InnoTek (M14) H1 2024 earnings summary

Executive summary

• 1H’24 revenue rose 30.9% YoY to S$121.6M; net profit after tax was S$3.120M, up 0.5% YoY.

• Growth in automotive, GPU servers, medical devices, ATMs and TV/Display was partly offset by weaker OA and gaming-machine demand.

• Expanded capacity and new orders underpin cautious optimism for 2H’24, while market volatility and cost pressures remain challenges.

Financial highlights

• Revenue increased from S$92.9M to S$121.6M; gross profit rose 13.0% to S$17.7M.

• Profit before tax increased 1.4% to S$3.864M; net profit after tax was S$3.120M, up 0.5%.

• Selling and distribution expenses rose 27.2% to S$1.917M; administrative expenses increased 17.6% to S$14.389M.

• Operating cash flow was S$3.671M, versus an outflow of S$3.268M in 1H’23.

Outlook and guidance

• Cautious optimism for 2H’24 reflects expanded manufacturing capacity, market recovery and a focus on cost discipline.

• Thailand secured new 2H’24 OA and automotive orders from existing and new customers; Vietnam TV/Display orders increased YoY.

• The 70%-held Bac Giang, Vietnam JV aims to break even in 2H’24.