ALP STOCK INVESTMENT CLUB(4Sep2015)
Valuetronic Holding (BN2)
(4 Sep 2015) close: S$0.37
Target price: S$0.50
1.) Sector: Industrials
2.) Core business structure: Consumer Electronics AND Industrial and Commercial Electronics
3.) Segment that generates the highest revenue: Consumer Electronics contributed 60.6% of the group total revenue.
4.) Countries that the business operates: USA, CHINA, Canada, Netherlands and other countries.USA contributed the most for the group total revenue.
5.) Challenges: Significant rising labour costs in the PRC due to annual increases in the minimum wage, continued to impact the group operational cost.
6.) Strengths: Valuetronics continued to benefit from the strong performance in our Industrial and Commercial (“ICE”) segment, due to our continued focus on growing this segment.
7.) Significant events: No significant events reported in the latest 2015 annual report.
8.) GTI Ranking(last column) : 154
10.) Recommendation: Hold. Revenue decreases, mainly attributable to the slowdown in demand from the Group main Consumer Electronic (“CE”) customers in the LED lighting business.
COMPILED BY: Zheng Wei
DISCLAMER: Readers should not rely solely on information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.