Stock Name: Valuetronics
Company Name: VALUETRONICS HOLDINGS LIMITED
UOB KayHian in an Aug 16 research report says: "Valuetronic's (VHL) 1Q12 revenue grew 33.4% y-o-y to HK$527.1 million largely due to growth in the OEM and ODM segments. Net profit grew by 9.5% y-o-y to HK$31.6 million, proportionally slower than revenue due to increased fixed costs arising from the expansion of the licensing business.
"Gross profit margin declined marginally from 16.7% in 1Q11 to 16.0% in 1Q12, attributed to a change in product mix. We maintain our earnings estimates, expecting 12.8% and 14.2% y-o-y growth in FY2012F and FY2013F respectively. A lower target price of 33 cents (previously 34 cents), adjusting for a weaker Hong Kong dollar against the Singapore dollar.
"Our target price is pegged to 5.5x FY12F PE, a 31.5% discount to peers' average FY12F PE of 8.0x (excl. Foxconn). We estimate that the stock is trading at 10.3% FY2012 dividend yield. MAINTAIN BUY."
Company Name: VALUETRONICS HOLDINGS LIMITED
| Research House: UOB KayHian | Price Call: BUY | Target Price: 0.33 |
UOB KayHian in an Aug 16 research report says: "Valuetronic's (VHL) 1Q12 revenue grew 33.4% y-o-y to HK$527.1 million largely due to growth in the OEM and ODM segments. Net profit grew by 9.5% y-o-y to HK$31.6 million, proportionally slower than revenue due to increased fixed costs arising from the expansion of the licensing business.
"Gross profit margin declined marginally from 16.7% in 1Q11 to 16.0% in 1Q12, attributed to a change in product mix. We maintain our earnings estimates, expecting 12.8% and 14.2% y-o-y growth in FY2012F and FY2013F respectively. A lower target price of 33 cents (previously 34 cents), adjusting for a weaker Hong Kong dollar against the Singapore dollar.
"Our target price is pegged to 5.5x FY12F PE, a 31.5% discount to peers' average FY12F PE of 8.0x (excl. Foxconn). We estimate that the stock is trading at 10.3% FY2012 dividend yield. MAINTAIN BUY."
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