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BN2

Valuetronics Holdings SGX:BN2 Stock Report

Last Price

S$0.53

Market Cap

S$228.1m

7D

-0.9%

1Y

-6.2%

Updated

17 Aug, 2022

Data

Company Financials +
BN2 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health6/6
Dividends2/6

BN2 Stock Overview

Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in Hong Kong, the United States, the People's Republic of China, Poland, Indonesia, Vietnam, France, Germany, South Korea, the Netherlands, and internationally.

Valuetronics Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Valuetronics Holdings
Historical stock prices
Current Share PriceS$0.53
52 Week HighS$0.61
52 Week LowS$0.51
Beta0.78
1 Month Change-0.94%
3 Month Change0%
1 Year Change-6.19%
3 Year Change-15.87%
5 Year Change-43.92%
Change since IPO108.21%

Recent News & Updates

Shareholder Returns

BN2SG ElectronicSG Market
7D-0.9%-0.5%-0.4%
1Y-6.2%-4.7%0.9%

Return vs Industry: BN2 underperformed the SG Electronic industry which returned -4.7% over the past year.

Return vs Market: BN2 underperformed the SG Market which returned 0.9% over the past year.

Price Volatility

Is BN2's price volatile compared to industry and market?
BN2 volatility
BN2 Average Weekly Movement2.3%
Electronic Industry Average Movement5.8%
Market Average Movement4.6%
10% most volatile stocks in SG Market12.3%
10% least volatile stocks in SG Market2.2%

Stable Share Price: BN2 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BN2's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992n/aChong Hing Tsehttps://www.valuetronics.com.hk

Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in Hong Kong, the United States, the People's Republic of China, Poland, Indonesia, Vietnam, France, Germany, South Korea, the Netherlands, and internationally. It operates in two segments, Consumer Electronics (CE), and Industrial and Commercial Electronics (ICE). The company provides EMS services to CE and ICE products covering smart lighting products, printers, temperature sensing devices, communication products, and automotive products.

Valuetronics Holdings Fundamentals Summary

How do Valuetronics Holdings's earnings and revenue compare to its market cap?
BN2 fundamental statistics
Market CapS$228.06m
Earnings (TTM)S$19.97m
Revenue (TTM)S$356.59m

11.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BN2 income statement (TTM)
RevenueHK$2.03b
Cost of RevenueHK$1.75b
Gross ProfitHK$274.82m
Other ExpensesHK$161.27m
EarningsHK$113.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin13.55%
Net Profit Margin5.60%
Debt/Equity Ratio0.0%

How did BN2 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

54%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BN2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BN2?

Other financial metrics that can be useful for relative valuation.

BN2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA2.1x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does BN2's PE Ratio compare to its peers?

BN2 PE Ratio vs Peers
The above table shows the PE ratio for BN2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.4x
8AZ Aztech Global
8.1x14.3%S$725.6m
C33 Chuan Hup Holdings
38.9xn/aS$208.2m
V03 Venture
15.5x6.8%S$5.3b
BDF Excelpoint Technology
7.3xn/aS$231.2m
BN2 Valuetronics Holdings
11.3x7.2%S$228.1m

Price-To-Earnings vs Peers: BN2 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (17.4x).


Price to Earnings Ratio vs Industry

How does BN2's PE Ratio compare vs other companies in the Asian Electronic Industry?

Price-To-Earnings vs Industry: BN2 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the SG Electronic industry average (11.4x)


Price to Earnings Ratio vs Fair Ratio

What is BN2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BN2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio9.1x

Price-To-Earnings vs Fair Ratio: BN2 is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).


Share Price vs Fair Value

What is the Fair Price of BN2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BN2 (SGD0.53) is trading below our estimate of fair value (SGD0.64)

Significantly Below Fair Value: BN2 is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BN2's forecast earnings growth (7.2% per year) is above the savings rate (1.8%).

Earnings vs Market: BN2's earnings (7.2% per year) are forecast to grow slower than the SG market (12.3% per year).

High Growth Earnings: BN2's earnings are forecast to grow, but not significantly.

Revenue vs Market: BN2's revenue (6% per year) is forecast to grow slower than the SG market (7.6% per year).

High Growth Revenue: BN2's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BN2's Return on Equity is forecast to be low in 3 years time (9.1%).


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Past Performance

How has Valuetronics Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BN2 has a high level of non-cash earnings.

Growing Profit Margin: BN2's current net profit margins (5.6%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: BN2's earnings have declined by 5.1% per year over the past 5 years.

Accelerating Growth: BN2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BN2 had negative earnings growth (-39.3%) over the past year, making it difficult to compare to the Electronic industry average (4.4%).


Return on Equity

High ROE: BN2's Return on Equity (8.3%) is considered low.


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Financial Health

How is Valuetronics Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BN2's short term assets (HK$1.7B) exceed its short term liabilities (HK$724.1M).

Long Term Liabilities: BN2's short term assets (HK$1.7B) exceed its long term liabilities (HK$3.0M).


Debt to Equity History and Analysis

Debt Level: BN2 is debt free.

Reducing Debt: BN2 has not had any debt for past 5 years.

Debt Coverage: BN2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BN2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BN2's dividend (4.65%) is higher than the bottom 25% of dividend payers in the SG market (2.27%).

High Dividend: BN2's dividend (4.65%) is low compared to the top 25% of dividend payers in the SG market (6.02%).


Stability and Growth of Payments

Stable Dividend: BN2's dividend payments have been volatile in the past 10 years.

Growing Dividend: BN2's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53.7%), BN2's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: BN2 is paying a dividend but the company has no free cash flows.


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Management

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

7.1yrs

Average management tenure


CEO

Chong Hing Tse (60 yo)

16yrs

Tenure

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

Experienced Management: BN2's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: BN2's board of directors are considered experienced (8.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Valuetronics Holdings Limited
  • Ticker: BN2
  • Exchange: SGX
  • Founded: 1992
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Implied Market Cap: S$228.063m
  • Shares outstanding: 426.29m
  • Website: https://www.valuetronics.com.hk

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.