For FY17, sales grew 16.5% on year, largely due to increased orders from existing customers.
Consumer electronics (CE) sales rose 19.7% to HK$987.1 million in FY17, driven by new IoT products such as smart lighting. Industrial and consumer electronics (ICE) segment revenue rose by 14.1% to HK$1.3 billion in FY17 due to new orders from existing customers.
In a Tuesday report, analyst Nicholas Leow says Valuetronics should continue to see double-digit growth in FY18. Growth should be driven by sales growth of wireless lighting product with smart control features and by the automotive segment which UOB estimates formed about 10-15% of total sales for FY17.
Valuetronics is also in the process of being audited by another car brand with approval expected by late-FY18. “We have forecasted 11% revenue growth rates each for the ICE and CE segments in FY18,” says Leow.
As of end March, the group had net cash of HK$752.9 million or about 39% of current market capitalisation. Valuetronics has no debt. The company offers a dividend of HK$0.20/share for FY18, implying a yield of 4.5% which Leow says is “attractive and sustainable”.
Shares of Valuetronics are trading 1 cent lower at 80 cents.
