InnoTek (M14) H1 2025 earnings summary

Executive summary

• 1H’25 revenue fell 15.6% YoY to S$102.549m amid softer demand and trade-policy uncertainty; net profit after tax declined to S$0.085m from S$3.120m.

• Regional diversification, Thailand capacity expansion and GPU server product development remain priorities despite near-term demand and trade pressures.

Financial highlights

• Revenue was S$102.549m, down 15.6% YoY; cost of sales declined 14.7% to S$88.6m, while gross profit fell 21.3% to S$13.937m.

• Profit before tax declined 79.2% to S$0.804m; net profit after tax was S$0.085m versus S$3.120m, and EPS was 0.18 cents versus 1.36 cents.

• Operating cash flow was S$3.6m; investing and financing cash outflows were S$6.5m and S$5.4m, respectively. Cash and cash equivalents ended June at S$38.0m.

Outlook and guidance

• Melaka operations are targeted to begin in Q2 2026; discussions with a key customer considering a China-to-Malaysia shift are advanced.

• Developing advanced GPU server chassis and liquid-cooling systems and engaging AI-related customers, with long-term demand supported by AI and cloud computing.

• Thailand capacity is being expanded to serve global Tier-1 customers and realign product mix; investment opportunities and potential restructuring remain under consideration.

• Near-term conditions remain challenging as operations adjust to tariffs and global supply-chain changes.