ISDN Holdings - CGS-CIMB Research 2021-09-13: Light At The End Of The Tunnel

ISDN HOLDINGS LIMITED (SGX:I07) | SGinvestors.io ISDN HOLDINGS LIMITED (SGX:I07)

ISDN Holdings - Light At The End Of The Tunnel

  • ISDN (SGX:I07) started its foray into the mini-hydropower plant business in Indonesia around 2012-2013.
  • Last week, ISDN announced that 2 of its mini-hydropower plants have been commissioned. The next step is to obtain permits for commercial operations.
  • If successful, the mini-hydropower business could be EPS accretive for FY22F-23F. Spinning off this business is also a possibility.



2 mini-hydropower plants commissioned

  • ISDN’s hydropower plants in Anggoci (10MW capacity) and Sisira (4.6MW capacity) successfully passed commissioning last week and have been hooked to the municipal grid. These plants are in North Sumatra, Indonesia.
  • The next step is for ISDN to obtain permits for full commercial operations, which it targets to achieve by end-2021.
  • ISDN also said that the third mini-hydropower plant of 10MW capacity at Lau Biang continues to make good progress towards commissioning by the first half of 2022.


Additional earnings stream for FY22F-23F

  • We have not held via its 67.1% owned subsidiary, AEnergy Holdings Company Limited (Not Listed).


Reiterate ADD rating on ISDN






William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2021-09-13
SGX Stock Analyst Report ADD MAINTAIN ADD 0.850 SAME 0.850



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