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Stockwatch- Innovalues Precision (Singapore) featured in Smart Investor magazine

I just received the November edition of Smart Investor magazine. Pleasantly surprised to find that Innovalues is featured in an article following an interview with Mr Goh Leng Tse, founder and CEO of Innovalues. The key highlights are summarised as follows:

1. Innovalues Precision looks set to capitalise on the growing opportunities in the automotive industry.

2. In 2003, Automotive segment generates revenue of $300,000, which represented less than one percent of group revenue. A year later, this segment contributed about four percent or about $3mil of group's revenue and last year, the proportion rose to 10%, contributing about $10mil.

3. "This year, we expect the automotive segment to more than double the revenue contribution to about $25mil," said Mr Goh.

4. Innovalues is now supply brake sensors to the diesel-engine cars in European markets. According to Mr Goh, there is a brake sensor in each of the four wheels as well as the central processing unit. He said:" These sensors can sense the road conditions when you are driving and the wheels will adjust by themselves. This is especially useful during the cornering process or wet weather as the wheels will not skid away from the road." The system is known as electronic stability control system (ESC) , and its acceptance level amongst drivers is gaining popularity, said Mr Goh.

5. Diesel-engine cars use fuel injectors that can save petrol by up to 50%, and are environmentally friendly. The demand for fuel injectors is set to rise, and with more than 80% of the drivers using diesel engine cars in Europe, this presents a good opportunity for Innovalues, Mr Goh added.

6. Because of the success with brake sensors, Innovalues later introduced the occupant weight sensors that could sense the weight of the person seated at the front passenger seat. According to Mr Goh, the United States has announced that by 2007, all the new cars in the US must be installed with the occupant sensor.

7. Asia is becoming an increasing important place for European and US car parts manufacturers to source for automotive components. Mr Goh said, "Going forward, our automotive segment will continue to be one of the key growth drivers for the group and we see great opportunities in this segment." Over the past few months, the group has received an increasing number of enquiries from interested parties for possible strategic business alliances, he added.

posted by gsg @ 5:20 AM