Nera Telecommunications Ltd (N01) AI Stock Analysis

• Market Cap: S$33.66M
• Dividend Yield: 5.38%
• Average Volume (3M): 107.94K
• 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: 94
• Industry: Communication Equipment
• EPS (TTM): -0.01
• Shares Outstanding: 361,897,000
• 10 Day Avg. Volume: 54,430
• 30 Day Avg. Volume: 107,936
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: S$0.00 ▼(-100.00%Downside)

Nera Telecommunications Ltd's overall stock score is significantly impacted by its poor financial performance, characterized by declining revenues, negative net income, and cash flow challenges. The technical indicators suggest the stock is oversold, potentially offering a short-term buying opportunity, but the long-term outlook remains uncertain due to valuation concerns and operational inefficiencies.

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 primarily generates revenue through the sale and installation of telecommunications infrastructure and services. Key revenue streams include the provision of turnkey solutions, which involve designing and building communication networks for clients. Additionally, the company earns from long-term service contracts for network maintenance and upgrades. Significant partnerships with technology providers and telecom operators enhance its market presence and contribute to revenue growth. These collaborations allow the company to offer comprehensive solutions and access new markets.

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
EBITDA	-1.07M	7.66M	-2.31M	-12.70M	6.97M
Net Income	-2.81M	5.67M	-7.29M	-15.99M	2.95M
Balance Sheet
Total Assets	110.45M	126.83M	152.41M	152.03M	162.35M
Cash, Cash Equivalents and Short-Term Investments	14.30M	20.62M	18.20M	23.50M	23.12M
Total Debt	14.51M	17.95M	26.94M	33.22M	32.79M
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: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:N01, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 22.18 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:N01.

Nera Telecommunications Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
A31	60 Neutral	S$52.29M	22.86	22.15%	―	20.98%	600.00%
BIX	57 Neutral	S$41.67M	―	-1.11%	4.00%	3.75%	-1700.00%
N01	40 Underperform	S$33.66M	―	-6.35%	5.38%	-30.66%	-150.98%
BDR	―	S$70.97M	―	-26.98%	―	―	―
S69	―	S$43.00M	80.00	0.34%	―	―	―
Y3D	―	S$72.67M	13.17	4.48%	2.77%	―	―

Nera Telecommunications Ltd Corporate Events

Nera Telecommunications Secures S$30 Million Contract Renewal

Nera Telecommunications Ltd has secured a contract renewal valued at approximately S$30 million with a major Southeast Asian service provider. The contract involves implementing a smart services training program and deploying personnel across over one hundred sites to boost digital commerce in rural areas. Additionally, it includes a 60-month managed services component for operational management and infrastructure maintenance, expected to positively impact the company’s financial performance this year.

Nera Telecommunications Ltd Announces Board Restructuring

Nera Telecommunications Ltd has announced changes in its Board of Directors and Board Committees, effective from July 1, 2025. Mr. Yu, Ling-Hsiao has been re-designated as an Executive Director, while Mr. Wang, Yung-Hsiang has been appointed as a Non-Independent Non-Executive Director. These changes are expected to impact the company’s governance structure and potentially influence its strategic direction.

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.