Valuetronics Holdings

[Bibi]

This company been issuing quite an amount of share options over the years.

[Stockerman]

Is this company worth buying for its high dividend yield?

Why did the Chairman/MD sell down from 22% to 18% on 7 March, when the full year results are good?

Any views pls?

[felixleong]

anyone knows when the results should be out?
should be this month of may right?

[FatBoi]

anyone knows when the results should be out?
should be this month of may right?

Based on last year (25 May), the full year results should be released in the final week of May.

[felixleong]

Noted, thanks man~

[smallcaps]

Is this company worth buying for its high dividend yield?

Why did the Chairman/MD sell down from 22% to 18% on 7 March, when the full year results are good?

Any views pls?

http://www.valuebuddies.com/thread-2238-...l#pid30589

[felixleong]

I stumbled upon this company like 3 years back, but didn't want to invest in it because it had a loss making licensing business.

they have terminated their licensing business, as a result the recent results were hit very badly.

any of u guys know if the licensing business has already been fully written off?

I'm waiting for the full year results to get a better picture of it after "cleansing"

their paid like 14 hk cents dividends in 2011 and 17 hk cents in 2012 , I think dividends for 2013 which will be paid in july will be much lesser, any views on that?

current stock price is 21 sg cents

[NTL]

I stumbled upon this company like 3 years back, but didn't want to invest in it because it had a loss making licensing business.

they have terminated their licensing business, as a result the recent results were hit very badly.

any of u guys know if the licensing business has already been fully written off?

I'm waiting for the full year results to get a better picture of it after "cleansing"

their paid like 14 hk cents dividends in 2011 and 17 hk cents in 2012 , I think dividends for 2013 which will be paid in july will be much lesser, any views on that?

current stock price is 21 sg cents

These are extracts from their results.

Q1FY13:
As a result of the termination, the Licensing business is expected to incur termination expenditure of about HK$25 million, which includes termination cost and royalties payable to the licensors as well as severance payments for our employees. In addition, the provision for impairment on the net assets is estimated at HK$3 million. Altogether, the total termination expenditure is estimated at HK$28 million and is expected to be recorded in the next quarter. Accordingly, the Group’s Q2 FY2013 results would be significantly impacted.

Q2FY13:
The loss from discontinued operations in Q2 FY2013 increased by 648.0% to HK$31.2 million from HK$4.2 million in Q2 FY2012, resulting from a termination expenditure of HK$25.0 million and provision for impairment loss on property, plant and equipment of HK$3.0 million. No income tax expense was incurred during the period as the Licensing business was loss making.

Q3FY13:
Our termination of the Licensing business in August 2012 and its attendant provision for termination expenditure and impairment loss for property, plant and equipment of HK$28.0 million was recorded in Q2 FY2013. Upon cessation of the Licensing business, savings are estimated to be approximately HK$12.0 million per annum through reduced staff and rental expenses.

Looks like all are fully written-off.

Based on past 3yrs dividend payout of around 40% of EPS, yes, very likely the dividend will drop. Expected EPS for Q4 will be around 5-7c, giving a total EPS for whole year around 20c. That will mean a dividend of around 8 hk c, which is around 1.2 sg c? Still got 5.7%.

[felixleong]

thanks for the info bro, really very helpful.
I think its a good thing that they write this off and move on

Base on my estimates I'm expecting a dividend payout of about 7 hk cents

But i think best is to wait for Q4 + full year results are out to see the clear picture

I would be worried if management decides to pay anything lesser than 7 hk cents...
if they pay like 0 to 5 hk cents, the stock price will probably tank as many investors bought this for its high yield

at forecasted FY13, its PE 7 and yield 5%, net cash position, does valuetronic looks cheap?

not vested

cheers

[NTL]

thanks for the info bro, really very helpful.
I think its a good thing that they write this off and move on

Base on my estimates I'm expecting a dividend payout of about 7 hk cents

But i think best is to wait for Q4 + full year results are out to see the clear picture

I would be worried if management decides to pay anything lesser than 7 hk cents...
if they pay like 0 to 5 hk cents, the stock price will probably tank as many investors bought this for its high yield

at forecasted FY13, its PE 7 and yield 5%, net cash position, does valuetronic looks cheap?

not vested

cheers

That will put it at a higher end based on historical numbers. So definitely not cheap "relatively".