Innovalues

[newborn1000]

sold everything @$0.22 for a tidy sum

Good fortunes to all other valuebuddies =)

[kyle]

I am still sitting on it and would like to take a look at this quarter's result, probably next week...

[kyle]

http://infopub.sgx.com/FileOpen/Innovalu...eID=309654

Another quarter of nice result both top line and bottom line.

Revenue grows 4.4% yoy, and gross profit grows 31% yoy to a historical high of 6.1m. More importantly, GPM improves to 23.5% from 19%, which is also the highest in past two years. Net profit grows 56% yoy and 35% qoq.

Automotive segment continues the strong growth with 10% growth yoy. And Revenue from AU segment accounts to 80% of the total revenue. The AU segment growth is in line with the Auto sales in China and US market.
While Office Automation segment revenue 5.3m, a 12% decline yoy, and a 17% sequential increase.

The same interim dividend 0.6 cents. At today's closing price, it is ~5% yield.

US Auto sales hits a historical high in July, and China Auto sales in July continue to have strong momentum of 8% yoy growth. Is this going to be innovalues's historical golden year?

[kyle]

Half year net profit 6.2m, which is quite close to last year's full year net profit 6.4m

Interestingly, CEO and several directors increased their holdings in the past two weeks, but Altantis Captial Inv fund unexpectedly reduced their holdings....

[kyle]

Strong volume at the end of today pushed the price to another new high 0.27.

In the last two years, the management has successfully commited their strategy to reduce debt and evetually becomes a net-cash position. Re-read the CEO's statement in AR13, "Going forward, we are mindful of the on-going challenges from rising business costs and wage increases in the country which our group operates in. As such, we will continue to focus on refining and automating our business processes to raise productivity. " Combined with the group first half result in 2014, looks like they commit a wonderful work in improving the efficiency...

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Rev 22 25 27 23 24 26
GP 3.6 4.7 5.1 3.4 4.9 6.2
GPM 0.16 0.19 0.19 0.15 0.21 0.24

[kyle]

U.S. auto sales surge in August to month's highest level in years

http://www.latimes.com/business/autos/la...story.html

Automakers sold about 1.6 million vehicles in the U.S. in August, an increase of about 3% from the same period a year earlier, according to initial industry estimates released Wednesday.

Sales this August surpassed last year’s total even though dealers in some states with restrictions on retailing had one less day to sell cars this year.

“The industry had its best August in over a decade,” said Bill Fay, Toyota division group vice president and general manager.

Can this good sales continue to the end of this year??

[kyle]

Extremely high volume yesterday and today with around 18 m transactions in two days. Supported by Amfraser's initial coverage today.

Innovalues Ltd the initial coverage- More to come

We initiate coverage on Innovalues with a BUY rating at a target price of S$0.465 based on 10x FY15F P/E. Singapore-based precision metal components maker, Innovalues, has transformed itself from an office automation/hard disk drive supply chain player to now, an automotive parts supply chain player.

Booming automotive market
The automotive market in China and US has rebounded and been growing steadily after the global financial crisis and are expected to continue growing. Notwithstanding new customer acquisitions, a recovery in the European automotive market and the recent M&A activities conducted by its existing key customers will also add a further boost to Innovalues in the coming years.

Strong bottom-line growth through margin expansion
Although we are conservatively expecting revenue to grow at about 7% over the next 3 years, its resultant earnings is expected to grow at 3-yr CAGR of 38% between FY13-FY16F through margin expansion.

Higher dividends post balance sheet clean-up
Innovalues has been progressively paying down its debt over the last 6 years, and has just turned net cash in 2Q14. Along with its strong FCF, the company is now in a position to increase dividends. We expect total dividends for FY14 to be increased to 1.7 Scts (5.7% yield) vs. 1.2 Scts in FY13 and FY12, and continue to grow going forward.

Positive insider activity
Recently, its directors, including Chairman/CEO Mr. Goh Leng Tse, have been buying up shares from the open market. Over the last 2 months, about S$1m was spent by these directors to acquire 4.7m shares (ave. price of S$0.22) from the open market.

[kyle]

2014年8月份全国乘用车市场分析

China Aug auto sales and production continue the growth momentum with yoy growth at 9% and 6.7% respectively.

China monthly auto sales comparison yoy.
[Image: j402e132aa846d80e847ba89ecaaf224e]

[newborn1000]

Oh mine.....this stock is rocketing, congrats Kyle.......I think you maybe the only one still holding it =)

[kyle]

Oh mine.....this stock is rocketing, congrats Kyle.......I think you maybe the only one still holding it =)

Thanks. I also offloaded most of mine at 0.325 as it reaches my target price.
Kim Eng started to cover it with a target price at 0.52 today. With the management's promotion on the share price and several broker's coverage, this stock seems going to be a hot speculative cake?

Kim Eng target price 0.52