ISDN

ISDN: UOBK has an unrated report. Notes the group's diversification into energy is now on high gear. ISDN aims to develop a series of MHPPs in the underserved Sulawesi and sumatra islands. It has secured 3 MHPP projects in Sulawesi with a combined installed capacity of 18 MW. The house estimates these could generate US$7-9m in revenue annually. Construction will begin in early '14 and will take 18-24 mths per plant. ISDN will have 40-80% stakes in these projects. ISDN has partnerships via MOUs with i) China Huadian Engineering, a state-owned enterprise, on energy-related projects in SE Asia, and ii) IDI infrastructures, a Japanese fund mgr with energy infrastructure-focused funds to explore opportunities to develop and invest in energy projects in Asia. ISDN trades at 75x FY12 P/E and 5x P/B