenue: 1656's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1656's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has ISDN Holdings performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1656 has high quality earnings.

Growing Profit Margin: 1656's current net profit margins (3.6%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 1656's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 1656's earnings growth over the past year (72.7%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: 1656 earnings growth over the past year (72.7%) exceeded the Electrical industry 9.9%.


Return on Equity

High ROE: 1656's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is ISDN Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1656's short term assets (SGD220.1M) exceed its short term liabilities (SGD117.5M).

Long Term Liabilities: 1656's short term assets (SGD220.1M) exceed its long term liabilities (SGD17.7M).


Debt to Equity History and Analysis

Debt Level: 1656's debt to equity ratio (16.8%) is considered satisfactory.

Reducing Debt: 1656's debt to equity ratio has increased from 11.6% to 16.8% over the past 5 years.

Debt Coverage: 1656's debt is well covered by operating cash flow (55.4%).

Interest Coverage: 1656's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

Dividend

What is ISDN Holdings's current dividend yield, its reliability and sustainability?

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1656's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1656's dividend (1.01%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: 1656 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1656 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1656 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1656's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Cher Koon Teo (61 yo)

no data

Tenure

S$3,141,000

Compensation

Mr. Cher Koon Teo serves as the Managing Director and President of ISDN Holdings Limited and serves as its Executive Director since December 28, 2004. Mr. Teo joined ISDN Holdings Limited., subsidiary, Ser ...


CEO Compensation Analysis

Compensation vs Market: Cher Koon's total compensation ($USD2.29M) is above average for companies of similar size in the Hong Kong market ($USD231.54K).

Compensation vs Earnings: Cher Koon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Cher Koon Teo
Presidentno dataS$3.14m31.8%
SGD 304.7m
Deyang Kong
Senior VP of PRC Operations & Executive Director14.92yrsS$1.05m0.48%
SGD 4.6m
Ting Wai Ho
Chief Financial Officer3.5yrsno datano data
Jong Yuh Gn
Joint Company Secretary13.5yrsno datano data
Wing Yee Tung
Joint Company Secretary0.50yrno datano data
Ka Man Chow
Vice President of Hong Kong Operations & Managing Director of Servo Dynamics (HK) Limited24.58yrsno datano data

8.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 1656's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cher Koon Teo
Presidentno dataS$3.14m31.8%
SGD 304.7m
Deyang Kong
Senior VP of PRC Operations & Executive Director14.92yrsS$1.05m0.48%
SGD 4.6m
Siang Kai Lim
Independent Non Executive Chairmanno dataS$53.00kno data
Beng Keng Soh
Independent Non-Executive Director14.92yrsS$42.00kno data
Soon Liang Tan
Independent & Non-Executive Director4yrsS$42.00kno data
Hsiang-Wen Toh
Non-Executive Director1.25yrsS$27.00kno data

14.9yrs

Average Tenure

60yo

Average Age

Experienced Board: 1656's board of directors are seasoned and experienced ( 14.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ISDN Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ISDN Holdings Limited
  • Ticker: 1656
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: S$169.681m
  • Listing Market Cap: S$958.228m
  • Shares outstanding: 429.57m
  • Website: https://www.isdnholdings.com

Number of Employees


Location

  • ISDN Holdings Limited
  • No. 01-30 KB Industrial Building
  • No. 10 Kakit Bukit Road 1
  • Singapore
  • 416175
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
I07SGX (Singapore Exchange)YesOrdinary SharesSGSGDNov 2005
I8DDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2005
1656SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2005

Biography

ISDN Holdings Limited provides motion control, other specialized engineering solutions, and industrial computing solutions in Singapore, the People’s Republic of China, Hong Kong, Malaysia, and internation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 12:46
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.