InnoTek: precision manufacturing with an AI tailwind

Innotech Limited is a Singapore-based precision engineering group listed on the SGX main board since 1998. The group has evolved from a traditional metal components manufacturer into now a high-tech enabler for the global AI infrastructure and electric vehicle sectors. In late 2025, the group was approved as a recommended vendor and tier-one supplier for an Nvidia and IIT systems providing them with the halo effect and a place in the high-demand AI sector. we have now started supplying to the leader in this space, which is Nvidia.

Nvidia has been quite a challenge to get as a customer. It has taken us a lot of time and effort. Nvidia's expectation is very high from their suppliers. they expect high technology, high quality, and speed of light action.

They expect, for example, that, you know, they'll have meetings with us in Silicon Valley, and they expect that overnight we will work in China to meet their new requirements. And next day we will present them with the products or prototypes that they are wanting to consider. So, what would have taken normally a 2-year timeframe for a company to be approved with Nvidia, we were able to get approvals within 6 months. And this shows the kind of capability that the company has.

Innotech saw a shift in the revenue segments and segmental growth with their automotive segments and AI server segments growing in FY 2025 and accounting for nearly 60% of their revenue. The growth, especially in the AI server segments, is expected to continue with the increased demand in the AI sector. the company has been going through a transformation over the last year or two. You know, traditionally we have been attempting to grow at 15% per annum with margins of around 15%.

However, we see with the transformation that's taking place that the growth will significantly increase and the margins will also remain more stable and better. In terms of the growth that we are seeing and the transformation that's happening is in the AI sector. We are currently about supplying about 20% of our total revenue to the AI server sector. And we expect this growth to continue to become one of the major segments for the company similar to our automotive segment today.

And we think this growth is driven by explosion which has taken place in the demand for the AI sector. While InnoTek's status as a recommended vendor for Nvidia and IEIT systems provided them with the halo effect, it also exposes the group to intense operational pressure. InnoTek also remains exposed to global geopolitical tensions which continues to dampen consumer sentiment. With the industry set for a 50% kicker growth over the next few years and assuming a normalized gross margin of 15% for InnoTek, its valuations fall in line with the Singapore peers which trade at about 25 times forward earnings.

With an impressive net cash position and the accelerating growth in the AI and EV sectors underway, InnoTek is well positioned to capture meaningful contributions amid the global AI infrastructure tailwinds.