Innovalues’ profit to surge on back of USD strength

Its core profit might surge to $14m in FY14.

Innovalues is set to profit from the greenback’s strength, as 90% of its revenue is in USD. According to Maybank Kim Eng, Innovalues will get an estimated 0.7% boost to gross profit for every 1% gain in USD vs SGD.

Core net profit is forecasted to grow 118% on-year to $14m. Innovalues is also slated to gain from lower material prices. Prices of stainless steel, its major input, should be depressed by low oil prices, aiding its quest to raise margins through myriad measures.

“ For FY15E, our modelling of 24% profit growth could be further helped by the USD rally, which makes Innovalues stronger than USbased rivals. CNY strength should also hasten its productivity programmes in China to improve returns,” stated Maybank Kim Eng.