Innotek is reshaping its business once again as global manufacturing trends shift. The company, founded in the US in 1984 as Magnecomp, has moved far beyond its early reliance on hard disk drive components and now serves customers in automotive, consumer electronics and office automation. Through these cycles, two constants have remained: its focus on precision engineering and the Chandaria family’s continued leadership and 36% stake.
Now, Innotek is positioning itself for the next growth wave — the AI computing boom. On Oct 13, the company announced it had been approved as a preferred vendor to supply parts for servers built with Nvidia chips. Nvidia’s meteoric rise, powered by demand for AI hardware, has made this a high-profile win. Innotek had worked with Nvidia from the development stage, producing prototypes and specialised parts that required direct approval due to demanding heat tolerance and surface-finish standards. Commercial production is expected to begin this quarter.
Investors responded quickly. Since the announcement, Innotek’s shares have climbed to 71.5 cents as at Nov 10, up nearly 59% year to date and valuing the company at $163.1 million.
The server segment contributed 21% of revenue in the first half of FY2025, and the company expects this share to grow as it bids for more components. Still, the broader business faced a tougher backdrop: revenue fell 15.6% y-o-y to $102.5 million amid weaker demand and trade-war uncertainty, dragging earnings down to $0.4 million.
Despite this, chairman Neal Chandaria says Innotek is well-placed to support the global AI buildout, with annual capex of $10 million to $15 million and a strong net cash position of $54.1 million. The company is also expanding into new segments such as medical devices and gaming, while navigating challenges in China’s electric vehicle market and ongoing US–China tensions.
To strengthen supply chains, Innotek is enlarging its Thailand facility and has set up its first Malaysian unit in Melaka. It is also in talks to support server maker Ablecom as it shifts part of its operations from China to Malaysia.
Looking ahead, Innotek aims to grow both organically and through potential acquisitions to regain scale and capture investor attention.
🔥 AI Summary: Strong Earnings, Soft Patches & Strategic Shifts Across Singapore-Listed Counters
SGX:EB5.SI:First Resources
• First Resources reported a 58% y-o-y jump in underlying profit to US$239.6 million for the nine months to Sept 30, lifted by firmer palm oil prices and increased production, aided by contributions from PT Austindo Nusantara Jaya, Tbk (ANJ). Revenue climbed nearly 60% to US$1.14 billion, while EBITDA rose 55.7% to US$426 million.
• Excluding ANJ, fresh fruit bunch and crude palm oil output would still have grown 8.1% and 12.6% respectively. The group held US$328.3 million in cash, with undrawn committed facilities of US$175.9 million. Its recent divestment of two ANJ subsidiaries is expected to trim net debt by around US$80 million.
SGX:CC3.SI:StarHub
• StarHub posted a 35.3% y-o-y decline in 3QFY2025 earnings to $26.2 million as lower EBITDA, higher depreciation and a one-off $14.1 million spectrum forfeiture weighed on performance. Revenue fell 4.3% y-o-y to $550.3 million, with mobile, broadband and entertainment all seeing declines.
• Its enterprise segment slipped in 3Q but grew 1.5% y-o-y for the nine months. Order books strengthened, with regional enterprise up 5.7% and managed services up more than 15%. StarHub targets around $60 million in initial cost savings for FY2026–FY2028.
SGX:ODBU.SI:United Hampshire US REIT
• United Hampshire US REIT recorded 3QFY2025 revenue of US$18.1 million, up 1.4% y-o-y, while net property income rose 5.7% to US$12.7 million. Distributable income grew 15.5% to US$7 million, supported by lower financing costs. For 9MFY2025, revenue and NPI dipped due to earlier divestments.
• On a same-store basis, revenue and NPI were up 3.1% and 5% respectively. CEO Gerard Yuen highlighted strong leasing momentum and positive contributions from the Dover Marketplace acquisition. Grocery & necessity properties held 97% occupancy with a 7.5-year WALE, while debt maturity remains well spread with no refinancing due until next November.
SGX:TQ5.SI:Frasers Property
• Frasers Property reported a 17.8% y-o-y increase in attributable profit to $243.1 million for FY2025, aided by fair value gains and tax provision reversals. However, PBIT fell 12.3% to $1.19 billion amid weaker residential contributions and certain project impairments, partly offset by stronger industrial, logistics and retail performance.
