Food Empire .....

trailing PE is 12.6X, which is very low compared to its peer, SUPER, which is doingg 23.6X.




 

Couldn't keep up the strong run. Stock price expected to weaken today after 1Q13 result showed that net profit decreased by 18.7% to HK$25.7 million.

Net profit margin was 4.1% (Q1 FY2012: 6.0%).

sharing what starlene says after AGM today:

Not much upside for this counter
record profits and revenue for FYE 31Mar 2012 yet price stagnated at 25-26cts
the CEO and His ED sold 14mil and 12mil not long ago create an overhang..
dividends 17cts vs 14cts last year though no bonus despite this is the 20th year of co's inception..
CEO not consider dual listing in H K though co's primary operations in PRC..

realted co's transactions of HKD 3mil since ipo inception in 2007 as verified by indep director..

very embarassing when U see everybody rushed for food and like last year at Amaara Hotel nothing is left after the 10th person help himself..same scenario at M.Hotel today...

cheapskate co..probably co directors flown in and package deal stayed at M Hotel and the meagre food is served free..ie co doesn't border to cater food for everyone though this is a once a year affair..

lucky i went after a heavy breakfast

Your point is valid but, ethan999, if you examine the profit of the last five years, Valuetronic has not lost money. It does inspire confidence.

However, what worries me is that the Chairman & MD sold off his shares so drastically. From 22% to 18% in March -- why ???? The married deal was at 24 cents. 

Valuetronics does indeed offer an impressive dividend yield. One thing that holds me back though is the low net profit margin of only 5%. Problem with low margins is that they can easily turn to losses even if costs escalate just a little.

We recently saw this problem with Xinren Aluminum as well, which has great revenue but very low margins that recently turned into losses due to decreased aluminum prices. 

VALUETRONICS lives up to its name, in the sense that its stock price has been resilient at around 22-24 cents despite the crisis of 2011. It's a yield stock.

latest announcement ----- 16 HK c final div and 1 c special div.
Yield = 13-14 %.

From OCBC Research

"Valuetronics Holdings: 1QFY12 results within expectations

Summary: Valuetronics Holdings Limited’s (VHL) 1QFY12 results were in-line with our expectations. Revenue of HK$527.1m (+33.4% YoY; -0.9% QoQ) was 3.7% above our estimates while net profit of HK$84.2m (+9.5% YoY; +12.7% QoQ) was just 0.8% higher than our forecasts. The group’s strong sales momentum was driven largely by its OEM segment, which posted a stellar 36.1% YoY growth. Its ODM and Licensing segment also delivered sales growth, although gross profit margin declined 70 bps YoY to 16.0% due to a change in sales mix. Moving forward, we are encouraged by the addition of new OEM customers to VHL’s portfolio. However, we lower our target peg on VHL from 8x to 7x FY12F EPS as we take into account the uncertain global economic landscape and also update our HKD/SGD assumptions. This in turn lowers our fair value estimate to S$0.41 (previously S$0.49). Nevertheless, with VHL now trading at 3.4x FY13F PER, against our projected EPS CAGR of 12.3% from FY11-FY13F and ROE of 26.0% in FY12F, we opine that valuations appear attractive. Reiterate BUY. "

What is everyone waiting for?

penghock, i agree that Valuetronics should be valued at a higher price than current 30 cents.

good news for Valuetronics??

http://www.bloomberg.com/news/2011-06-15/led-lighting-prices-to-plummet-by-2015-vantagepoint-ceo-says.html

Incandescent bulbs are being phased out in Europe. In the U.S., efficiency policies will eliminate the 100-watt bulb in 2012. LED makers stand to gain a bigger share of the $40 billion a year global lighting market. Bulb companies including General Electric Co. (GE) and Koninklijke Philips Electronics NV (PHIA) are producing LEDs, and Salzman said startups that are developing low-cost LEDs will take a slice of the market. “We’re just at the beginning of the LED phase,” Salzman said. “There’s very little quality product yet even on the shelves.”

Salzman said that within five years, the use of LEDs for general lighting purposes may grow to more than 50 percent of the market from less than 1 percent today. Analysts including Ben Schuman at Pacific Crest Securities Inc. said it may take more time than Salzman suggest for the LED boom to happen. “About half of lighting is residential, and it’s going to take longer than five years for payback periods for residential lighting to expand the market beyond early adopters,” said Schuman, who follows LED maker Cree Inc. “More recently, folks have become more optimistic about the consumer market. But I still think it looks like we’ll see industrial and outdoor, followed by commercial, followed by residential.” Salzman said that it’s the commercial market that may take more time to develop. “All consumer stuff will go,” Salzman said. “Commercial, where you have the fluorescent tubes -- that will take a little longer. I think it’s going to be one of the fastest clean-tech sectors to flip.”

hi greenrookie,

I got Qingmei, JES and Midas. Just think the risk are too high than the return, if anything happened to these PRC company.

dear garl,

i will try avoid s chip for now. actually i am considering to cut loss all my holding of s chip.

dear penghock: what do you think of Eratat? The earnings are strong, in my view, but the troubling thing is the accounts receivables which are high. What's the pt of doing business, and not collecting yr cash from yr clients? What do you think?

I also don't have much recommendations, because it's really a bad market now.

You may want to take a look at Jaya Holdings, which trading under NAV. I like it because US dollars keep dropping and their debts in US dollars will get lesser and lesser.. :D

Now also searching around gems like Valuetronics. 

dear penghock, i don't own valuetronics but i wish i had bought it at 23 cents. nvr mind, market is always like that --- there are those that escape from you becos you are not convinced enough. Valuetronics was a sleepy stock for so long, tho the valuation was sexy.

Anyway, can gv me yr best stock idea? maybe I can make some $ in turn. hahaha....

thanks, garl for highlighting this undervalued stock in this forum..

now 30.5 cents.. yippee

Valuetronics closed up 2 cents today at 29 cents. The APF Screener has signalled a buy on this stock for a while already, as the FA & TA were aligned.

For more info on the Screener, click WHAT STOCKS TO BUY?

Valuetronics is gaining traction. Now at 27.5 cents, +0.5 ct.