SINGAPORE: ISDN Holdings Limited, a leading multi-industry corporation providing motion control, engineering solutions and industrial computing solutions, reported net profit attributable to shareholders of S$4.2million for the three months ended 31 March 2019.[the_ad id=”32940″]Revenue from the Group’s core engineering solutions increased 3.5% from 4Q2018 as the Group’s diverse customer base helped it weather soft macroeconomic conditions arising from global trade tensions. Revenue was down 3.4% YoY on the back of a record-high 1H2018 performance last year.
In 1Q2019, ISDN observed greater growth in emerging markets such as Malaysia and Vietnam, as well as growth in certain diversified end-segments such as Medical and Information technology. The Group also recognized revenue from its nascent renewable energy business of S$1.9million.
Gross profit for 1Q2019 decreased 2.7% YoY to S$18.8 million with gross margin at 24.9%. Excluding gross profit from the construction of two mini-hydropower plants, the Group maintained core engineering solutions gross margins at 25.4%.
Operating expenses increased7.7% YoY to S$13.5 million for 1Q2019. Distribution costs decreased slightly while administrative expenses increased as a result of the consolidation of Aenergy Subgroup (hydropower investment holdings), and increases in salaries and bonuses, office and administrative expenses and professional fees.
As a result, the Group reported a profit attributable to shareholders of S$4.2 million for 1Q2019 compared to S$5.2 million for 1Q2018.
Teo Cher Koon, ISDN’s Managing Director and President, said, “Over the longer term, we will continue to deepen our presence in China and also look to the rest of the Asia Pacific region to drive diversified demand for our engineering solutions as industrial automation is increasingly embraced in many sectors across Asia to boost productivity and move up the value chain. While the outlook for the foreseeable future for businesses in general may be affected by geopolitical tensions, we have our ears to the ground and are working closely with our customers to increase earnings visibility and mitigate any downside. We also expect to gain traction on renewable energy business in the quarters ahead as our first few mini-hydropower plants come on stream in Indonesia. This will also help to provide greater earnings consistency.”