Valuetronics - UOB Kay Hian 2024-06-05: FY24 Within Expectations; New Customers To Start The Next Chapter Of Growth

Valuetronics - FY24 Within Expectations; New Customers To Start The Next Chapter Of Growth

Valuetronics (SGX:BN2) | SGinvestors.ioValuetronics (SGX:BN2)
  • Valuetronics's FY24 gross profit grew 1% y-o-y as margins expanded from its rebalanced customer portfolio, offsetting revenue decline due to lower material costs, improved supply chain visibility and lower labour costs.
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FY24 earnings in line with expectations.

  • Valuetronics (SGX:BN2)’s FY24 net profit of HK$160m (+30% y-o-y) was in line with our expectations, equal to our full-year estimate.
  • Revenue fell 17% y-o-y to HK$1,670m, on lower demand from some existing industrial and commercial electronics (ICE) and consumer electronics (CE) customers. However, gross profit improved 1.3% y-o-y to S$265m. Interest income also jumped 160% y-o-y to HK$55m from US Fed rate hikes, contributing to the improved net margin (+3.5ppt y-o-y)..

Gross margin expansion on better portfolio mix.

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  • Valuetronics's gross margin expansion was also attributable to the following factors:
    1. stabilising material costs from component shortage relief due to improved supply chain visibility, and
    2. lower labour costs and manufacturing overheads in China due to depreciation of the Renminbi.

25% y-o-y higher total dividend for FY24.

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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 @

John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | 2024-06-05

Read also UOB's most recent report:
2024-06-28 Valuetronics - Foray Into The AI Industry With Goal For Further Expansion In The Near Term.

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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