Innotek Limited (M14) AI Stock Analysis

• Market Cap: S$94.84M
• Dividend Yield: 4.88%
• Average Volume (3M): 391.21K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.74
• Revenue Growth: -6.51%
• EPS Growth: -30.16%
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 71
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): <0.01
• Shares Outstanding: 246,656,430
• 10 Day Avg. Volume: 232,560
• 30 Day Avg. Volume: 391,210
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: S$0.50
• Price Target Upside: 21.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: S$0.50 ▲(21.95% Upside)

Innotek Limited's overall stock score is driven by its solid financial performance, particularly its strong cash flow and low leverage. However, the technical analysis indicates potential overbought conditions, and the valuation suggests the stock may be overvalued. The attractive dividend yield provides a positive offset to the valuation concerns.

Positive Factors

Strong Cash Flow

The transition to positive free cash flow indicates effective cash management and operational efficiency, supporting long-term financial health and investment capacity.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities without excessive debt burden.

Revenue Growth

Consistent revenue growth reflects strong demand for the company's products and services, indicating a solid market position and potential for continued expansion.

Negative Factors

Declining Gross Profit Margin

A declining gross profit margin suggests rising costs or pricing pressures, which can erode profitability and impact the company's ability to invest in future growth.

High Capital Expenditures

Sustained high capital expenditures may strain cash reserves, potentially limiting financial flexibility and the ability to respond to market opportunities or challenges.

Low Net Profit Margin

A persistently low net profit margin indicates challenges in achieving profitability, which could hinder reinvestment in the business and affect long-term growth prospects.

Innotek Limited Business Overview & Revenue Model

Company Description

Innotek Limited (M14) is a manufacturing company that specializes in precision metal stamping and tooling. The company operates primarily in the automotive, consumer electronics, and office automation sectors. It provides high-quality components and engineering solutions that cater to a wide range of industrial applications.

How the Company Makes Money

Innotek Limited makes money through the production and sale of precision metal stamped components, tools, and dies to its clients in various industries. The company generates revenue by entering into contracts with automotive manufacturers, consumer electronics companies, and office automation firms, supplying them with customized and high-precision parts essential for their products. Its earnings are bolstered by its focus on high-value, technically demanding sectors, and its ability to maintain long-term relationships with key industry players. Innotek Limited might also benefit from strategic partnerships with other manufacturers and suppliers, enhancing its market reach and operational efficiency.

Innotek Limited Financial Statement Overview

Summary

Innotek Limited demonstrates a solid financial position with improving revenue and cash flow metrics. Despite challenges in maintaining margins and operational efficiency, the company benefits from low leverage and a strong equity base. Continued focus on cost management and operational improvements could enhance profitability and growth prospects.

Income Statement

Innotek Limited has shown a steady increase in revenue over the past year, with a revenue growth rate of 15.8% from 2023 to 2024. However, the company experienced a decline in gross profit margin from 16.0% in 2023 to 15.3% in 2024, indicating increased cost pressures. The net profit margin improved slightly to 2.4% in 2024 from 2.3% in 2023, but remains relatively low. EBIT and EBITDA margins have also decreased, suggesting challenges in operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.11 in 2024, indicating low leverage. The equity ratio is stable at 66.8%, reflecting a solid equity base. Return on equity improved to 3.3% in 2024 from 2.7% in 2023, showing better utilization of equity. However, the overall asset base has slightly decreased, which may limit future growth potential.

Cash Flow

Innotek Limited's cash flow position is robust, with a significant improvement in free cash flow from negative in 2023 to positive in 2024. The operating cash flow to net income ratio is strong at 3.29, indicating effective cash generation from operations. The free cash flow to net income ratio also turned positive, highlighting improved cash efficiency. However, capital expenditures remain high, which could impact future cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.27M	238.03M	205.56M	186.75M	173.58M	183.19M
Gross Profit	35.00M	36.44M	32.96M	27.19M	33.69M	45.01M
EBITDA	9.21M	22.26M	15.51M	15.59M	22.17M	31.83M
Net Income	4.37M	5.80M	4.66M	2.25M	11.51M	13.87M
Balance Sheet
Total Assets	278.12M	262.79M	264.08M	258.38M	267.04M	265.76M
Cash, Cash Equivalents and Short-Term Investments	64.93M	70.10M	70.28M	77.46M	90.70M	91.80M
Total Debt	25.13M	18.84M	24.20M	19.00M	23.90M	23.37M
Total Liabilities	104.03M	86.61M	90.75M	81.68M	77.20M	87.82M
Stockholders Equity	173.14M	175.50M	172.34M	176.70M	189.84M	177.94M
Cash Flow
Free Cash Flow	-477.00K	7.86M	-5.28M	-1.41M	5.14M	24.63M
Operating Cash Flow	14.78M	19.07M	7.84M	5.58M	12.32M	30.50M
Investing Cash Flow	-9.06M	-9.54M	-13.32M	-7.11M	-6.50M	3.05M
Financing Cash Flow	15.00K	-11.02M	-1.48M	-9.19M	-8.78M	-5.50M

Innotek Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:M14, the sentiment is Negative. The current price of 0.41 is above the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.41, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:M14.

Innotek Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
M14	66 Neutral	S$94.84M	31.06	1.81%	4.88%	-6.51%	-30.16%
Sector *	65 Neutral	$2.67B	14.71	12.46%	3.52%	2.94%	43.39%
1J4	―	S$103.36M	28.98	4.59%	―	―	―
B49	―	S$68.40M	43.75	-1.63%	―	―	―
ZB9	―	S$68.52M	7.18	10.32%	―	―	―
BQF	―	S$182.01M	7.13	36.56%	―	―	―
F13	―	S$76.20M	―	-7.80%	―	―	―

Innotek Limited Corporate Events

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.