CGS-CIMB Research analyst William Tng has maintained his “buy” call and raised his target price on ISDN Holdings slightly to 85 cents from 84.4 cents, due to a positive outlook for the company.

ISDN reported 1HFY2021 revenue rose 29.9% y-o-y to $217.2 million, with Tng calling it “better than expected.”

This continued to be mainly driven by its core Industrial Automation (IA) business, which made up 97.9% of its revenue. But despite the 44.5% y-o-y increase in revenue for the IA segment, gross profit margin only improved marginally by 0.1% to 27.2% in 1HFY2021 for the IA segment vs. 27.1% in 1HFY2020. 

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