• Revenue declined 19.2% to $3.4 billion. NAV per share slipped to $2.37, reflecting FX translation losses. Net debt ratios rose following FHT privatisation funding, REIT acquisitions and capex commitments. Around 86% of PBIT was recurring, supported by new income-generating assets and ongoing divestment of non-core properties. The final dividend remains unchanged at 4.5 cents.
Walt Disney shares slumped on Thursday after the entertainment group reported fourth-quarter revenue that fell short of expectations, weighed down by a lacklustre film slate that failed to match last year’s box-office hits.
The company posted US$22.5 billion in revenue for the quarter ended Sept 27, little changed from a year earlier, triggering a sell-off that sent the stock tumbling as much as 10% on Wall Street.
Despite the flat top line, Disney delivered a sharp improvement in profitability. Net income surged to US$1.3 billion from US$460 million a year ago, supported by record performance at its theme parks and continued momentum in its streaming businesses.
But analysts zeroed in on weakness in the entertainment division, where operating income slid by US$376 million to US$691 million. The segment struggled against tough comparisons with last year’s major releases, Inside Out 2 and Deadpool & Wolverine, while this quarter’s films — The Fantastic Four: First Steps, The Roses and Freakier Friday — failed to drive similar audience excitement.
“Obviously not every film works… We’ve been around long enough to understand that,” CEO Bob Iger told analysts, while emphasising that he remains “very optimistic” for FY2026. Upcoming heavy-hitters include Zootopia 2, Avatar: Fire and Ash, Toy Story 5 and a live-action remake of Moana.
The direct-to-consumer division was a bright spot, with operating income rising US$99 million to US$352 million. Six years after launching Disney+, which lost billions in its early rollout, the service has become a strong profit engine. Streaming operating profit jumped 39% in the fourth quarter, supported by recent price increases.
Total subscriptions across Disney+ and Hulu reached 196 million. Disney+ alone hit 132 million subscribers, adding 3.8 million in the quarter, while international sign-ups grew 4%.
Disney’s parks business delivered another record performance, with quarterly operating income rising US$219 million to US$1.9 billion. For the full year, the segment generated an unprecedented US$10 billion in operating income. International parks led the gains with a 25% jump to US$375 million, while US parks rose 9% to US$920 million.
🔥 AI Midday Market Wrap: Hong Kong ETFs Surge, HSI Slides, Corporate Earnings Move Markets
HK:07399.HK:XI2CSOPMSTR
• XI2CSOPMSTR led Hong Kong’s ETF gainers at midday, soaring 15.8% to HK$52.8 as leveraged thematic ETFs rallied sharply.
HK:09399.HK:XI2CSOPMSTR-U
• The USD counter of XI2CSOPMSTR jumped 15.6% to US$6.77, mirroring strong upside momentum across derivative-linked ETFs.
HK:07366.HK:XI2CSOPTSLA
• The Tesla-focused leveraged ETF gained 15.4% to HK$12.77, continuing its streak of heavy speculative inflows.
HK:09366.HK:XI2CSOPTSLA-U
• Its USD-denominated counterpart rose 15.1% to US$1.642 on sustained interest in EV-linked leveraged products.
HK:07311.HK:XI2CSOPCOIN
• The crypto-related ETF advanced 14.6% to HK$10.22 as digital-asset sentiment improved.
HK:3115.HK:Hang Seng Index
• The Hang Seng Index sank 340 points or 1.3% to 26,732 at midday, with tech stocks declining while pharma counters saw increased demand.
HK:00700.HK:Tencent Holdings
• Tencent’s 3Q non-IFRS net profit rose 18% YoY to RMB70.55 billion, beating forecasts, but the broader tech pullback weighed on market sentiment.
HK:09988.HK:Alibaba Group
• Alibaba fell 3.4% to HK$156.5, leading declines among major tech constituents.
HK:01810.HK:Xiaomi
• Xiaomi slid 2.3% to HK$42.48 amid broad sector softness.
HK:00388.HK:HKEX
• HKEX dropped 2% to HK$427.8 as turnover moderated.
HK:03690.HK:Meituan
• Meituan eased 2% to HK$100.1, extending recent weakness.
