Valuetronics Holdings

[Ray168]

Below is the link to webinar presentation on Valuetronic.... from 0848 minutes onwards.

http://www.youtube.com/watch?v=rFc8XqSyq...r_embedded

Not vested yet.

Coincidentally, Phillip did a webinar presentation on Valuetronics today. Some key info apart from what's on their annual reports:

+ Philips LED light bulb accounts for 40% of total revenue
+ Other Philips non-LED light bulb products (i.e. electronic toothbrush, shavers, etc) account for another 20% to 22% of total revenue [So, Philips actually attribute to more than 50% of Valuetronics' revenue - so if Philips don't do well, expect the same for Valuetronics though the converse may not be true.]
+ They didn't give the GPM for Philips products but I expect GPM to be lesser than overall GPM. Consumer electronics, about 75% of revenue, is more of a high volume but low margin product mix.
+ They have around 4,000 workers which means wage cost will be a big impact for them. They are aiming to mitigate this by promoting productivity efficiency and adopting automated machines [didn't ask how much of the latter will reduce their work force]
+ Overall, they pitch that they had been the better player given that the entire EMS industry faces the concern of deteriorating margins. That being said, an investor can just avoid the entire industry.