To cap it off, the company plans to pay a final dividend of 11 HK cents and a special dividend of 8 HK cents.
This brings the total for FY2025 to 27 HK cents - the highest payout since FY2018, "reflecting Valuetronic's commitment to shareholder returns," state Cheong and Mo.
This current FY2026, the company expects to "remain profitable" despite the volatile trade environment fraught with tariff risks.
Cheong and Mo point out that the company's integrated manufacturing base in Vietnam and "established core strengths" in China are seen to support "operational resilience".
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The analysts also note that many of the US customers have already shifted production from China to Vietnam.
"This early relocation has helped Valuetronics mitigate the impact of ongoing trade tensions," state Cheong and Mo.
Meantime, it is expanding its capacity in Vietnam by around 30% so as to be ready to support future orders fulfilment.
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Another positive aspect of Valuetronics is its share HK$250 million share buyback programme which was introduced in Feb 2022, and which is continuing this current FY.
The analysts also observed that Valuetronics has maintained a strong net cash position of HK$1.1 billion, equal to two-thirds of its market cap, and has no borrowings.
The higher target price takes into account stronger demand from four new customers plus contributions from a joint venture.
Cheong and Mo note that Valuetronics is trading at only 3x FY2026 net cash PE and offers FY2026 yield of 6.8%.
Valuetronics shares gained 2.19% as at 4.07 pm to trade at 70 cents.
