Valuetronics - UOB Kay Hian 2025-11-14: Deeply Undervalued With Good Prospects From Rising Margins & Shareholder Returns; Target Price Up 24%

• Valuetronics (SGX:BN2)'s 1HFY26 PATMI of HK$93.0m (+2.7% y-o-y) and revenue of HK$836.6m (-3.0% y-o-y) were in line, at 52% of our full-year forecasts.

Gross margin expansion on better portfolio mix.

• - Read this at SGinvestors.io -
• Gross margin expansion was also attributable to:
  1. a strategic focus on strengthening customer acquisition, and
  2. rebalancing its product portfolio toward higher-margin offerings.

Interim dividend maintained.

• Valuetronics declared an unchanged interim dividend of 4 HK cents/share and a special dividend of 4 HK cents/share, implying a dividend payout ratio of 35.0% in 1HFY26.

Valuation remains attractive on P/E and dividend yield basis.

• - Read this at SGinvestors.io -
• Valuetronics’ FY27 dividend yield of 6% is also 100% higher than the peers’ average of 3.0%. Even excluding its large net cash balance, valuations remain undemanding.

Reducing stake in Trio AI JV to bring in new strategic investor.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-12-11 Valuetronics - High Conviction BUY; Most Attractively Valued Vs Peers & Ample Upside From Better Capital Management.

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