INLIF Limited (NASDAQ): INLIF, a major company in the specialty industrial machinery industry, joined the NASDAQ. Built for injection molding machine dedicated manipulators, the INLIF brand is manufactured by the company located in Quanzhou, China. In this article, I analyzed INLIF’s recent IPO with a detailed financial analysis of the numbers from the IPO.
Table of Contents
INLIF LIMITED Company Overview
INLIF Limited is a designer, manufacturer and seller of high performance manipulation arms for injection molding applications. The manipulator arms offered by the company include transverse, single and double axis model manipulators, multiple axis models, and large bullhead multi axis manipulator arms. At the same time INLIF provides essential accessories, such as conveyor belt clamps, welded bases and reducer mounting plates that are necessary to the functioning of injection molding machines. INLIF also offers installation services for these manipulator arms along with product offerings.
INLIF was first founded in 2016, having mainly the Chinese market, but the increasing demand for automation and precision in manufacturing has allowed it to develop products with global appeal. With 107 employees, and CEO Rongjun Xu, INLIF stands at 107 as of January 2025.
IPO Performance and Market Statistics of INLIF LIMITED
The stock of INLIF Limited opened at $4.00 per share on January 2, 2025, and moved up to $5.10 per share at close, or 14.61 percent increase. Below is a snapshot of the key market statistics on the company as of the IPO:
- Market Capitalization: $73.95 million
- Revenue (TTM): $14.52 million
- Net Income (TTM): $1.20 million
- Shares Outstanding: 14.50 million
- Earnings Per Share (EPS): $0.10
- Price-to-Earnings (PE) Ratio: 53.20
- 52-Week Price Range: $3.51 – $6.15
- Day’s Trading Range: $4.33 – $6.15
- Float: 2 million shares
- Debt-to-Equity Ratio: 0.59
Financial Analysis: Profitability and Revenue Growth.
Looking at INLIF’s financial statements for 2023, it was a great year-over-year growth. This year, the company saw a whopping 89.57 percent increase in revenue, going from $6.65 million in 2022 to $12.61 million 2023. Increasing demand for automation in the industrial manufacturing leads to this surge of revenue i.
Revenue and Gross Profit
Solid growth is reported in INLIF’s revenue in the trailing twelve months (TTM), totaled $14.52 million. Also, gross profit during the period under review, stood at $4.37 million and its gross margin was 30.06%. The company is able to maintain a positive margin despite gross margin falling below 34.48 percent as compared to the previous year.
Net Income and Operating Income
For 2023, operating income was $972,369 on a 6.69% operating margin. That compares with operating margin of 6.69% in 2022. Overall profit margin stood at 8.25%, with the year netting in $1.20 million dollars. The company also registered EBITDA ($1.34 million) and EBITDA margin (9.24%).
Key Profitability Metrics
- Gross Margin: 30.06%
- Operating Margin: 6.69%
- Profit Margin: 8.25%
- EBITDA Margin: 9.24%
- EBIT Margin: 6.69%
Research and Development
Throughout the years, INLIF Limited has continuously spent time carrying out research and development (R&D) to ensure its continued leadership. The company’s R&D went up from $0.5 million in 2022 to $1.36 million in 2023. This investment is important due to the ability to further enhance and expand the product offerings of INLIF’s range of manipulator arms.
Balance Sheet Analysis: Assets, Liabilities, and Net Equivalents
INLIF’s balance sheet shows a solid financial position: total asset $16.02 million. Total liabilities are at a relatively low level of $7.06 million for the company. In other words, the firm either issues equity or rights’ issues or sells new securities to enable it to obtain fresh capital for the purpose of running the business or for making investments.
Liquidity and Cash Flow
The current ratio of 1.38 for INLIF speaks for itself: the company generates enough cash flow to cover its short term ends. Yet, the company’s quick ratio of 0.76 suggests that the company can provide more liquid assets to meet its short term liability.
