SINGAPORE (Oct 25): Innovalues, the customised precision machine parts and components manufacturer, has posted earnings of $6 million for 3Q ended September, compared to $6.7 million in the same quarter last year.
This was mainly due to foreign exchange gains for 3Q16 dropping to $0.3 million, compared to forex gains of $3.1 million in the same period last year.
Innovalues says the net foreign exchange transaction gain for 3Q15 was mainly due to the appreciation of the US dollar against Asian currencies.
Excluding the impact arising from foreign exchange transaction gains, net profit increased 55.8% y-o-y to $5.7 million.
Revenue rose 11.5% to $31.5 million for 3Q16, from $28.2 million in the same period last year.
This was driven by higher revenue from Innovalues’ automotive segment, which grew 12.0% y-o-y to $24.4 million. Its automotive segment accounts for 77.7% of total revenue.
Meanwhile, Innovalues’ office automation segment grew 9.5% y-o-y to $7.0 million for 3Q16.
Looking ahead, Innovalues says it will ride on the continued success of its automotive segment.
“Positive catalysts include the increased use of sensor components in automobiles along with the growing regulatory trend towards safety/control, energy saving and environmental protection,” Innovalues says in a filing to SGX on Tuesday.
Innovalues says it remains “cautiously optimistic” heading into the final quarter of 2016 despite the challenging business environment.
Innovalues closed 0.5% higher at 98 cents on Tuesday.
