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(08-06-2017, 02:06 PM)kelvesy Wrote: Interesting to know InnoTek's largest shareholder is Chandaria Trust I who owns Advantec Holding SA and Metchem Engineering SA.
- Aims to improve cost efficiency, asset utilisation, production innovation, staff skills, increase automation via technology utilisation, and customer engagement (quality products and timely delivery)
- Fine-tune operations to sustain this momentum, and explore new geographical markets to expand our business.
Mr Lou is really InnoTek's white angel. Anyone attended AGM, can share more on any insights?
I was there for the AGM. Spent a lot of time with Mr. Lou and the other directors.
Innotek is in very capable hands. Mr. Lou is a silent performer. You will not imagine the turnaround he is executing when you meet up with him. Very humble and would rather prefer the company's results to speak for themselves.
There are challenges with some of their clients moving manufacturing operations from China to Thailand. However Innotek is also moving with them to make sure that the decades long partnership they have sustains. That may lead to some short term pain with capex going up but I feel confident that these investments in maintaining client relationships will pay off in the long run!
I eagerly await the HY results in August...
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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08-06-2017, 03:00 PM
(This post was last modified: 08-06-2017, 03:07 PM by kelvesy.)
(08-06-2017, 02:29 PM)sgmystique Wrote: (08-06-2017, 02:06 PM)kelvesy Wrote: Interesting to know InnoTek's largest shareholder is Chandaria Trust I who owns Advantec Holding SA and Metchem Engineering SA.
- Aims to improve cost efficiency, asset utilisation, production innovation, staff skills, increase automation via technology utilisation, and customer engagement (quality products and timely delivery)
- Fine-tune operations to sustain this momentum, and explore new geographical markets to expand our business.
Mr Lou is really InnoTek's white angel. Anyone attended AGM, can share more on any insights?
I was there for the AGM. Spent a lot of time with Mr. Lou and the other directors.
Innotek is in very capable hands. Mr. Lou is a silent performer. You will not imagine the turnaround he is executing when you meet up with him. Very humble and would rather prefer the company's results to speak for themselves.
There are challenges with some of their clients moving manufacturing operations from China to Thailand. However Innotek is also moving with them to make sure that the decades long partnership they have sustains. That may lead to some short term pain with capex going up but I feel confident that these investments in maintaining client relationships will pay off in the long run!
I eagerly await the HY results in August... Hi sgmystique,
Thanks for your prompt reply. In my years of observing management, I prefer management who under-promise but over-deliver. It is much better that way. Focus on creating the results and let the results speak for itself. Results speak the loudest and silence your critics. Yes, I believe you're talking about moving to Thailand together with their client. It is about restoring trust and confidence. The previous management was a let-up and neglected this aspect of the business.
Are there any interesting things that Mr Lou shared? I like his annual report where he was frank about the realities of InnoTek's business. Not loud or exaggerating or puffing up the business.
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Mr Lou did announce during the AGM that HKD30M will be put aside for capex for Mansfield Thailand. This is to support their major customer, Ricoh, which takes up around 15% of Innotek's total sales.
On one hand, the Precision Components and Tooling business generates a measly 2% PBT margin. I am quite skeptical of moving with the main customers abroad to continue having their business. In my opinion, for a 2% PBT margin, it just does not make sense.
On the other hand, I think going forward, the management may be looking to focus more on the Precision Sub-assembly business, which generates a PBT margin of close to 20%! Both Mr Lou and the COO, Mr Kuang, are both experienced hands in consumer electronics industry, especially the sector. I expect them to grow this business further.
Further unlocking of values could come from the sale of the investment property - factory in Fenggang, Dongguan.
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yawnyawn, that is where I see the opportunity. I hope mr Lou drives further margin expansion in the precision components & tooling. In all honesty, I would've preferred to focus on sub-assembly segment where they have better price differentiation and charging power.
