InnoTek

[mslee888]

There is a married deal today..of 14,082,700 shares....at 40ct. Most likely its Gazelle selling out.

From 2017 AR...they are holding this qty....Gazelle Capital Pte. Ltd. is deemed to be interested in 14,082,700 shares held through the following: • OCBC Securities Private Limited in respect of 886,000 shares • Maybank Kim Eng Securities Pte. Ltd. in respect of 5,000,000 shares • Sing Investments & Finance Nominees (Pte.) Ltd. – 8,196,700 shares

Wonder who are the buyers....wait n see...

[mslee888]

Wow..buyer of married deal is non other than Mr Lou Yiliang. This should give added confidence to existing shareholders...


http://infopub.sgx.com/FileOpen/_Mr%20Lo...eID=516734

[kelvesy]

Wow, you are right. Gazelle sold out all their interests. A very long position they held, finally they are letting it go.

http://infopub.sgx.com/FileOpen/_Gazelle...eID=516746

[MOV]

After unsuccessfully calling for a special dividend of 7.5cts at the last AGM, it is not surprising now that Gazelle Capital chose to exit this investment which they have held probably since July 2010 when they first appeared as a substantial shareholder. It seems either they are in need of capital or just a case of patience wear thin and chose to recycle their capital.

What is surprising is that CEO Lou Yiliang has emerged as the second largest shareholder after the Chandarias with a 11.48% stake. Previously CEO Lou's last purchase from the open market was on 5 July 2016 at an average price of $0.154. This latest purchase from Gazelle at $0.40, not only doubles his shareholdings, but is also 159% higher than his last purchase price and 8.1% premium over last traded price of $0.37. A great show of confidence and further putting his money and skin into the transformation he is creating!

With both Weihai plant and new Thai factory slated to boost production in 2H2018 and new customers such as HP, Innotek stands to reap its investments soon.

I am holding on my shares even tighter!! 

[MOV]

Innotek released its 2nd quarter results today and profits increased a superb 965% from $536k to $5.713m. Much higher than anticipated with NAV now at 61.6 cents.

A 5-star performance indeed and likely to strengthen for the rest of 2018 and into 2019. Their stars are aligning for a fantastic performance as I mentioned before...........Why 5?

1st star - Precision Machining continues to generate strong revenue for bezels for large format TVs. New products such as heat-sinks, child car seats and now commercial displays are adding to growth.

2nd star - New OA factory in Thailand is progressing very well and in-fact recoup some lost ground this quarter and started supporting OA clients now. A major coup is Innotek seems to be earmarked as an elite supplier for Japanese OA clients shifting their supply chain out of China.

3rd star - New automotive programmes are already secured and targeted for mass production in 2H2018. New functional and safety parts are now added to its suites of offerings. New engine of growth.

4th star - Mansfield Weihai has secured factory certification and commenced shipping to a key printer customer with mass production set to start in 2H2018.

5th star - Lower office (HQ) rent, higher China factory rentals, lower tax and yuan depreciation against US$ is going to provide more tail-wind and positive trend for this year and beyond.

Quote: "Mr Lou Yiliang, Chief Executive Officer of InnoTek, said: “It has been an exceptional quarter for InnoTek. Despite the start-up costs for our new subsidiaries, our improved sales performance and the opening of our Thailand plant have put us in a much better position to serve our clients in the region. We have implemented robotic arms and other initiatives to automate our manufacturing operations, and will continue to upgrade our capabilities to boost productivity and drive growth.” “Although we faced pressure of the Sino-China trade war and challenges such as rising  material cost, higher labour cost and changes in Chinese government policy on social security and housing funds, yet going forward, we will strive to sustain our sales momentum by strengthening engagement with our existing clients and securing new programmes. We also expect to commence mass production for our clients in the automotive sector next year, which we believe will be another engine of growth,” he added."

A star-spangled night for Innotek shareholders!! 

[mslee888]

Just released their 3rd Qtr results. Great performance from Mr Lou.

Commenting on the Group’s performance, Mr Lou Yiliang, Chief Executive Officer of InnoTek, said: “Despite ongoing challenges in the operating environment, such as unstable raw material prices, labour costs and the Sino-U.S. trade war, our prudent approach to business has paid off with this quarter’s strong performance. We will continue to expand our suite of offerings, ramp up research and development, and increase manufacturing automation to improve output. This will form a strong foundation for future growth.” “The Group will seek to increase our market share in office automation by shifting from single-component supply to assembly supply. We are also committed to developing our automotive business and will commence mass production for more clients in this sector next year,” he added. 

