Nera Telecommunications Ltd (N01) AI Stock Analysis

• Market Cap: S$34.74M
• Dividend Yield: 5.21%
• Average Volume (3M): 86.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -30.66%
• EPS Growth: -150.98%
• Country: SG
• Employees: 294
• Sector: Technology
• Sector Strength: 81
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 361,897,000
• 10 Day Avg. Volume: 158,980
• 30 Day Avg. Volume: 86,293
• PEG Ratio: 0.08
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.74
• 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

• Rating: 52 Neutral
• Price Target: S$0.00 ▼(-100.00%Downside)

Nera Telecommunications Ltd's stock faces significant challenges primarily due to its poor financial performance, with declining revenues and negative net income. Despite strong technical indicators suggesting bullish momentum, the overbought signals and negative valuation metrics weigh negatively on the overall score. The lack of earnings call data and corporate events did not affect the score.

Nera Telecommunications Ltd Business Overview & Revenue Model

Company Description

Nera Telecommunications Ltd designs, engineers, distributes, sells, services, installs, and maintains telecommunication systems and products in transmission networks and satellite communications and information technology networks. It operates through two segments, Wireless Infrastructure Networks (WIN) and Network Infrastructure (NI). The WIN segment provides microwave radios; radio access network, such as small cell solutions, in-building solutions, network optimization, and other RF services; and wireless fidelity services. This segment also offers professional services, including wireless network design and implementation, project management professional services, and it and network consultancy services. The NI segment offers IP Solutions comprising CPE / vCPE, metro ethernet aggregation, residential and business edge, data center edge DCI, converged edge / core, and edge / core core, as well as project coordination, installation, testing and commissioning, training, and after-sales technical support services; technology driven and carrier grade optical network platform solutions, consisting of metro DWDM, long haul DWDM, legacy PCM, SDH, packet, IP and FTTx, data center interconnect, mobile and mobile fronthaul, and FFTx Solutions; private and hybrid cloud solutions; and network security solutions, such as firewalls, DDoS, malware solution, DNS security, public-key infrastructure, forward and reverse proxy, deep packet inspection, and vulnerability management and penetration test solutions. It operates in Singapore, Malaysia, the Philippines, Indonesia, Thailand, Australia, Pakistan, Morocco, Europe, the Middle East, Africa, and internationally. The company was incorporated in 1978 and is headquartered in Singapore.

How the Company Makes Money

Nera Telecommunications Ltd generates revenue through the sale and implementation of its telecommunications products and services. Key revenue streams include the provision of wireless broadband solutions, satellite communications systems, and network infrastructure equipment. These offerings are customized for clients across different industries, allowing the company to capture diverse market segments. Additionally, Nera Telecommunications engages in service contracts and maintenance agreements, providing ongoing technical support and system upgrades. The company may also benefit from strategic partnerships with technology providers and government contracts, further bolstering its revenue.

Nera Telecommunications Ltd Financial Statement Overview

Summary

Nera Telecommunications Ltd faced significant financial challenges in 2024, with declining revenues and margins leading to net losses. Although there was a slight improvement in the debt-to-equity ratio, cash flow issues persist, with free cash flow turning negative. The company needs to address operational inefficiencies to improve its financial health.

Income Statement

Nera Telecommunications Ltd has seen declining revenue, down from $141.7M in 2023 to $98.2M in 2024, a drop of 30.7%. Gross profit margin decreased to 24.8% from 22.0% the previous year. The company reported a negative net income in 2024, leading to a negative net profit margin of -2.9%. EBIT and EBITDA margins were also negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio improved slightly to 0.35 in 2024 from 0.39 in 2023, indicating a slight reduction in financial leverage. However, the equity ratio decreased to 37.9% from 36.7%, showing a reduction in equity financing. The return on equity is negative due to net losses, which is concerning for investors.