HK:00700.HK:Tencent Holdings
• Tencent slipped 1.8%, despite strong quarterly earnings.
HK:01999.HK:Man Wah Holdings
• Man Wah reported interim net profit of HK$1.146 billion, up 0.6% YoY, even as revenue dipped 2.7% to HK$8.241 billion. Interim DPS was unchanged at HK$0.15.
US:DXY:US Dollar Index
• USD/KRW surged nearly 1% after South Korea and the US finalised a trade and national-security framework involving a US$350 billion investment mechanism targeting shipbuilding, energy and semiconductor industries.
CN:HOME:China Property Index
• Reuters calculations showed home prices across 70 Chinese cities fell 0.5% MoM in October — the steepest drop in a year — underscoring continued property-sector weakness.
HK:09618.HK:JD.com
• Daiwa cut its target price to HK$176, warning that JD Retail may face high base effects in the quarters ahead.
HK:09626.HK:Bilibili
• Daiwa raised its target price to HK$245, citing long-term optimism despite near-term challenges.
HK:09626.HK:Bilibili
• CLSA lifted its target price to US$29.1, expecting continued high-base pressures in 4Q.
HK:09626.HK:Bilibili
• Citi raised its target price to US$27 but maintained a Neutral rating due to demanding valuations.
HK:02255.HK:Geekplus
• Daiwa said Geekplus maintains strong order volumes, and the recent pullback offers market entry opportunities.
HK:HIBOR.HK:Hong Kong Interbank Offered Rate
• Overnight HIBOR fell to 2.08%, its lowest level in a month, indicating easing short-term funding pressures.
US:UCO:ProShares Ultra Bloomberg Crude Oil
• Goldman Sachs raised its global oil demand forecast, citing the lack of meaningful breakthroughs in low-carbon technologies.
🔥 AI Market Snapshot: Brokers Turn Cautious-Optimistic on China Tech as Macro Signals Stay Mixed
HK:09868.HK:XPeng Inc
• JPM raised its target price for XPENG-W to HK$195, expecting the company’s AI deployment from 2Q26 to support a higher share price.
HK:06618.HK:JD Health International Inc
• CLSA lifted its target price for JD Health to HK$71 and kept its Outperform rating, signalling continued confidence in the healthcare platform.
HK:09626.HK:Bilibili Inc
• CICC raised its target price for BILIBILI-W to HK$220 after the company’s 3Q non-GAAP net profit beat expectations.
HK:01698.HK:Tencent Music Entertainment Group
• Daiwa trimmed its target price for TME-SW to HK$91 but reiterated an Outperform rating, pointing to solid fundamentals despite near-term headwinds.
HK:00700.HK:Tencent Holdings Ltd
• Citi raised its target price for Tencent to HK$751 and maintained a Buy rating, following strong earnings momentum and continued platform growth.
HK:09626.HK:Bilibili Inc
• Morgan Stanley increased its Bilibili target price to US$25 but noted that the company’s 4Q guidance came in below market expectations.
• China’s real estate development investment fell 14.7% y-o-y in the first 10 months of 2025, slightly worse than the 14.5% decline expected by the market.
• Goldman Sachs said China’s large-scale build-out of power capacity is helping the country narrow the gap with the US in the race to lead AI infrastructure.
• China’s national urban surveyed unemployment rate stood at 5.1% in October, slightly better than the 5.2% expected by economists.
HK:01698.HK:Tencent Music Entertainment Group
• CLSA cut its target price for TME-SW to HK$92.1 but kept an Outperform rating, reflecting caution on valuation while remaining positive on the business. :contentReference[oaicite:4]{index=4}
• China’s total retail sales of consumer goods grew 2.9% y-o-y in October, slightly above the 2.8% rise forecast by consensus.
• National fixed asset investment in China declined 1.7% y-o-y in the first 10 months of 2025, a deeper drop than the 0.8% fall anticipated by the market.
HK:09626.HK:Bilibili Inc
• BILIBILI-W said its popular title “Escape from Duckov” will be expanded with a PC version and new mobile projects, reinforcing its gaming pipeline.
• The added value of industries above designated scale in China rose 4.9% y-o-y in October, missing market expectations for a 5.5% increase.
