- After 5 years of revenue decline, we expect a turnaround for Valuetronics after securing four new customers for FY24e/FY25e. Its new factory in Vietnam will allow customers to de-risk from a China supply chain faced with high US tariffs and escalating geopolitical tension.
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- We initiate coverage on Valuetronics with a BUY recommendation and target prices of S$0.61. We peg our target price to industry valuations of 11x P/E 1-year forward earnings.
- Valuetronics has an existing share buy-back plan to purchase an estimated 60mil shares (or S$32m) at the current price.
About Valuetronics
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- Valuetronics is an electronics manufacturing services (EMS) provider with 80% of revenue from industrial and commercial electronics (ICE), and 20% from consumer electronics (CE). EMS services that Valuetronics provides include design, printed circuit board assembly (PCBA), full box build or module assembly and manufacturing of plastic and metal components.
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