Valuetronics - Phillip Securities 2024-11-14: Buying The Cash

• Valuetronics's 1HFY25 revenue was within our estimates at 49% of FY25e forecasts. PATMI was better than expected at 55% of our FY24e forecast due to higher gross margins and lower effective tax.
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• Valuetronics is investing HK$222mil (S$38mil) to purchase MetaX GPUs for their AI venture in Hong Kong.
• Stable cash from operations of HK$201mil is more than sufficient to cover the current payout of HK$82mil or (5.7% yield). However, share buybacks have been a disappointment. There were 3.7mil shares bought back, but 4.1mil share options were issued to employees at a lower price.
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The Positives

Margin at 4-year highs.

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Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Previous report by Phillip:
2024-07-01 Valuetronics - Trying A CoreWeave Mini-Me.

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 Dividend Payout Dates & Corporate Actions,
Valuetronics News