• Auto is the way. FY20 results was another show of resilience and InnoTek performed largely above our expectations. Through the annual report and annual general meeting, management has communicated strong expectations for the automotive division, led by a strong push for electric vehicles in China.

• 1Q21 unaudited results are promising. InnoTek provided 1QFY21 results during its Annual General Meeting, where sales of S$42.3mn are up 25% YoY with a net profit of S$2.47mn. We think these figures are within range of our
improved FY21 estimates.

• Maintain OUTPERFORM with higher TP of S$1.12. We expect InnoTek’s strategy to drive a recovery in both the top and bottom line. Our 5.5x EV/EBITDA peg translates to around 14.3x FY22F P/E.