Cash Flow

Free cash flow turned negative in 2024 at -$219,000, down from $6.5M in 2023, indicating liquidity issues. Operating cash flow to net income ratio is negligible due to minimal positive cash flow and negative net income. These factors suggest cash management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
98.25M	141.69M	132.53M	102.61M	131.12M
	Gross Profit
24.41M	31.24M	29.58M	19.52M	29.83M
	EBIT
-3.78M	4.58M	-781.00K	-12.82M	5.80M
	EBITDA
-1.07M	7.66M	-2.31M	-12.70M	6.97M
	Net Income Common Stockholders
-2.81M	5.67M	-7.29M	-15.99M	2.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.30M	20.62M	18.20M	23.50M	23.12M
	Total Assets
110.45M	126.83M	152.41M	152.03M	162.35M
	Total Debt
14.51M	17.95M	26.94M	33.22M	32.79M
	Net Debt
3.92M	-2.67M	8.74M	10.37M	10.33M
	Total Liabilities
68.54M	80.25M	111.34M	105.49M	96.09M
	Stockholders Equity
41.91M	46.58M	41.06M	46.54M	66.26M
Cash Flow		Free Cash Flow
-219.00K	6.49M	7.11M	-1.06M	760.00K
	Operating Cash Flow
59.00K	7.91M	7.64M	-514.00K	3.13M
	Investing Cash Flow
96.00K	5.14M	-89.00K	898.00K	-2.12M
	Financing Cash Flow
-6.68M	-9.97M	-12.11M	640.00K	9.18M

Nera Telecommunications Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:N01, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 80.57 is Negative, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:N01.

Nera Telecommunications Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CC3	68 Neutral	$1.96B	12.71	40.65%	7.20%	-0.23%	11.17%
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%
N01	52 Neutral	S$34.74M	―	-6.35%	5.21%	-30.66%	-150.98%

Nera Telecommunications Ltd Corporate Events

Nera Telecommunications Shifts to Half-Yearly Financial Reporting

Nera Telecommunications Ltd has announced that it will cease issuing quarterly business updates following amendments to Listing Rule 705, which no longer require such reporting. The company will now report financial results on a half-yearly basis, aligning with regulatory requirements, while continuing to fulfill its disclosure obligations to keep shareholders informed of significant developments.

Nera Telecommunications Updates on Legal Proceedings Involving Thai Subsidiary

Nera Telecommunications Ltd has provided updates on ongoing legal proceedings involving its subsidiary, Nera (Thailand) Limited, and ABN Infinity Service (Thailand) Co., Ltd. The Appeal Court has held ABN and its directors liable for a bounced cheque, with a final appeal pending in the Supreme Court. A second bounced cheque resulted in a verdict against ABN, with no further appeals filed. Additionally, a charge against Nera (Thailand) Limited by ABN was dismissed due to non-attendance by ABN’s directors. These developments could impact Nera’s legal standing and financial obligations in Thailand.

Nera Telecommunications Ltd Announces Ennoconn as New Majority Shareholder at AGM

During the Annual General Meeting, Nera Telecommunications Ltd introduced Ennoconn Corporation as its new majority shareholder, highlighting the strategic support Ennoconn could provide. The meeting also covered the company’s financial performance for 2024 and outlined corporate strategies for 2025, indicating a focus on growth and development.

Nera Telecommunications Ltd Holds EGM on General Mandate Proposal

Nera Telecommunications Ltd held an Extraordinary General Meeting (EGM) to discuss the Proposed Adoption of the General Mandate for Interested Person Transactions. The meeting was chaired by Mr. Basil Chan and included a presentation by legal advisers from Lee & Lee. Shareholders voted electronically on the resolution, with the process overseen by appointed scrutineers and polling agents.

Nera Telecommunications Ltd Prepares for Smooth AGM and EGM

Nera Telecommunications Ltd announced that it has not received any substantial questions from shareholders regarding the Ordinary Resolutions outlined in the Notices of its upcoming Annual General Meeting and Extraordinary General Meeting. This indicates a smooth proceeding for the meetings scheduled to take place on April 29, 2025, which may reflect positively on the company’s operational stability and shareholder relations.

Nera Telecommunications Announces Key Board Changes

Nera Telecommunications Ltd announced significant changes in its board of directors, with Mr. Chong Hoi Ming resigning as CEO and Mr. Chu, Fu-Chuan being re-designated as Executive Chairman and Executive Director. These changes, effective from April 8, 2025, are expected to influence the company’s management and global business development strategy.

Nera Telecommunications Subsidiary Settles Lease Dispute

Nera Telecommunications Ltd announced the completion of a settlement by its subsidiary, Nera Malaysia, with Great One Coconut Products Industries regarding a lease agreement dispute. The settlement involved a payment of RM250,000, partially offset by a deposit, resulting in the withdrawal of the lawsuit. The resolution is not expected to impact the company’s operations or financial performance for the year ending December 2025.

Nera Telecommunications Completes Winding Up of Dormant Subsidiary

Nera Telecommunications Ltd has completed the voluntary winding up of its dormant subsidiary, Nera Telecommunications (Myanmar) Co., Ltd. This action is not expected to affect the company’s net tangible assets or earnings per share for the financial year ending December 31, 2025. The winding up does not involve any direct or indirect interest from the company’s directors or substantial shareholders, aside from their shareholdings.