SINGAPORE (May 30): UOB Kay Hian is downgrading Valuetronics to a “hold” on valuation grounds with entry and target prices of 72 cents and 80 cents respectively as most positives have been priced in.
Valuetronics posted strong 4Q numbers, which brought FY17 net profit 27.9% higher to HK$154.1 million ($27.4 million), thanks to higher demand in the consumer electronics and industrial & commercial electronics segments.
For FY17, sales grew 16.5% on year, largely due to increased orders from existing customers.
Consumer electronics (CE) sales rose 19.7% to HK$987.1 million in FY17, driven by new IoT products such as smart lighting. Industrial and consumer electronics (ICE) segment revenue rose by 14.1% to HK$1.3 billion in FY17 due to new orders from existing customers.