Valuetronics - Tight Range Bound

Valuetronics (S$0.64, up 1.5 cents) saw FY21 revenue decrease by

3.1% to HK$2,281.5mln from HK$2,354.4mln in FY2020. However,

gross profi t increased by 6.5% to HK$386.2mln in FY2021 (FY2020:

HK$362.8mln), with gross profi t margin up 1.5 percentage points to

16.9% for FY2021 due to a change in product sales mix during the

year.

Valuetronics (BN2) logged a profit attributable to owners of HK$187.1 million ($24.1 million), or HK$0.43 per share, for the fiscal year 2021, up from HK$178.9 million, or HK$0.412 per share, a year ago.

Revenue for the 12 months ended March 31 dropped 3.1% year over year to HK$2.28 billion from HK$2.35 billion, according to a Saturday bourse filing.

The engineering services company's board also declared an interim cash dividend of HK$0.05 per share and a final cash dividend of HK$0.16 per share for the fiscal year.

Valuetronics’ chairman and managing director Ricky Tse Chong Hing said the group is expecting a significantly lower financial results for FY2022 compared to FY2021 on the back of loss of orders from customers switching their supply chain to other countries due to Sino-US trade tensions, compounded with the uncertainties resulting from the global components shortage and evolving COVID-19 pandemic.

“On the other hand, our Vietnam expansion is proceeding according to schedule during the year. We are targeting the new Vietnam campus to commence production by the end of FY2022. By then, we will be fully equipped to serve customers’ multi-site production strategy as a means to mitigate Sino-US trade tensions, and we will be seeking out new opportunities emerging with our extended geographic footprint,” the chairman said.

Support at 0.60

Resistance at 0.65

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