Innotek Limited (M14) AI Stock Analysis

• Market Cap: S$166.54M
• Dividend Yield: 3.01%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 54.5
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: S$1.00 ▲(51.52% Upside)

Innotek Limited's overall stock score is primarily influenced by its financial performance challenges, including declining revenue growth and profitability. The technical analysis shows a bullish trend, but the high RSI suggests caution due to potential overbought conditions. The high P/E ratio indicates overvaluation, which could limit future stock price appreciation. Investors should be cautious and consider the company's need for operational improvements.

Positive Factors

Diversified Revenue Streams

A diversified revenue model reduces dependency on a single income source, enhancing resilience against market fluctuations and supporting long-term stability.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Strategic Partnerships

Collaborations with industry leaders enhance market reach and credibility, potentially leading to increased sales and innovation over the long term.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market penetration and sales momentum, which could hinder long-term business expansion and profitability.

Decreasing Profit Margins

Shrinking profit margins reflect cost pressures and competitive challenges, potentially impacting the company's ability to reinvest in growth and innovation.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests difficulties in generating cash from operations, which could limit the company's ability to fund new projects and manage debt.

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

Innotek Limited faces challenges in revenue growth and profitability, as evidenced by declining margins and negative revenue growth in the TTM period. The balance sheet remains strong with low leverage, but declining ROE suggests potential inefficiencies. Cash flow management shows moderate efficiency, but negative free cash flow growth indicates areas for improvement. Overall, the company needs to focus on enhancing operational efficiency and revenue generation to improve its financial performance.

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: Neutral
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:M14, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.66, and above the 200-day MA of 0.46, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	54 Neutral	S$166.54M	54.55	1.81%	3.01%	-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.

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.