Valuetronics - DBS Research 2022-05-27: Headwinds To Persist

• Weak FY22 results due to supply disruptions, in line.
• Margin pressure to persist; financial position remains strong with 69% cash-to-market cap ratio.
• Cut FY23F/24F earnings forecast for Valuetronics by 18%/23% on weaker margin assumption.

Weak FY22 results due to supply disruptions, in line

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CE outperformed ICE, but it is not sustainable.

• Revenue for the Consumer Electronics (CE) segment was up 3.8% to HK$706.9m and accounts for 35.9% of total revenue, up from 29.8% in FY21. This was mainly due to the rebound of orders from smart lighting customers. However, this is not expected to continue due to lower customer forecasts and the component shortage.
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Margin pressure.

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Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2020-11-12 Valuetronics - 1HFY21 Earnings Above Our Expectations; HOLD On To Value.

Price targets by other brokers at Valuetronics Target Prices.

Listing of research reports at Valuetronics Analyst Reports.

Relevant links:
Valuetronics Share Price History,
Valuetronics Announcements,
Valuetronics Dividend Payout Dates & Corporate Actions,
Valuetronics News