Valuetronics FY26 - UOB Kay Hian 2026-05-29: Positive Capital Management; Raise Target Price By 83%

• Valuetronics (SGX:BN2) raised its dividend payout ratio and stepped up its capital management plan to return HK$300m via buyback and special dividend over two years.

• - Read this at SGinvestors.io -

FY26 revenue in line.

• Revenue came in at HK$1.65b (-4% y-o-y), meeting 101% of our forecast. Industrial and commercial electronics (ICE) revenue rose to a record HK$1,446m (+6% y-o-y) as the network-access-solutions customer continued to see growth in FY26.

• In the consumer electronics (CE) segment, revenue fell 42% y-o-y to HK$214m in FY26 due to the phase-out of legacy products in the traditional consumer lifestyle product.

Weaker-than-expected earnings due to one-off impairment.

• - Read this at SGinvestors.io -

Payout policy upgraded to 50-70%.

• Management declared a final dividend of 14 HK cents/share and special dividend of 16 HK cents/share, bringing total FY26 Valuetronics's dividends to 38 HK cents, up 41% y-o-y (FY25: 27 HK cents). This translates to 100% of adjusted EPS.

• Concurrently, management announced a revised dividend policy to 50-70% of net profit (30-50% previously), effective immediately.

HK$300m capital return not yet priced in.

• Read more at SGinvestors.io.

John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian Research | https://research.uobkayhian.com/ 2026-05-29

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