InnoTek (M14) AGM 2024 presentation summary

FY2023 snapshot

• Revenue rose 10.1% YoY to S$205.6M from S$186.8M; FY2023 net profit attributable to owners was S$4.7M, versus S$2.3M in FY2022.

• FY2023 dividend was 2.0¢ per ordinary share; NAV was 74.9¢ per share.

• FY2023 revenue mix: Auto 39%, OA 27%, TV/Display 14%, New Field 17% and Others 3%.

Operational highlights

• New Field projects in high-end GPU servers and gaming machines recorded the highest growth.

• Auto turnover increased as EV adoption accelerated, supporting demand for tooling and EV battery components; overseas demand also recovered.

• OA demand softened as customers shifted manufacturing from China to Southeast Asia; TV/Display sales fell as customers delayed orders to digest inventory, partly offset by new launches.

• Lower scrap and rework rates reflected continued improvements in production processes, quality and efficiency controls.

• Vietnam facility began mass production of TV bezels in 2H'23 and enhanced its technical and manufacturing capabilities.

Financial performance

• Gross profit increased 21.2% YoY to S$33.0M, outpacing revenue growth; lower scrap and rework and reduced steel and aluminum costs supported the increase.

• Net profit nearly doubled to S$4.7M from S$2.3M; results included a S$1.4M impairment on property, plant and equipment at a China subsidiary.

• Excluding the one-off impairment, net profit would have been S$5.8M.