Innotek Limited (M14) AI Stock Analysis

• Market Cap: S$164.23M
• Dividend Yield: 2.86%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 53.8
• Beta (1Y): 0.62
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: S$0.50 ▼(-28.57% Downside)

Innotek Limited's stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability margins. While technical analysis shows bullish momentum, the high P/E ratio suggests potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Innotek Limited Business Overview & Revenue Model

Company Description

Innotek Limited (M14) is a forward-thinking technology company specializing in innovative solutions across various sectors including telecommunications, information technology, and electronics. The company is dedicated to developing cutting-edge products and services that enhance connectivity and streamline operations for businesses and consumers alike. Their core offerings include advanced software applications, telecommunications infrastructure, and electronic components designed to meet the evolving needs of the digital age.

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

Innotek Limited faces challenges in revenue growth and profitability, with declining margins and negative revenue growth in the TTM period. The balance sheet is strong with low leverage, but declining ROE suggests inefficiencies. Cash flow management shows moderate efficiency, but negative free cash flow growth indicates areas for improvement.

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: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.7 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.52, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.42 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 *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
M14	―	S$164.23M	53.79	1.81%	2.86%	-6.51%	-30.16%

Innotek Limited Corporate Events

InnoTek Secures Vendor Approval with NVIDIA and IEIT for AI Projects

InnoTek Limited has been approved as a recommended vendor for NVIDIA and IEIT Systems, highlighting its expertise in precision machining for the AI industry. The company has secured initial orders for NVIDIA’s products and a new project with IEIT, marking significant advancements in its operations and industry positioning. Production for these projects is expected to commence in the fourth quarter of FY2025, potentially enhancing InnoTek’s market presence and stakeholder value.

InnoTek Limited Strengthens Board with New Appointments

InnoTek Limited has announced key changes to its board with the appointment of Mr. Hideaki Miyazawa as an Independent Director and Mr. Ng Hin Lee as the Lead Independent Director, effective from August 12, 2025. These appointments are expected to strengthen the company’s governance structure, with Mr. Ng continuing his roles in the Audit & Risk Management Committee and other committees, potentially enhancing the company’s strategic oversight and stakeholder confidence.