Maintain SELL
Maintain SELL with de-rating catalysts expected from further sets of weak results, especially from lighting. TP unchanged at SGD0.25 or 4.4x FY16E EPS, based on zero value for its lighting business and 4-6x PER for its non-lighting Industrial businesses.
-- I don't think the share price should go below 30 cents. Even now at 34, it's trading at abt 5X PE for this FY and next FY. That's going by Ms Truong's own pessimistic analysis.
DBS Vickers:
Valuation
The stock (35 cents) is cheap at 6.4x FY15, with about half of its market cap backed by net cash. Our target price of S$0.41 is based on historical mean of 1.14x PB multiple.
We have conservatively adopted PB valuations due to uncertainty at its Lighting business.
Valuetronics remains exceptional in generating positive free cashflows to sustain its attractive dividend payment, with FY15F yield of about 6.2% now. No changes to our earnings forecast and TP. Maintain BUY for long-term investment horizon.
Now trading at 40 cents! I'm thankful for Ms Truong's report; how else could I have been able to buy some more at 30 cents? To survive in this market, one's got to know what we're buying and hold steadfastly on to that knowledge.
Price is consolidating and holding well at 39 cents.
One positive factor is the strong rise in HKD and this is positive for Valuetronics. Given the potential of USD moving up in 2015, we should expect HKD to strengthen further.
Founder of Valuetronics Chow Kok Kit had a negative surprise for the market. Dumped 36 m shares at 34 cents (a share). Ok maybe 'dumped' is not the correct word. After all, there was a buyer in this married deal who saw ...it a gem at this price. LOL.
Chow reduced his stake from 17.28% to 7.67%. He could be planning to retire from the company/??
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