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Nera Telecommunications Ltd (SG:N01)
:N01
Singapore Market
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Nera Telecommunications Ltd (N01) AI Stock Analysis

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Nera Telecommunications Ltd

(SGX:N01)

Rating:53Neutral
Price Target:
S$0.00
▼(-100.00%Downside)
The overall stock score of Nera Telecommunications Ltd is primarily impacted by its financial performance, which is currently weak due to declining revenues and negative profitability. Technical analysis provides some support with positive momentum indicators, but the valuation is mixed due to the high dividend yield against a negative P/E ratio. The absence of earnings call insights and corporate events means these factors do not influence the score.

Nera Telecommunications Ltd (N01) vs. iShares MSCI Singapore ETF (EWS)

Nera Telecommunications Ltd Business Overview & Revenue Model

Company DescriptionNera 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 MoneyNera 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
35
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue98.25M141.69M132.53M102.61M131.12M
Gross Profit24.41M31.24M29.58M19.52M29.83M
EBITDA-1.07M7.66M-2.31M-12.70M6.97M
Net Income-2.81M5.67M-7.29M-15.99M2.95M
Balance Sheet
Total Assets110.45M126.83M152.41M152.03M162.35M
Cash, Cash Equivalents and Short-Term Investments14.30M20.62M18.20M23.50M23.12M
Total Debt14.51M17.95M26.94M33.22M32.79M
Total Liabilities68.54M80.25M111.34M105.49M96.09M
Stockholders Equity41.91M46.58M41.06M46.54M66.26M
Cash Flow
Free Cash Flow-219.00K6.49M7.11M-1.06M760.00K
Operating Cash Flow59.00K7.91M7.64M-514.00K3.13M
Investing Cash Flow96.00K5.14M-89.00K898.00K-2.12M
Financing Cash Flow-6.68M-9.97M-12.11M640.00K9.18M

Nera Telecommunications Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.10
Price Trends
50DMA
0.10
Positive
100DMA
0.09
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Positive
RSI
61.39
Neutral
STOCH
69.44
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 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥228.97B14.577.50%2.73%9.28%6.70%
SGA31
60
Neutral
S$52.29M22.8622.15%20.98%600.00%
SGBIX
57
Neutral
S$40.83M-1.11%4.08%3.75%-1700.00%
SGN01
53
Neutral
S$35.83M-6.35%5.05%-30.66%-150.98%
SGBDR
S$70.54M-26.98%
SGS69
S$40.31M76.670.34%
SGY3D
S$63.92M11.594.48%3.15%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:N01
Nera Telecommunications Ltd
0.10
0.03
42.86%
SG:A31
Addvalue Technologies Ltd
0.02
0.01
100.00%
SG:BDR
Willas-Array Electronics (Holdings) Limited
0.81
0.26
47.27%
SG:BIX
Ellipsiz Ltd
0.25
0.11
78.57%
SG:S69
Serial System Ltd
0.05
0.00
0.00%
SG:Y3D
mDR Limited
0.07
0.03
75.00%

Nera Telecommunications Ltd Corporate Events

Nera Telecommunications Secures S$30 Million Contract Renewal
Jun 25, 2025

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
Jun 20, 2025

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
Jun 4, 2025

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
May 28, 2025

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
May 16, 2025

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
May 16, 2025

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
Apr 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025