Question 1: Are you aware of any information not previously announced concerning you (the issuer), your subsidiaries or associated companies which, if known, might explain the trading? - If yes, the information must be announced immediately.
The Company is not aware of any information not previously announced concerning the Company, its subsidiaries or associated companies which might explain the trading activity and decrease in the price of the Company’s shares.
Question 2: Are you aware of any other possible explanation for the trading?
The Company is not aware of any other possible explanation.
Question 3: Can you confirm your compliance with the listing rules and, in particular, listing rule 703?
The Company confirms that it is in compliance with the listing rules and, in particular, listing rule 703.
http://infopub.sgx.com/FileOpen/ISDN-Ann_ResponsetoSGXQuery_04.10.13.ashx?App=Announcement&FileID=258608
Our view:
ISDN’s share price declined by 10% to S$1.02 after query regarding trading activity from SGX today. Similarly, ISDN share price has surged almost 7-8 folds YTD, as we believe the decline could be due to the spillover effect from Blumont, Asiasons and Liongold. ISDN shares surged due to it successfully diversifying its business into the Energy sector and to date, the group has revealed plans to develop a series of hydropower plants amounting to 42 MW, excluding the 126 MW Laa River hydropower facilities in Sulawesi, Indonesia. Securing in-principle approval for the 126 MW Laa River hydropower plant would mean ISDN could exceed its original target of 100 MW, earlier than FY2014. Our last fair value of S$0.24 (12/Mar/2013) was excluding it power business projection. Despite this, we view its share price as not compelling in the near-term, as we are still reviewing the impact of its new hydropower business and coal power. We maintain our Neutral recommendation.