Innotek Limited (M14) AI Stock Analysis

• Market Cap: S$196.61M
• Dividend Yield: 3.12%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 64.4
• Beta (1Y): 0.67
• Revenue Growth: -6.51%
• EPS Growth: -30.16%
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): <0.01
• Shares Outstanding: 246,656,430
• 10 Day Avg. Volume: 4,250,800
• 30 Day Avg. Volume: 1,724,573
• PEG Ratio: 0.71
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: S$0.94 ▲(42.88% Upside)

The score is held back primarily by weakening financial performance (negative revenue growth, declining margins, and negative EBIT) and a very high P/E valuation. These risks are partially offset by a strong technical uptrend (price above key moving averages with positive MACD) and a conservative balance sheet with low leverage.

Positive Factors

Conservative balance sheet

Very low leverage and a strong equity base give the company durable financial flexibility. This conservatism lowers default risk, supports funding for R&D or capex without heavy borrowing, and preserves resilience through industry cycles over the next 2–6 months.

Diversified recurring revenue mix

A mix of software licensing and service contracts provides recurring, higher‑margin revenue while hardware sales diversify streams. This combination reduces reliance on single products, smooths cash flows, and supports sustainable revenue generation and cross‑sell opportunities.

Strategic industry partnerships

Partnerships with major telcos and tech firms strengthen distribution, accelerate enterprise adoption, and create competitive advantages. Such alliances enable larger contracts, faster scale of deployments, and more predictable revenues versus purely direct sales.

Negative Factors

Negative revenue trend

Declining top‑line growth erodes scale economics and pressures fixed cost absorption, making it harder to invest in products or sales. Continued revenue contraction over several quarters risks lower bargaining power, margin compression, and declining market share.

Weak and shrinking profitability

Very slim net margins and a negative EBIT margin indicate operating inefficiencies or pricing pressure. Sustained weak profitability limits reinvestment capacity, reduces returns to shareholders, and makes the business more vulnerable to cost shocks or competitive pricing moves.

Declining cash generation

Negative FCF growth and a low OCF-to-net‑income ratio signal worsening cash conversion. Reduced cash generation constrains funding for capex, R&D, and dividends, increasing reliance on external financing and limiting the company’s ability to pursue strategic investments.

Innotek Limited Business Overview & Revenue Model

Company Description

InnoTek Limited, an investment holding company, operates as a precision metal components manufacturer in Singapore, Hong Kong, the People's Republic of China, and Thailand. Its Precision Components and Tooling Segment provides stamping components, and tooling design and fabrication services to automotive components, office automation, and consumer electronics products industries. This segment also offers die making services to manufacturers. Its Precision Machining segment engages in the machining of products for the TV and office automation industries; and provision of metal-related components for customers in TV, tablet, and mobile-phone industries. The company was formerly known as Magnecomp International Limited and changed its name to InnoTek Limited in November 2007. InnoTek Limited was incorporated in 1995 and is based in Singapore.

How the Company Makes Money

Innotek Limited generates revenue through a diversified business model that includes software licensing, hardware sales, and service contracts. The company earns a significant portion of its income from licensing its proprietary software solutions to enterprises, which allows clients to enhance their operational efficiencies. Additionally, Innotek sells hardware products, including telecommunications equipment and electronic components, directly to consumers and businesses. Service contracts for maintenance and support also contribute to recurring revenue streams. Strategic partnerships with major telecommunications providers and technology firms further bolster their market presence and revenue opportunities.

Innotek Limited Financial Statement Overview

Summary

Financial performance is mixed: revenue growth is negative (-4.16% TTM) and profitability has weakened (net margin down to 1.39% and EBIT margin at -0.47%). The balance sheet is a relative strength with low leverage (debt-to-equity 0.10), but returns are low and declining (ROE 1.80%). Cash generation is moderate but slipping, with free cash flow growth at -4.83% TTM.

Income Statement

Innotek Limited's income statement shows a decline in revenue growth with a negative rate of -4.16% in the TTM period, indicating potential challenges in maintaining sales momentum. The gross profit margin has slightly decreased to 14.92% from 15.31% in the previous year, reflecting pressure on cost management. The net profit margin has also declined to 1.39% from 2.44%, suggesting reduced profitability. The EBIT margin turned negative at -0.47%, highlighting operational challenges. Overall, the income statement reflects a need for strategic improvements to enhance revenue and profitability.

Balance Sheet

The balance sheet of Innotek Limited shows a stable debt-to-equity ratio of 0.10, indicating a conservative leverage position. The return on equity (ROE) has decreased to 1.80% from 3.30%, suggesting reduced efficiency in generating returns for shareholders. The equity ratio remains strong, reflecting a solid capital structure. While the company maintains a healthy balance sheet, the declining ROE points to potential inefficiencies that need addressing.

Cash Flow

Innotek Limited's cash flow statement reveals a decline in free cash flow growth at -4.83% in the TTM period, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is 0.27, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.47, reflecting a reasonable level of cash generation relative to net income. While cash flow management shows some strengths, the negative growth in free cash flow highlights areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	219.01M	238.03M	205.56M	186.75M	173.58M	183.19M
Gross Profit	32.67M	36.44M	32.96M	27.19M	33.69M	45.01M
EBITDA	5.05M	22.26M	15.51M	15.89M	22.89M	32.10M
Net Income	3.05M	5.80M	4.66M	2.25M	11.51M	13.87M
Balance Sheet
Total Assets	251.59M	262.79M	264.08M	258.38M	267.04M	265.76M
Cash, Cash Equivalents and Short-Term Investments	61.52M	70.10M	70.28M	77.46M	90.70M	91.80M
Total Debt	17.18M	18.84M	24.20M	19.00M	23.90M	23.37M
Total Liabilities	87.50M	86.61M	90.75M	81.68M	77.20M	87.82M
Stockholders Equity	163.78M	175.50M	172.34M	176.70M	189.84M	177.94M
Cash Flow
Free Cash Flow	10.01M	7.86M	-5.24M	-1.41M	5.14M	24.63M
Operating Cash Flow	21.43M	21.54M	7.84M	5.58M	12.32M	30.50M
Investing Cash Flow	-10.94M	-9.54M	-13.32M	-7.11M	-6.50M	3.05M
Financing Cash Flow	-13.09M	-11.02M	-1.48M	-9.19M	-8.78M	-5.50M

Innotek Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:M14, the sentiment is Positive. The current price of 0.66 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.69, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:M14.

Innotek Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
M14	55 Neutral	S$196.61M	64.39	1.81%	3.12%	-6.51%	-30.16%

Innotek Limited Corporate Events

InnoTek Limited Announces Board Committee Restructuring

InnoTek Limited has announced changes to its Board Committees effective from November 12, 2025. The reconstitution includes the appointment of Mr. Neal Manilal Chandaria to the Remuneration Committee, Mr. Ng Hin Lee’s redesignation as Chairman of the Nominating Committee, and Mr. Hideaki Miyazawa’s appointment to the Nominating Committee. These changes reflect the company’s ongoing efforts to strengthen its governance structure.

The most recent analyst rating on (SG:M14) stock is a Hold with a S$1.00 price target. To see the full list of analyst forecasts on Innotek Limited stock, see the SG:M14 Stock Forecast page.