InnoTek (M14) investor relations material

Executive summary

• 1H’26 revenue fell 3.0% YoY to S$99.519M, while gross profit rose 3.7% to S$14.446M and EBITDA increased 9.0% to S$7.473M.

• Net profit attributable to owners was S$0.145M, down 64.2% YoY; a S$1.6M foreign-exchange loss weighed on profit.

Financial highlights

• Cost of sales fell 4.0% to S$85.1M; gross margin improved to 14.5% from 13.6% on favourable product mix.

• Profit before tax declined 7.0% to S$0.748M; EPS was 0.06 Singapore cents versus 0.18 cents.

• Other income rose 29.6% to S$3.6M, including a S$1.76M fair-value gain on investment securities; other expenses reached S$1.63M, mainly from FX loss.

• Administrative expenses declined 4.3% to S$13.2M; finance costs increased 8.5% to S$0.8M.

• Operating cash flow rose to S$9.7M from S$3.6M in 1H’25.

Outlook and guidance

• FY2026 is expected to be a transition year; start-up costs and project gestation will weigh on near-term results, with transformation benefits expected from FY2027.

• New GPU server, liquid cooling and robotics projects are expected to start or ramp progressively in H2, with contributions increasingly meaningful from FY2027.

• Liquid cooling pilot and mass production in Thailand are scheduled for October 2026 and January 2027; the facility is expected to begin operations in August 2026.

• AI server orders are expected to remain moderated during next-generation platform transitions; new model qualifications and adjacent products are being pursued.