InnoTek

[kopihothot]

Is the AR out? Still cannot find, very late now compared to last year.

[cmeng_chan]

Annual Report just released.

[cmeng_chan]

Interesting stats from the Annual Report. Showed reduced expenses,more efficient operationally.

Behind the financial performance is one notable statistic.
Our production workforce has declined from 4,000 in
FY’15 to 2,120 in FY’18. Over this comparative, revenue
has held relatively stable, ranging from S$212.9 million
to S$233.1 million. This means that revenue per employee
over the last three years has increased to S$103,000 from
S$58,000.

[cmeng_chan]

I compared the Gross/Nett Margin
Gross Margin will indicate the direct costs in making the product (Production operator headcount costs, material costs, etc)
For a Gross Margin of 20%, that would mean it $100 product costs $80 to build, and company earns $20 gross margin.
On the other hand, Nett Margin will include all other non-direct costs (Sales, IT, HR, etc) to keep the business running.

The current CEO Lou Yiliang took up the position at end 2015.
How was the transformation?
The Gross Margin is close to 20% after he took over, which meant production costs has came down.
The Nett Margin shows steady climb to 10.69%, which meant that other costs will coming down too.
Generally, operations is getting more efficiently run under this CEO.


Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Year 2018
Revenue 258,860 246,948 225,580 233,137 214,740 212,682 218,299
Cost of Sales -229,649 -217,084 -207,778 -217,896 -173,761 -173,740 -171,573
Gross Profit 29,211 29,864 17,802 15,241 40,979 38,942 46,726
Gross Margin 11.28% 12.09% 7.89% 6.54% 19.08% 18.31% 21.40%
Profix Before Tax -18,100 548 -28,647 -15,260 13,799 15,794 23,345
Net Margin -6.99% 0.22% -12.70% -6.55% 6.43% 7.43% 10.69%

[MOV]

1QFY2019 results continue to validate Innotek as a superior manufacturing machine with high productivity under a turnaround engineered by CEO Lou from 2015 to 2018.

Compared to 10 years ago, 1QFY2009 (Revenue: $83m, Profit: -$779k) and 1QFY2019 (Revenue: $44m, Profit: $3.89m), this is one of the best quarters in terms of margins and productivity. A business school case study candidate anyone??   

While topline this quarter (-7%) has been impacted by auto industry slowdown, Innotek still managed to generate a very decent profit of $3.89m versus $0.117m last year.

Meanwhile stable and strong revenue generations in OA (office automation), large TV bezels, heat sinks, child seats continues......OA is increasingly looking like the star performer this year as Japanese clients outsource further to Innotek.

With cash & other investments of $72.4m and little debt, NAV continues to grow and now at 67.7cts. 

From Press Release:
"Mr Lou Yiliang, InnoTek’s Chief Executive Officer, said: “We are pleased to start off the new financial year in profit in spite of the challenges in the operating environment against the backdrop of a slowing Chinese economy. While we remain cautious about the short-term prospects, we are confident in the Chinese economy’s outlook and would continuously strengthen our business foundation to achieving future growth.” The Group is also actively seeking out new investment opportunities and strategic partners. The Group’s Thailand plant, which officially opened in June last year, is also on track to start mass production in Q2’19 with the support from the Dongguan facility."

[cmeng_chan]

Gross Margin improved in the latest 1st half. From 18% to 22.3%. Looks like they are able to manufacture at higher efficiency and purchases at lower costs.

[dreamybear]

From the article, restructured entity looks promising ....  
*not vested*

-------------------------------------------------------------------------
Innotek's restructuring sets path to success
Mon, Sep 30, 2019 - 5:50 AM

INNOTEK, the China-based precision metal components manufacturer, is battling a slowdown in domestic car sales and some turbulence as Japanese copier makers shift production out to South-east Asia.

But the Singapore-listed company has never been in a better position to ride out the industry headwinds, and is pressing ahead with its multi-year restructuring plan.

Neal Chandaria, non-executive chairman of Innotek, told The Business Times earlier this month: "About four years ago, we took the decision to bring in a local team to understand the local situation. That's Mr Lou and his team, and that has made a significant difference to the company going forward." .....

Innotek makes metal components that go into three main categories of goods - automotives, printers and copiers, and consumer electronics like TV bezels.

"I would say it's been a deliberate decision to focus more on the automotives now, because they are much longer-term programmes. And generally, because of the quality requirements, it's business we think we can sustain," Mr Chandaria said.....

Read more : https://www.businesstimes.com.sg/compani...to-success

[TerryT]

Innotek's market value almost equal to Cash/investment assets.


3 quarter s earning of $3.8m, $3.8m & $4.6m. Capex of $1.7m.


It is trading at PE of about 10 for the 9 months


From annual report/ presentation/ commentary, the company said to face headwind but so far results seem okay.



Really interest me 

[mslee888]

Innotek's market value almost equal to Cash/investment assets.


3 quarter s earning of $3.8m, $3.8m & $4.6m. Capex of $1.7m.


It is trading at PE of about 10 for the 9 months


From annual report/ presentation/ commentary, the company said to face headwind but so far results seem okay.



Really interest me 

Innotek's market value almost equal to Cash/investment assets??? I am more interested Where did you get this info?

[TerryT]

Investment properties + other investment + cash & short term deposit = 97m

(Outstanding shares - treasury shares ) x 0.440 = 99.5m

of which "other investment + cash & short term deposit"
56.5m cash
13.9m investment


I gotten all these figures & info from latest result & annual report.