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(08-06-2017, 06:22 PM)kelvesy Wrote: yawnyawn, that is where I see the opportunity. I hope mr Lou drives further margin expansion in the precision components & tooling. In all honesty, I would've preferred to focus on sub-assembly segment where they have better price differentiation and charging power.
I think we got to be realistic here. We are unlikely to see double digits margin for this segment of the business.
Reading through ARs of various precision components manfacturers listed on SGX, i get a sense that this portion of the business is inherently low-margin. Be it due to cost pressures from customers or no differentiation in the products of similar companies.
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09-06-2017, 11:58 AM
(This post was last modified: 10-06-2017, 08:52 AM by kelvesy.)
Hmm, their major customer, Japan listed Ricoh Company, Ltd. (TSE:7752), is not doing well.
http://asia.nikkei.com/Business/Companie...rall-slump
https://www.crn.com.au/news/ricoh-austra...fle-461793
Recent article on Mansfield COO (chinese): http://essc.fqprx.com/ehbs/28502.html
Looking deeper into InnoTek, the margins are not that stable. Their headcount shrunk in 1Q FY17 significantly, so this could drive further employee-related expenses. Really cool to have Lou Yiliang, Kuang Yubin and Ippei Okura.
Mr Kuang was previously from Skyworth and Koda. He had achieved fantastic results during his tenure in both firms, there are some chinese articles on him. Ippei Okura is president of Toyoichi (bridging Japan and China). From this, you can see Mr Lou Yiliang really brought all his generals to work on turning around plus biz development.
Still must eye deeper into their biz development story now. Two of their segments are automotive and TV which tends to be big ticket items, have to keep in mind. http://essc.fqprx.com/ehbs/28502.html
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[Potential Growth? Innolux is InnoTek's customer]
Chinese and Taiwanese panel suppliers such as BOE, AUO, CPT and Innolux are rushing to fill the gap in supply created by the reduction in Korean TFT LCD panel production by increasing production volume for display panels.
http://infopub.sgx.com/FileOpen/Chasen_P...eID=455843
http://infopub.sgx.com/FileOpen/Chasen_P...eID=444450
Despite the slower economic growth, the Chinese government is very forward looking with regard to the flat panel display manufacturing sector. It is investing billions in RMB terms as there is a large demand for television and mobile phones by the domestic population alone.
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Innotek is a stock to watch out for! With new management in place, Lou Yiliang and Kuang Yubin have been in the business for many many years with lots of experience. This can be proven by the turnaround in profits and increase in margins by focusing on higher margin products. Lou Yiliang and Kuang Yubin go way back in 2006 when Lou formed a joint venture with major TV manufacturer Konka. Mr. Kuang was with the Konka Group Co., Ltd. (“Konka”) since for more than 14 years and assumed various key roles! Kuang played a critical part in growing Konka’s colour TV business, which dominated China’s domestic market for several years.
Not to mention on top of that Kuang has been Skyworth Overseas Development Ltd. and served as the President for four years, where he played an instrumental role in transforming the business to achieve a new peak.
It is clear that when Lou Yiliang took helm of Innotek he brought in his partner Kuang Yubin to grow Innotek. If we compare Innotek to their peers, they are trading at a very low valuation too...
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14-06-2017, 08:39 AM
(This post was last modified: 14-06-2017, 08:43 AM by kelvesy.)
Some hiring going on... all operations and higher value-added functions.
http://sou.zhaopin.com/jobs/companysearc...C450358017
http://jobs.51job.com/all/co2541998.html
https://www.liepin.com/company/872645/
You can see that they are re-building their capabilities. Now, InnoTek seems to be pushing hard to grow a team with deep domain expertise.
Btw, is Mr Kuang full-time employee at InnoTek or having dual jobs? Saw that he is 雅佳tv总裁 too.
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https://www.liepin.com/company/gs6805731/
https://www.liepin.com/company/gs319876/
Quality hiring continues. Head of Manufacturing, Assistant Technical Director, Quality Head, Project Engineer.
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