The company INLIF Limited has negative net cash, -3.82 million, cash that is being held on debt considerations. Moreover, the company had an operating cash flow of -$1.50 million, which suggests that some of its operations have been cash intensive.
Total Assets and Liabilities
- Total Assets: $16.02 million
- Total Liabilities: $7.06 million
- Debt-to-Equity Ratio: 0.59
- Cash & Equivalents: $0.95 million
- Net Cash Position: -$3.82 million
Valuation Ratios and Stock Performance
INLIF’s valuation ratios suggest that the company is currently trading at a high premium over earnings. INLIF IMAGE COMPOSING INC exorcises with a price to earnings ratio of 53.20, which is higher than earnings potential. This may be a prime example of how investors are factoring in strong growth from this company while taking into account how hot the industrial machinery market is, along with the company’s growth thus far.
- Key Valuation Ratios
- PE Ratio: 53.20
- Price-to-Book (PB) Ratio: 6.98
- Price-to-Sales (PS) Ratio: 4.39
- EV / Sales: 5.35
- EV / EBITDA: 57.96
The company’s overall valuation, including debt, comes in at $77.77 million for INLIF. At a market cap of $73.95 million, its priced a premium, but that could simply mean it’s growing into a position in the industrial automation sector.
Return on Investment and Operational Efficiency are the two.
Return on equity (ROE) of 14% confirms that INLIF Limited has been able to make sense profit to shareholders. The return on invested capital of 4.73 percent of course shows that the company is profitable, but its invested capital may not be going as far as it could.
Financial Efficiency Metrics
- Return on Equity (ROE): 14%
- Return on Assets (ROA): 4.16%
- Return on Invested Capital (ROIC): 4.73%
- Revenue per Employee: $135,738
- Profits per Employee: $11,199
Conclusion: A Promising Future Amid Challenges
The market response to the IPO of INLIF limited has been good, indicated by its high stock price on its first day of trading. With its solid revenue growth, profitablity and investment in R&D, the company is in good shape future expansion in the global industrial machinery market. Yet it has had to rely on debt and negative cash flow from operations and this could limit future growth. With INLIF growing and scaling, it will be important for its ability to improve in liquidity and operating efficiency in order for it to succeed in the long term.
Key Takeaways
- Revenue Growth: Strong market demand for INLIF’s products has been clearly evidenced by nearly 90 percent increase in its revenue.
- Profitability: All the while the company has maintained healthy profit margins given its operating margin of 6.69% and net income of $1.20 million.
- Valuation: INLIF has a premium valuation of 53.20, which indicates more investors expect high growth from the stock.
- Challenges: Whether debt or equity capital is necessary for future liquidity, the company has a current negative net cash position.
The outcome of INLIF’s task to handle its financial situation and take advantage of market trends may determine its future within the industrial machinery market in the post IPO stage.
Frequently Asked Questions
What is INLIF Limited’s primary business focus?
INLIF Limited designs, manufactures, and sells high-performance manipulator arms for injection molding machines. Its product range includes transverse, single/double-axis manipulators, multi-axis models, and accessories like conveyor belt clamps and reducer mounting plates.
Where is INLIF Limited based, and when was it founded?
INLIF Limited is headquartered in Quanzhou, China, and was founded in 2016.
When did INLIF Limited join NASDAQ, and how did the stock perform on its IPO day?
INLIF listed on NASDAQ on January 2, 2025. Its stock opened at $4.00 per share and closed at $5.10, marking a 14.61% increase.
How is INLIF investing in R&D?
INLIF’s R&D expenses grew from $0.5 million in 2022 to $1.36 million in 2023. This investment supports the development and enhancement of its product offerings.
What does INLIF’s balance sheet indicate about its financial health?
INLIF has total assets of $16.02 million and total liabilities of $7.06 million. However, the company has a negative net cash position of -$3.82 million.
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