Valuetronics

Valuetronics 1Q earnings fall 3.1% to $8.5 mil on lower customer demand

SINGAPORE (Aug 14): Valuetronics Holdings reported earnings fell 3.1% to HK$48.1 million ($8.5 million) in 1Q20 from HK$49.7 million in 1Q19.

This came on the back of a 7.1% decline in revenue to HK$654.3 million from HK$704.0 million a year ago, due to the weaken consumer and business confidence under the uncertain macro-environment.

Valuetronics kept at 'buy' on compelling valuations following trade tension fears

SINGAPORE (June 12): Maybank Kim Eng Research is keeping its “buy” recommendation on Valuetronics with an unchanged target price of 99 cents – implying an upside of more than 50% from its current trading price.

A Hong Kong-based electronics manufacturing services provider with two facilities in China, Valuetronics has found itself caught in the middle of escalating tensions between US and China.

Since late-April, Valuetronics’ share price has fallen some 10%, in part due to the US-China trade war.

NetLink NBN Trust, Singtel among UOB's top alpha picks for Feb

SINGAPORE (Feb 8): UOB Kay Hian is maintaining its “buy” call on NetLink NBN Trust considering its dominant market share of 90% and 34% for residential and non-residential fibre connections, respectively, where growth is projected at a three-year CAGR of 6.2%-8.5% for FY18-21.

In a Friday report, analyst Jonathan Koh highlights NetLink’s current relationship with TPG Telecom as the latter’s provider of non-building address point (NBAP) connections for backhaul transmission.

Venture Corp the safest bet amid tech sector volatility, says Maybank

SINGAPORE (Jan 8): Maybank Kim Eng remains “neutral” on Singapore’s technology sector while lowering its target prices across the relevant stocks under its coverage.

This comes after the research house cut its earnings forecasts to factor in heightened macro uncertainties, as well as higher cost of equity due to increased volatility within the sector.

Why Valuetronics is UOB's only 'buy' pick among small-cap manufacturers

SINGAPORE (Nov 27): UOB Kay Hian is naming Valuetronics as its top pick among the small-cap manufacturing companies under its coverage.

This comes after Sunningdale and Memtech missed the research house’s net profit forecasts over the 3Q18 earnings reporting season. Both have been rated “hold” with $1.50 and 91-cent price targets, respectively.

Automotive products to drive Valuetronics' growth

SINGAPORE (May 30): Analysts are staying positive on Valuetronics Holdings on the back of its Industrial and commercial electronics (ICE) and automotive segments, which are expected to continue to drive growth in FY19.

This comes after Valuetronics on May 25 announced that its FY18 earnings were 32.9% higher at HK$204.7 million ($35.1 million), compared to HK$154.1 million in FY17.

Valuetronics’ fundamentals remain intact despite selldown

SINGAPORE (Apr 30): RHB maintains Valuetronics still presents a “buy” despite its recent selldown, saying its fundamentals remain intact, especially its Industrial & Commercial Electronics (ICE) and automotive segments.

Since Valuetronics’ Dutch MNC customer -- said to be Phillips -- reported a 1Q18 ended Sept earnings miss due to weak sales at its home lighting division, Valuetronics’ shares have slumped 25% since.

Weak earnings announced by its peers as well as soft sentiment in the electronics and semiconductor sector also contributed to the share price decline.

Valuetronics started at 'buy' by Maybank on rising demand for home IOT and car connectivity products

SINGAPORE (Mar 23): Maybank Kim Eng is starting coverage of Valuetronics at "buy" given the stock is on the cusp of a spectacular lift-off.

Maybank says this is due to rising demand for home IOT and car connectivity through a certain smart-lighting customer and Aptiv, the self-driving and connected car tech company.

Valuetronics also boasts robust customer relationships, strong and agile execution and efficient working-capital management.

Valuetronics announces record 2Q earnings of $8.9 mil on higher revenue; declares 7 HK cents dividend

SINGAPORE (Nov 9): Electronics manufacturer Valuetronics Holdings posted record earnings of HK$50.8 million ($8.9 million) for 2Q18, up 33.5% from HK$38.1 million a year ago on higher revenue.

Group revenue grew 26.5% to HK$725.7 million over the quarter from HK$573.7 million a year ago on higher contributions from both Consumer Electronics (CE) and Industrial & Commercial Electronics Segments (ICE), which grew 45.7% and 10.5% to HK$380.4 million and HK$345.3 million respectively.

What next for Valuetronics after 1Q results beat?

SINGAPORE (Sept 28): CIMB Research is reiterating its “add” call Valuetronics for its three-year EPS CAGR of 15.3%, 4.4% dividend yield and undemanding valuation of 10.4x CY18 earnings.

“We expect the robust sales momentum to sustain after the 1QFY18 results beat, underpinned by double-digit revenue growth in wireless light bulbs, transaction printers and automotive connectivity modules,” says lead analyst Ngoh Yi Sin in a Monday report.

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