InnoTek (M14) AGM 2025 presentation summary

FY2024 operating performance

• GPU servers recorded the highest YoY growth, lifted by strong AI server demand.

• Auto orders rose in international markets and EV components in China, partly offset by lower petrol-car component sales to foreign brands in China.

• Office automation grew on Southeast Asian sales, partly offset by a China decline; TV/display sales rose on customer product launches in China and Vietnam.

• Thailand and Vietnam facilities revenue grew 144.8% to S$31.1M from S$12.7M.

• Mansfield Surface Treatment (Dongguan) was established on 16 Jan 2025 for secondary processing, aiming to improve process control, efficiency, quality and lead times.

Financial results

• FY2024 revenue increased 15.8% to S$238.0M from S$205.6M, supported by auto turnover, ramp-up of new field businesses including GPU servers, Southeast Asian OA sales and TV/display launches.

• Gross profit rose 10.6% to S$36.4M; gross margin declined to 15.3% from 16.0%, partly due to inventory and tooling obsolescence allowances, mostly in Automotive.

• Net profit attributable to owners increased 24.5% to S$5.8M from S$4.7M; FY2024 included S$6.0M in one-off exceptional items, and net profit excluding these items was S$11.8M.

• Net cash was S$65.1M at 31 Dec 2024; FY2024 dividend was 2.0 cents per ordinary share and NAV was 76.2 cents per ordinary share.

Sector and strategic outlook

• Automotive volatility is expected to continue amid China's petrol-to-EV shift and EV market consolidation; TV/display demand is expected to remain stable on new launches.

• OA is expected to remain steady, with Southeast Asian operations expected to increase turnover; GPU server growth is expected to continue amid AI and cloud demand.

• GPU product range expansion includes new server chassis models and liquid cooling systems; strategic auto customer-base review aims to better serve global Tier 1 customers.

• Thailand secured new and repeat OA and Automotive orders expected to contribute positively to FY2025 revenue; M&A opportunities are being explored to expand geographic reach for China+1 manufacturing.

• QCDS enhancement is a priority to support competitiveness and secure new projects.