Valuetronics - Phillip Securities 2023-11-13: Returning To Growth, Trading At Around 90% Cash

Valuetronics - Returning To Growth, Trading At Around 90% Cash

Valuetronics (SGX:BN2) | SGinvestors.ioValuetronics (SGX:BN2)
  • Valuetronics (SGX:BN2)'s 1H24 PATMI grew 42% y-o-y to HK$82.1mil, and above our expectations. Revenue and PATMI were 42%/62% of our FY24e estimates. Revenue decline was due to lower component prices. Valuetronics announced a special dividend of HK$0.04 in addition to interim HK$0.04.
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  • an increase in interest income; and
  • lower operating expenses, especially depreciation.
  • We raise our FY24e PATMI forecast for Valuetronics by 15% and maintain our BUY recommendation. Our target price is raised from S$0.61 to S$0.70.
  • With the current cash hoard of HK$1.143bn (or S$199mil), around 90% of Valuetronics's market capitalisation is net cash.

The Positives

Recovery in margins.

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  • Despite the increase in capex over the past three years, depreciation fell as most of the spending was on property and fittings which have a slower depreciation rate than equipment.

Unprecedented special dividend after interim results.

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Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @

Paul Chew Phillip Securities Research | 2023-11-13

Read also Phillip's most recent report:
2024-06-03 Valuetronics - Get Paid As Customer Base Is Refreshed.

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 Dividends & Corporate Actions,
Valuetronics News Articles


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