It is also capable of offering complete Industrial 4.0 solutions to manufacturers, CGS-CIMB adds.
Citing management, CGS-CIMB notes that the company hopes to improve its net profit margin of 7.7% in 1H20 to 10%.
This will come on the back of offering better solutions and increasing the software content offered in such solutions, says CGS-CIMB.
The brokerage has kept its “add” rating for the stock with an unchanged target price of 50.1 cents.
“Potential re-rating catalysts for the stock could come from stronger-than-expected sales orders for its mainstay IA, and profit contribution from its hydropower segment,” CGS-CIMB analyst William Tng writes in a note dated Sept 21.
As at 12.55 pm, ISDN was up 0.5 cent or 1.4% at 36.5 cents with 1.7 million shares changed hands.
