Innovalues – Driving Growth through Automotives

Innovalues Limited- Driving Growth through Automotives

Ticker IP SP
MARKET CAP (M): S$262m


For more information, please contact:
Chong Yap TOK/James BYWATER 
Tel: +65 6438 2990


Benefitting from increasing worldwide automobile sales   

Innovalues, a precision manufacturer of automotive components, is set to benefit from increasing sales of automobiles globally. According to the International Organisation of Motor Vehicle Manufacturers (OICA), production of automobiles has been increasing every year from 2010. Innovalues supplies to leading automotive players such as Sensata Technologies (the largest automobile sensor producer in the world) and Hilite International (a leading manufacturer of automotive engine and transmission components), as well as directly to automobile manufacturers such as Audi and Volkswagen.


Increasing use of sensors in vehicles to boost sales further

Regulatory changes and increasing sophistication in vehicles are driving the use of more sensors in automobiles. In particular, China is lagging the US and Europe in terms of sensor adoption, with room to quadruple sensor sales if standards are raised to international levels, according to Sensata. Electric and hybrid vehicles also require the increasing use of sensors due to their sophistication.


Long-term growth complimented by consistent dividend payouts

According to Bloomberg consensus estimates, Innovalues’ net profit is set to increase at a CAGR of 11.5% p.a. to S$28.6 million for FY2017. The implied forward P/E is 9.2 times. At the current share price, Innovalues is also giving a dividend yield of 4.7%. The dividend is supported by an average dividend payout ratio of 46% for the past three years and a net cash position.



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