SGX:BN2

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

4.0%

BN2

4.6%

SG Electronic

1.1%

SG Market


1 Year Return

0.8%

BN2

4.0%

SG Electronic

0.9%

SG Market

Return vs Industry: BN2 underperformed the SG Electronic industry which returned 4% over the past year.

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


Shareholder returns

BN2IndustryMarket
7 Day4.0%4.6%1.1%
30 Day-0.8%1.4%-1.9%
90 Day-9.2%2.9%-6.5%
1 Year7.6%0.8%9.7%4.0%4.9%0.9%
3 Year68.5%41.9%72.5%49.2%15.2%2.9%
5 Year192.7%111.8%75.1%40.2%11.2%-7.1%

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

Valuation

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

8.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BN2 (SGD0.65) is trading above our estimate of fair value (SGD0.51)

Significantly Undervalued: BN2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BN2 is good value based on its PE Ratio (8.1x) compared to the Electronic industry average (12x).

PE vs Market: BN2 is good value based on its PE Ratio (8.1x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: BN2 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: BN2 is overvalued based on its PB Ratio (1.3x) compared to the SG Electronic industry average (0.8x).


Next Steps

Future Growth

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

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BN2's forecast earnings growth (3.5% per year) is above the savings rate (2.3%).

Earnings vs Market: BN2's earnings (3.5% per year) are forecast to grow slower than the SG market (5.7% per year).

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

Revenue vs Market: BN2's revenue (1.8% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: BN2's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BN2's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Valuetronics Holdings performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BN2's earnings have grown by 9.6% 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 (-3.7%) over the past year, making it difficult to compare to the Electronic industry average (1.2%).


Return on Equity

High ROE: BN2's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: BN2 has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: BN2 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Valuetronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BN2's short term assets (HK$1.8B) exceeds its short term liabilities (HK$885.5M)

Long Term Liabilities: BN2's short term assets (1.8B) exceeds its long term liabilities (10.9M)


Debt to Equity History and Analysis

Debt Level: BN2 is debt free.

Reducing Debt: BN2 had no debt 5 years ago.

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

Inventory Level: BN2 has a high level of physical assets or inventory.

Debt Coverage by Assets: BN2's debt is not covered by short term assets (assets are -4.0978343081437E+18x debt).


Next Steps

Dividend

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

6.77%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.5%markettop25%5.6%industryaverage4.5%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BN2's dividend (6.77%) is higher than the bottom 25% of dividend payers in the SG market (2.46%).

High Dividend: BN2's dividend (6.77%) is in the top 25% of dividend payers in the SG market (5.56%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), BN2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BN2's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).


Next Steps

Management

What is the CEO of Valuetronics Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Chong Tse (57yo)

13.2yrs

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 ...


Management Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: BN2's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

57yo

Average Age

Experienced Board: BN2's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellHK$125,35908 Aug 19
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares184,000
Max PriceHK$0.68

Ownership Breakdown


Management Team

  • Hazel Chia

    Company Secretary

    • Tenure: 4.3yrs
  • Shirley Lim

    Company Secretary

    • Tenure: 4.3yrs
  • Chong Tse (57yo)

    Chairman & MD

    • Tenure: 13.2yrs
  • Kok Chow (59yo)

    Founder & Executive Director

    • Tenure: 13.2yrs
  • Jian Yuan Huang

    Vice President of Operations

    • Tenure: 7.5yrs
  • Joseph Lui (38yo)

    Chief Financial Officer

    • Tenure: 2.3yrs

Board Members

  • Tiew Ong (66yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Siok Chin Tan (49yo)

    Independent Director

    • Tenure: 5.3yrs
  • Chong Tse (57yo)

    Chairman & MD

    • Tenure: 13.2yrs
  • Kok Chow (59yo)

    Founder & Executive Director

    • Tenure: 13.2yrs
  • Cheng Guan Loo (55yo)

    Independent Director

    • Tenure: 4.3yrs

Company Information

Valuetronics Holdings Limited's company bio, 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
  • Market Cap: S$278.401m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:42
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.