[SINGAPORE] Shares of mainboard-listed InnoTek rallied on Monday (Oct 13), on news that it had clinched projects for Nvidia and Shenzhen-listed IEIT Systems.
The counter soared to S$0.785 at 2.17 pm, up by 42.7 per cent or S$0.235 from its closing price of S$0.55 on Friday, with some 14.7 million shares changing hands. It last traded higher in December 2021.
The counter ended the day at S$0.75, still up by 36.4 per cent or S$0.20, at its highest closing price in three years, with about 18.7 million shares transacted.
New projects
The precision components manufacturer announced on Monday that two of its subsidiaries had clinched projects to produce components for Nvidia and IEIT Systems.
Its subsidiary, Magix Mechatronics (Dongguan) Company, secured initial precision machining orders for components used in Nvidia products, with production expected to commence in Q4 FY2025.
Its other subsidiary, Sun Mansfield Manufacturing (Dongguan) Company, won a new project to produce metal casings and components for graphics processing unit (GPU) servers for IEIT Systems, with manufacturing set to start in October.
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IEIT Systems is a provider of data centre and cloud computing infrastructure listed on the Shenzhen Stock Exchange. It is part of the Chinese state-owned Inspur Group, which is the country’s largest server manufacturer and one of the top global suppliers by market share.
InnoTek said it has been “proactively engaging” new customers in artificial intelligence (AI)-related fields over the past two years. It has also invested in product development for GPU server products in response to growing demand across sectors such as AI and cloud computing.
In an interview with The Business Times in February, chairman Neal Chandaria spoke of plans to transform its business by focusing on future-oriented sectors with growth potential to diversify and scale.
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The company started manufacturing GPU server components in recent years, under a division dedicated to new businesses that it set up in 2022 after the Covid-19 pandemic.
