Valuetronics Holdings

So we have the results at last: EPS -40% , dividend halved to 0.08 HKD and current yield down to a miserable 6%. Bleah

omg looks bad, somemore today market so red
GG to valuetronic shareholders

(23-05-2013, 02:23 PM)Gaudente Wrote: So we have the results at last: EPS -40% , dividend halved to 0.08 HKD and current yield down to a miserable 6%. Bleah

Good enough for this year. Not forgetting they write down HK$28M.

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(23-05-2013, 02:25 PM)felixleong Wrote: omg looks bad, somemore today market so red
GG to valuetronic shareholders

It's the only GREEN on my watchlist!

ya lor how come green ah?
like that also above expectaion ah?
in terms of fundamentals I strongly believe the worst is over for valuatronics
already tanked all the damage, 2013/14 is almost sure to be better than before

(23-05-2013, 03:42 PM)felixleong Wrote: ya lor how come green ah?
like that also above expectaion ah?
in terms of fundamentals I strongly believe the worst is over for valuatronics
already tanked all the damage, 2013/14 is almost sure to be better than before

Let's read the forward statement in the report:

"In the second half of the year, the Group experienced slowdown in orders from some of its Consumer Electronics customers. However a stabilizing, albeit weak economic outlook in US and Europe may moderate any further downside. With price reduction requested by some of our major customers, prevailing market uncertainties in demand and continuing cost escalations in China, operating conditions will remain challenging.

Our termination of the Licensing business in August 2012 and its attendant termination expenditure and impairment loss for property, plant and equipment of HK$26.3 million was recorded during the year. All relevant costs to fulfil our obligations after termination of the Licensing business have been accounted for as at year end. We do not expect any more expenses will be incurred in FY2014. Upon cessation of the Licensing business, savings are estimated to be approximately HK$12.0 million per annum through reduced staff and rental expenses. Such savings have been gradually reflected in our accounts when we closed our Licensing office in USA in January 2013.

In Consumer Electronics segment, we moved away from one of the labour intensive customer, which engaged in kitchen counter top appliances, so as to put our resources into new customers from the Industrial and Commercial segment. During the second half of the year, the orders received from one of our key customers slowed down and led to overall decrease in revenue. However, such customer is showing sign of recovery after year end.

It was a stable year for Industrial and Commercial Electronics segment. One of our key customers plans to close its factory and move the rest of their high mix low volume production to our facilities. In addition, a new customer in this segment would transfer their manufacturing to our facilities by closing their own PRC factory. We expect such transfers would further enrich our customer base and support sustainable growth in this segment.

The Group has actively drove its business development activities by means of tapping into new sales representatives covering different regions in the US, participating in trade shows to improve our publicity and identify new opportunities. We expect such effort will crystallize in expansion of customer portfolio. As a result, this may widen our customer and product portfolios in Industrial and Commercial Electronics. The Group will continue to remain vigilant in monitoring market developments and will continue with our efforts in improving our fundamentals, including design and development capabilities, production efficiencies and inventory management.

Notwithstanding the challenging operating environment and uncertainties in the global economy, the directors expect the Group to remain profitable"

Look like there are alot of positives in it. Let's see if it is true in 12months time.

I have learnt not to trust the management of valuetronics too much
Remember they were so sure and bullish about their licensing business?
they said it would probably break even in 2013 or 2014, and the stock price bull along to 24-26c
they then sold their holdings at the peak and then announced that they were gonna take a hit on exiting the same business that they were previously so positive about
tigers in sheep clothes, I think value investors considering to purchase this stock would need more margin of safety

(24-05-2013, 04:04 PM)felixleong Wrote: I have learnt not to trust the management of valuetronics too much
Remember they were so sure and bullish about their licensing business?
they said it would probably break even in 2013 or 2014, and the stock price bull along to 24-26c
they then sold their holdings at the peak and then announced that they were gonna take a hit on exiting the same business that they were previously so positive about
tigers in sheep clothes, I think value investors considering to purchase this stock would need more margin of safety

So likely they will try pull the share price up to 24-26c again and sell more? Let's see if they are able to do it again. Keeping watch.

How much does he draw each year over the last few years?

   

If take $1.5mil, his pay is 0.4% of total revenue for that FY.

sounds very overpaid CEO... normally I prefer CEOs with a significant stake. 10%-50% would align interest with shareholders more.