- 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.
- - Read this at SGinvestors.io -
- 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.
- - Read this at SGinvestors.io -
- 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.
- Read more at SGinvestors.io.
