Summary:
- ISDN revenues are highly leveraged to Chinese economy targeting Industrial Automation.
- Recent efforts to diversify into higher margin Hydro-Electric portfolio enhances its investment case but ongoing Indonesian geo-political concerns is weighing down its shares.
- ISDN currently trades at FY26F 15.6x PE, 0.2x PEG and 2.2x EV/EBITDA. RHTC initiate coverage on ISDN Holdings with BUY recommendation, target price of $0.73 (average SOTP & TSR) and potential +22% upside.
