DB:GJ7

Stock Analysis Report

Valuetronics Holdings

Executive Summary

Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in the United States and internationally.

Rewards

PE ratio (8.5x) is below the German market (21.1x)

Earnings are forecast to grow 1.93% per year

Earnings grew by 5.3% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Valuetronics Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GJ7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

GJ7

2.6%

DE Electronic

2.0%

DE Market


1 Year Return

6.7%

GJ7

13.4%

DE Electronic

15.1%

DE Market

Return vs Industry: GJ7 underperformed the German Electronic industry which returned 13.9% over the past year.

Return vs Market: GJ7 underperformed the German Market which returned 15% over the past year.


Shareholder returns

GJ7IndustryMarket
7 Day5.3%2.6%2.0%
30 Day-11.1%9.1%1.0%
90 Day-6.8%8.0%3.8%
1 Year14.1%6.7%15.9%13.4%18.6%15.1%
3 Year52.0%25.7%54.4%49.2%16.8%6.6%
5 Year169.9%91.3%121.9%105.8%23.7%6.7%

Price Volatility Vs. Market

How volatile is Valuetronics Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Valuetronics Holdings undervalued compared to its fair value and its price relative to the market?

8.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GJ7 (€0.48) is trading above our estimate of fair value (€0.45)

Significantly Below Fair Value: GJ7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GJ7 is good value based on its PE Ratio (8.5x) compared to the Electronic industry average (33.7x).

PE vs Market: GJ7 is good value based on its PE Ratio (8.5x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: GJ7 is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: GJ7 is good value based on its PB Ratio (1.5x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Valuetronics Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GJ7's forecast earnings growth (1.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: GJ7's earnings (1.9% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: GJ7's earnings are forecast to grow, but not significantly.

Revenue vs Market: GJ7's revenue (2.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: GJ7's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GJ7's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Valuetronics Holdings performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GJ7 has high quality earnings.

Growing Profit Margin: GJ7's current net profit margins (7.6%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: GJ7's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: GJ7's earnings growth over the past year (5.3%) is below its 5-year average (10.3% per year).

Earnings vs Industry: GJ7 earnings growth over the past year (5.3%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: GJ7's Return on Equity (17.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Valuetronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GJ7's short term assets (HK$1.9B) exceed its short term liabilities (HK$950.2M).

Long Term Liabilities: GJ7's short term assets (HK$1.9B) exceed its long term liabilities (HK$10.6M).


Debt to Equity History and Analysis

Debt Level: GJ7 is debt free.

Reducing Debt: GJ7 has not had any debt for past 5 years.

Debt Coverage: GJ7 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GJ7 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GJ7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GJ7's debt is covered by short term assets.


Next Steps

Dividend

What is Valuetronics Holdings's current dividend yield, its reliability and sustainability?

6.33%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: GJ7's dividend (6.33%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: GJ7's dividend (6.33%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: GJ7's dividend payments have been volatile in the past 10 years.

Growing Dividend: GJ7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.4%), GJ7's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GJ7's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Chong Tse (57yo)

13.5yrs

Tenure

0

Mr. Tse Chong Hing has been the Chairman and Managing Director of Valuetronics Holdings Limited since August 26, 2006. Mr. Tse joined HTL in November 1996 as the Assistant to the then Managing Director. He ...


Leadership Team

NamePositionTenureCompensationOwnership
Chong Tse
Chairman & MD13.5yrsno data17.47% HK$37.1m
Kok Chow
Founder & Executive Director13.5yrsno data7.36% HK$15.6m
Ka Lui
Chief Financial Officer2.7yrsno datano data
Jian Yuan Huang
Vice President of Operations7.8yrsno datano data
Luang Chew Chia
Company Secretary4.6yrsno datano data
Keng Lim
Company Secretary4.6yrsno datano data

4.6yrs

Average Tenure

57yo

Average Age

Experienced Management: GJ7's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chong Tse
Chairman & MD13.5yrsno data17.47% HK$37.1m
Kok Chow
Founder & Executive Director13.5yrsno data7.36% HK$15.6m
Tiew Ong
Lead Independent Director0yrsno datano data
Siok Chin Tan
Independent Director5.6yrsno datano data
Cheng Guan Loo
Independent Director4.6yrsno datano data

9.5yrs

Average Tenure

57yo

Average Age

Experienced Board: GJ7's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Valuetronics Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Valuetronics Holdings Limited
  • Ticker: GJ7
  • Exchange: DB
  • Founded: 1992
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: S$319.726m
  • Listing Market Cap: S$212.403m
  • Shares outstanding: 435.00m
  • Website: https://www.valuetronics.com.hk

Location

  • Valuetronics Holdings Limited
  • Technology Park
  • Unit 9-11
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BN2SGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 2007
VHLG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2007
GJ7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2007

Biography

Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in the United States and internationally. It operates through Consumer Electronics (CE), and Industrial and Commercial Electronics (ICE) segments. The company provides EMS services to CE and ICE products covering smart lighting products, printers, temperature sensing devices, communication products, automotive products, and medical equipment. It offers design, engineering, manufacturing, and supply chain support services for electronic and electro-mechanical products; and original equipment manufacturing services, including PCBA and box-build assembly, as well as original design manufacturing services. The company’s design services include mechanical design; plastic tool design; electronics, RF, and software designs; regulatory compliance engineering and testing; and product test development services. Its manufacturing services comprise plastic tool fabrication and injection molding; metal stamping and machining; printed circuit board assemblies, including complex multi-layer boards; sub-assemblies and full product assemblies; reliability engineering and testing; quality systems; materials procurement; and on-site program management services. The company’s supply chain support services comprise shipment of products to final destinations; product customization and drop shipment; warranty and non-warranty repairs; spare parts inventory and shipment; and direct fulfillment programs. It also holds properties; provides trading and business services; and manufactures diagnostic equipment. The company serves multinational and mid-size companies in the telecommunications, industrial, commercial, and consumer fields. Valuetronics Holdings Limited was founded in 1992 and is headquartered in Shatin, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:34
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.