Singapore's InnoTek H1 revenue falls on weak OA, TV/Display demand

InnoTek

13/08/2026 15:02

Overview
Singapore precision metal maker's H1 gross profit rose 3.7% despite 3% revenue decline
Gross margin improved to 14.5% from 13.6% on favourable product mix
Company expanding in Southeast Asia, investing in AI, robotics and liquid cooling

Outlook
Company expects FY2026 to be a year of transition with near-term financial headwinds
InnoTek sees financial contributions from new projects becoming meaningful from FY2027
Company anticipates growth from AI-related, New Energy, and robotics sectors

Result Drivers
PRODUCT MIX - Gross margin improved due to a favourable change in product mix and disciplined cost management, per CEO Lou Yiliang
AUTOMOTIVE SECTOR - Higher order volumes from the electric vehicle market helped offset lower sales in other business sectors
WEAK DEMAND IN OA AND TV/DISPLAY - Lower sales in Office Automation and TV/Display sectors, particularly in China, due to weak market demand and changes in customer procurement

Company press release: ID:nSN6xnJct

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Gross Margin
 
14.50%
 
H1 Gross Profit
 
S$14.40 mln
 

Analyst Coverage
Wall Street's median 12-month price target for InnoTek Ltd is S$0.88, about 67.6% above its August 13 closing price of S$0.53
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads
Aug 13 - Singapore's Frencken Group H1 revenue falls on mechatronics division decline
Aug 13 - Singapore's JEP Holdings H1 profit doubles on aerospace and semiconductor demand
Aug 13 - Singapore's Nanofilm Technologies half-year profit surges 282%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)