Isra Vision: +30.3%

SINGAPORE (June 26): Frankfurt-listed Isra Vision is a developer and manufacturer of software and systems for the image processing and machine vision industry. To recap, Isra operates two main segments: the surface vision segment which covers quality and surface inspection; and the industrial automation segment which covers robot vision in automated production. Isra was one of the top performers in our portfolio with a 30.3% return for the six-month period and easily outperformed the other two benchmark indices, the MSCI Europe and Deutsche Boerse, which lost 13.3% and 9.2% respectively.

Covid-19 is having a negative impact on the company as it interrupts its long-term growth. Nevertheless, the company is betting on a trend reversal over the next two quarters. Isra’s performance and financial results are very much tied to the performance of its customers, and management has cited a lot of uncertainty for the upcoming financial quarter. In its latest 2QFY2019/2020 earnings report, the company reported that Covid-19 restrictions in Asia from January led to a decline in orders. Customers also asked for orders made earlier to be deferred. Towards the end of the second quarter, customers in America and Europe followed suit as well. However, there is a silver lining: there were hardly any cancellations.

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