“The recent endorsement by Nvidia and IEIT Systems validates InnoTek’s technical capability in high-precision machining and metal fabrication, raises Innotek’s profile amongst industry players, and embeds it within the fast-growing AI infrastructure value chain,” state Tan and Ling.
DBS Group Research (DBS) analysts Amanda Tan and Ling Lee keng believe that Innotek’s (SGX:M14
) artificial intelligence (AI) exposure will help support structural re-rating for the counter beyond just traditional precision engineering.
In their Mar 9 un-rated report, while the DBS analysts observe that Innotek’s revenue is still predominantly exposed to the automotive (39% of FY2025 revenue) and office automation (22% of FY2025 revenue) segment. However, they see the strategic pivot toward server components (21% of FY2025 revenue) as a meaningful shift in earnings quality.
