Whizpace is an unlisted spin-off company of Agency for Science, Technology and Research (A*STAR).
The partnership will help ISDN extend the reach of its Industrial Automation solutions into new areas where intelligent devices are connected over wide spaces such as farms, oil fields, ships, forests and mines.
Whizpace’s patented TV band connectivity (Super Wifi), fills a gap in ISDN’s portfolio of industrial connectivity technologies by allowing the latter to deliver automation solutions to farming, transportation, utilities and other wide-area industrial operations.
Separately, ISDN’s hydropower plant projects in Indonesia remains a year-end goal, with the company hoping that two out of its three hydropower projects under construction will be ready for commercial operations in end-2021.
As at end-December 2020, ISDN has invested some $76.8 million into the hydropower plants, of which about 64% is equity funded and 36% funded by debt.
Tng’s maintained target price is based on 12.5 times the Singapore tech sector’s 2022 average price-to-earnings (P/E). The sector’s P/E is currently averaging around 14.0 times.
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“Potential re-rating catalysts could come from stronger-than-expected sales orders for its mainstay industrial automation business and profit contribution from its hydropower segment,” Tng writes in a June 23 report.
“Downside risks are order delays, cost overruns in its hydropower business and any disruption to business activities due to the ongoing Covid-19 pandemic,” he adds.
As at 4.32pm, shares in ISDN are trading 4.5 cents higher or 6.5% up at 74 cents, or 1.49 times P/B, according to CGS-CIMB’s estimates.
Photo: ISDN
