Valuetronics Holdings

[RachelProp]

Buying opportunity for investors as Valuetronics hovers near 'crisis valuations'

https://www.theedgesingapore.com/capital...valuations

[¯|_(ツ)_/¯]

Valuetronics FY Result as at 31 Mar 2021
Rev HK$2b (vs 2b)
GP  HK$386m (vs 362m)
NP  HK$187m (vs 178m)
Div HK16cents (vs 14)
https://links.sgx.com/FileOpen/VHL-Resul...eID=668362

Mr Ricky Tse Chong Hing (“ 谢 创 兴 ”), Chairman and Managing Director of Valuetronics commented: 
"With the loss of orders from customers switching their supply chain to other countries due to Sino-US trade tensions, compounded with the uncertainties resulting from the global components shortage and evolving COVID-19 pandemic, the Group’s financial results for FY2022 are expected to be significantly lower compared to FY2021. On the other hand, our Vietnam expansion is proceeding according to schedule during the year. We are targeting the new Vietnam campus to commence production by the end of FY2022. By then, we will be fully equipped to serve customers’ multi-site production strategy as a means to mitigate Sino-US trade tensions, and we will be seeking out new opportunities emerging with our extended geographic footprint.

Stay home and stay safe, everyone.

[DCF]

Valuetronics FY Result as at 31 Mar 2021
Rev HK$2b (vs 2b)
GP  HK$386m (vs 362m)
NP  HK$187m (vs 178m)
Div HK16cents (vs 14)
https://links.sgx.com/FileOpen/VHL-Resul...eID=668362

Mr Ricky Tse Chong Hing (“ 谢 创 兴 ”), Chairman and Managing Director of Valuetronics commented: 
"With the loss of orders from customers switching their supply chain to other countries due to Sino-US trade tensions, compounded with the uncertainties resulting from the global components shortage and evolving COVID-19 pandemic, the Group’s financial results for FY2022 are expected to be significantly lower compared to FY2021. On the other hand, our Vietnam expansion is proceeding according to schedule during the year. We are targeting the new Vietnam campus to commence production by the end of FY2022. By then, we will be fully equipped to serve customers’ multi-site production strategy as a means to mitigate Sino-US trade tensions, and we will be seeking out new opportunities emerging with our extended geographic footprint.

Stay home and stay safe, everyone.

Dividend increase a bit  Guidance for 2022 to be worst than 21

[weijian]

So in essence, the company is diversifying its contract manufacturing business into providing "AI-as a service". So, it will be the one providing the capital, while the minority partner SinnetCloud HK provides the operating expertise.

Valuetronics enters the AI industry with new JV partnership

VML and SinnetCloud HK have agreed to establish a joint venture to carry on the business of providing GPU (graphic processing unit) and AI (artificial intelligence) related value-added cloud services in Hong Kong Special Administrative Region

VML: VML shall procure the lease of the leased equipment to the Company on the terms and subject to the conditions set out in the Equipment Leasing Agreement.

SinnetCloud HK:
(a) SinnetCloud HK shall be responsible for assisting the JV Company in its day-to-day management and operations of its business.
(b) SinnetCloud HK shall be responsible for assisting the JV Company in its application and procurement of the requisite permits and licenses required to carry on its business;
© SinnetCloud HK shall use its best endeavours to assist the JV Company in securing certain anchor customers; and
(d) SinnetCloud HK agrees and acknowledges that its involvement in the JV Company is critical to the success of the JV Company and its business and undertakes to provide assistance and support to the JV Company to the best of its abilities.

https://links.sgx.com/FileOpen/VHL-Entry...eID=807444