HK:06618.HK:JD Health International Inc
• BofA Securities raised JD Health’s target price to HK$75 after its 3Q results came in ahead of expectations.
HK:00700.HK:Tencent Holdings Ltd
• Tencent president Martin Lau warned that international gaming revenue is likely to slow this quarter and said cloud business growth is being constrained by AI chip supply shortages.
HK:00981.HK:Semiconductor Manufacturing International Corp
• SMIC said it expects annual sales revenue to exceed US$9 billion and noted that 4Q demand is not as weak as previously feared.
HK:01211.HK:BYD Company Ltd
• Citi placed BYD Company under a 90-day upside catalyst watch with a target price of HK$174, citing potential share-price drivers ahead.
HK:09618.HK:JD.com Inc
• JD.com CEO Sandy Xu said JD-SW remains relatively rational amid fierce competition, highlighting a healthier order structure in its food-delivery business.
HK:09618.HK:JD.com Inc
• JD-SW shares fell around 4% after Xu flagged a short-term slowdown in demand for national subsidy programmes, while arguing such schemes can still support industrial upgrading.
HK:3115.HK:Hang Seng Index
• The Hang Seng Index opened 412 points lower, with Tencent and JD-SW trading weakly and Baidu-SW sliding more than 7%, weighing on overall sentiment.
HK:00700.HK:Tencent Holdings Ltd
• Tencent traded lacklustre in early dealings, contributing to the HSI’s weaker open.
HK:09618.HK:JD.com Inc
• JD-SW also underperformed at the open, reflecting continued concerns over competition and consumer demand.
HK:09888.HK:Baidu Inc
• Baidu-SW tumbled over 7% at the open, leading declines among major China tech names.
HK:00001.HK:CK Hutchison Holdings Ltd
• CKH Holdings said its Canadian energy associate Cenovus Energy has successfully completed the acquisition of MEG Energy, consolidating oil sands assets in Canada.
US:CVE:Cenovus Energy
• Cenovus Energy closed the takeover of MEG Energy in a cash-and-share deal, adding significant low-cost oil sands production to its portfolio.
US:MEGEF:MEG Energy Corp
• MEG Energy was acquired by Cenovus Energy, giving its shareholders cash and Cenovus shares as part of the transaction.
HK:02788.HK:Chuangxin Industries Holdings Ltd
• Chuangxin Industries launched its Hong Kong IPO of about HK$5.5 billion today, with a one-lot entry fee of roughly HK$5,550.42.
• China’s Cyberspace Administration (CAC) started a strict crackdown on the use of AI to impersonate public figures in live-commerce streams, targeting misleading and fraudulent practices.
HK:02007.HK:Country Garden Holdings Co Ltd
• Country Garden’s proposed restructuring may involve issuing mandatory convertible bonds, new shares and SCA warrants as the developer seeks to stabilise its capital structure.
• Multiple small and mid-sized Chinese banks have withdrawn long-term fixed-deposit products, reflecting funding-cost pressures and a shifting rate environment.
• The European Union agreed to start taxing small parcels valued under EUR150 from next year, tightening loopholes in cross-border e-commerce imports.
HK:09988.HK:Alibaba Group Holding Ltd
• Alibaba Cloud’s Bailian unit announced a price cut for its Tongyi Qianwen 3-Max large model, intensifying competition in China’s AI infrastructure space. :contentReference
• China’s State Administration for Market Regulation (SAMR) launched a public consultation on trademark infringement issues involving e-commerce platforms, signalling tighter oversight.
HK:02099.HK:China Gold International Resources Corp Ltd
• China Gold International (CHINAGOLDINTL) swung to a 1–3Q profit of US$341 million on nearly 100% y-o-y revenue growth to US$925 million. :contentReference
HK:01913.HK:Prada SpA
• Prada reiterated that it still plans a dual listing in Italy, signalling its intention to broaden its investor base beyond Hong Kong. :contentReference
HK:06666.HK:Evergrande Property Services Group Ltd
• Evergrande Property Services said liquidators will review any additional non-binding indicative offers for the company, stressing that any potential transaction remains at a preliminary stage.
• Mainland Chinese silicon wafer producers have jointly moved to support prices and resist further low-priced “involution”, aiming to stabilise margins in a weak semiconductor cycle.
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