InnoTek (M14) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 15.8% to S$238.0M; net profit attributable to owners increased 24.5% to S$5.797M, marking nine consecutive profitable years.

• Excluding S$6.0M of one-off non-cash exceptional items, FY2024 net profit was S$11.835M, up 88.0%.

Financial highlights

• Revenue increased from S$205.6M in FY2023 to S$238.0M in FY2024; 2H revenue rose 3.3% to S$116.5M.

• Gross profit grew 10.6% to S$36.4M; 2H gross profit rose 8.3% to S$18.7M.

• FY2024 net profit attributable to owners was S$5.797M, up 24.5%; net profit excluding exceptional items was S$11.835M.

Outlook and guidance

• GPU server demand is expected to remain robust amid AI and cloud-computing growth; planned additions include new chassis models and liquid-cooling systems.

• OA sales are expected to remain stable, with Southeast Asian operations contributing more revenue; TV/Display growth is supported by production ramp-ups for European and U.S. demand.

• New and repeat OA and Automotive orders secured at the Rayong facility are expected to contribute positively to FY2025 revenue.

• Priorities include streamlining Automotive customers, realigning products for global Tier 1 customers, improving QCDS, and exploring M&A to expand geographic reach and support China+1 manufacturing shifts.