His foresight and strategy will clearly set the path for the company to continue to grow in a steady pace.

[MOV]

Indeed, Innotek just delivered a very superb result, and net profit this quarter would have been close to $10m if not provisioning for Weihai. 

The following questions ring in mind when considering the next 1-2 years:

1) How will the supply chain shifts especially OA supply chain benefit Innotek, being one of the leading Japanese supplier with strong customers.

2) As automakers rush to China to set up or expand factories for domestic production, will it lead to increased programmes for Innotek? No one can afford to be left out of the world's largest automotive market.

3) As Innotek transitions from being a single component supplier to assembly supply, from manpower-heavy to increased automation, with increased focus on R&D, how will this pan out for their margins and revenue growth?

With cash of $46.3m and no debt, financial assets $9.5m and investment property of $26m, adds to a total of 36 cts per share.

Clearly the market is too absorbed with trade war to notice this little bright spot!! 

[sgmystique]

Indeed, Innotek just delivered a very superb result, and net profit this quarter would have been close to $10m if not provisioning for Weihai. 

The following questions ring in mind when considering the next 1-2 years:

1) How will the supply chain shifts especially OA supply chain benefit Innotek, being one of the leading Japanese supplier with strong customers.

2) As automakers rush to China to set up or expand factories for domestic production, will it lead to increased programmes for Innotek? No one can afford to be left out of the world's largest automotive market.

3) As Innotek transitions from being a single component supplier to assembly supply, from manpower-heavy to increased automation, with increased focus on R&D, how will this pan out for their margins and revenue growth?

With cash of $46.3m and no debt, financial assets $9.5m and investment property of $26m, adds to a total of 36 cts per share.

Clearly the market is too absorbed with trade war to notice this little bright spot!! 

Well nobody is stopping Innotek supporters from picking up more of their favorite stock 

[MOV]

Today Innotek's share price closed at 47.5cts which is near to its 52 weeks high! 

Mr Market seems to be finally realising this little gem's fantastic outperformance compared to some other listed manufacturers.

With 9MFY2018 profits ($12.9m) already surpassing FY2017 ($9.8m), the company is on track for one of its strongest performance in the last 10 years, a remarkable turnaround engineered by the current management.

A growing NAV currently at 62.9cts, no debt and lots of cash, shareholders should expect a higher dividend this year and increasing valuations. Automotive and thailand factory is also ramping up in 2019.

Angbao coming!! 

[MOV]

Innotek just released their 4Q2018 results with profits after tax up a whopping 159% to $7.28m, bringing full year profits to $20.24m (up 105%). This is the 3rd consecutive full year profits for the company and 11 quarters of profit since the new CEO Mr Lou and his team took over. Gross margins have also increased steadily to 21.4% (FY2017: 18.3%) underscoring the excellent operation experience of the new team. 

Board & Mgt is now confident enough to increase dividend to 1.5 cents this year, with cash & financial assets of $60m (26 cents) compared to a market capitalization of $113m (50 cents) and NTA of $149.6m (66 cents).

What lies ahead is comforting for shareholders amidst all the turbulence in markets:

From results commentary:

On trade war:
"Most of the Group's customers mainly produce for local consumption in China. While some customers export components to overseas production bases for local assembly and local sales, there are few direct exports to the US market. Therefore, the impact on the Group in the short term is expected to be limited."

On automotive:
"Notwithstanding the current uncertainty in China’s automotive industry, the Group’s newly acquired major customers have expressed confidence in the quality and functionality of its products. Therefore the Group expects stability of its automotive business which will contribute steadily to the revenue in the future.

On Precision Machining (TV bezels and displays, heat sinks):
While production of TV bezels for high-definition (“HD”) screens of up to 55 inches has declined following accelerated conversion to plastic frames, the Group expects demand to continue for larger HDTV bezels. In addition, sales of heatsinks and automotive display panels will continue to stabilize sales for the Group’s Precision Machining business. The Group will also strive to secure new orders for commercial displays in 2019.

On office automation (shift in supply chain):
The Group's OA business is still growing steadily this year, underscoring the Group’s capability to respond to customers' strict requirements on product quality and delivery time. The Group intends to increase its market share by shifting from single-component supply to assembly works.

Management deserves a shout out - Ganbatte, kudasai - がんばってください！ 加油 !!