InnoTek swings to $2.3m profit in Q2 from $5m loss a year ago

SINGAPORE - Precision metal components maker InnoTek Ltd swung to a net profit of S$2.3 million for its second quarter ended June 30 from a loss of S$5 million for the year ago quarter.

Despite a 12.1% decline in revenue to S$50.6 million in the quarter, gross profit more than tripled to S$8.5 million from S$2.4 million, while gross profit margin rose nearly four-fold to 16.7 per cent from 4.2 per cent, said the firm on Thursday (Aug 11).

InnoTek, with five manufacturing facilities in China, said the turnaround after 10 quarters of losses followed key initiatives being executed under a new management to reduce operating costs, increase productivity and strengthen customer engagement.

For the first half-year, the mainboard-listed company made a net profit of S$1.8 million, reversing a loss of S$7.6 million a year earlier.

Earnings per share increased to 1.03 Singapore cents for the second quarter from a loss per share of 2.24 cents a year ago.

Net asset backing per share decreased to 50.3 cents as at June 30, compared to 51.9 cents as at Dec 31, 2015, due mainly to translation loss as a result of the weakening of the Hong Kong dollar against the Singapore dollar.