- Valuetronics’s 1HFY24 net profit of HK$82.1m (+42% y-o-y/+26% h-o-h) was above our expectations, making up 61% of our estimate. 1HFY24 revenue (-15% y-o-y) declined due to lower customer demand. However, margins have improved from better supply chain visibility and reduced labour costs.
- - Read this at SGinvestors.io -
1HFY24 results above expectations; other income doubled from rate hikes.
- Valuetronics (SGX:BN2)’s 1HFY24 (Apr to Sep 2023) net profit of HK$82.1m (+42% y-o-y, +26.1% h-o-h) was above our expectations, making up 61% of our full-year estimate. Revenue fell 15.2% y-o-y due to lower demand from some of its industrial and commercial electronics (ICE) customers.
- - Read this at SGinvestors.io -
- lower labour costs in China, stemming from stabilisation in the labour supply as well as depreciation of the Renminbi.
- The surge in other income to HK$28.8m (+123% y-o-y), mainly from rising interest income as a result of the US Fed rate hikes, also led to net margin expansion to 9.2% (+3.7ppt y-o-y).
ICE segment’s revenue fell but margins expanded.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-11-16
Previous report by UOB:
2023-06-09 Valuetronics - FY23 Slightly Above Expectations, Conservative Amid Global Headwinds.
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
