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PR Newswire
03-03-2019, 10:50 PM
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 !!
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 !!
(Not a recommendation to buy or sell, just stating facts)