Valuetronics Holdings

[sgpunter]

AGM is held this morning. Very unfortunately, I'm at work and unable to attend.

Hoping for some kind soul who attended the AGM to provide some updates on what went on and Management's Outlook...

[kelvesy]

Yeah, it would be good if someone would be able to shed some light of today's AGM...

Due to work commitments, I wasn't there as well.

[kopihothot]

a total of 184,514,510 shares were represented, which is more than 50% no. of shares........meaning the mgmt themselves were included in the votes? Is this how the voting works?

Like that all resolution sure to be passed......their share-performance scheme is, imho, a un-needed burden on shareholders to benefit only the top 2 mgmt, who are already being paid very handsomely.......I'm pretty sure the 11,176,000 against-votes would represent quite a few minor shareholders, assuming each holding xxx lots. Surely that resolution has a high chance of failing if polled by hands?

[smallcaps]

Some party has been buying Valuetronics at 1 lot per one to two minutes interval.

Anyone aware if there is a trading tool that helps to do that automatically, help to spread out the trades?

[felixleong]

yeah its algro trading, 1 lot 1 lot is to see who the counter party

[smallcaps]

Thanks, so I guess that it's not available to retail investors?

[felixleong]

Yeah I guess not available to retail investors

but sometimes if you have a big order to do
say you wanna buy 1,000 lots of valuetronic through out the day (better to slowly buy then one shot market order which will cause the price to jump up a few bids)

you can place a CD (careful discretion) order with your broker, he will slowly make purchases hourly till the order is filled by end of the day ^^

[smallcaps]

Thanks! That's interesting to know. Didn't know even got a term for it.

[felixleong]

Valuetronics Holdings: Discontinuing coverage

Summary: Valuetronics Holdings Limited (VHL) will begin FY14 on a fresh page, as it will no longer incur losses on its Licensing business following its decision to terminate operations in 2QFY13. Any recovery in VHL’s earnings will likely translate into higher dividends for its shareholders, in our view, as VHL had a relatively stable dividend payout ratio of 37-42% from FY10-13. This is also supported by VHL’s strong net cash position. Looking ahead, we believe that VHL will focus its attention largely on its LED lighting OEM business, given the robust industry growth prospects and its largest customer’s market leadership position in this field. However, given the continued lack of trading liquidity in VHL’s stock and a reallocation of resources, we are CEASING COVERAGEon the stock. Our last rating was a ‘Hold’ with a fair value estimate of S$0.195.

[felixleong]

OCBC research

Losses of Licensing division a thing of the past
Valuetronics Holdings Limited (VHL) had to endure a difficult FY13, as
its decision to cease its Licensing segment resulted in one-off
termination expenses and impairment losses on assets. This culminated
in segment losses amounting to HK$39.8m in FY13, wider than the
HK$30.0m loss reported in FY12, thus causing a drag on overall group
profitability. Looking ahead, VHL will be able to start on a fresh page,
as it will no longer incur further operating expenses from its Licensing
business. Any recovery in VHL’s earnings will likely translate into higher
dividends for its shareholders, in our view, as VHL had a relatively
stable dividend payout ratio of 37-42% from FY10-13. In addition, VHL
has a strong net cash balance of HK$221.6m as at 31 Mar 2013 (no
debt), which forms 52% of its current market cap.

Glowing growth potential of LED market
We believe that VHL will focus its attention largely on its LED lighting
OEM business, given the robust industry growth prospects. McKinsey
has forecasted the LED general lighting market to grow at a 45% and
15% CAGR from 2011-2016 and from 2016-2020, respectively. VHL’s
largest customer holds a market leadership position in this field, and
also recorded a solid 28% YoY growth in its LED-based sales for its
2Q13 results, driven by ongoing urbanisation and rising demand for
energy efficient lighting solutions. LED lighting currently contributes
25% of this customer’s lighting portfolio, and this is expected to
increase to ~45% by 2015, as highlighted in its recent results
conference call. We expect VHL to be a beneficiary of this trend in the
medium-to-long-term. In the near-term, however, while penetration
rates of LED lighting are increasing, demand in Western Europe has
been dampened by the tepid economic conditions.
Ceasing coverage

Given the continued lack of trading liquidity in VHL’s stock and a
reallocation of resources, we are CEASING COVERAGE on the stock.
Our last rating was a ‘Hold’ with a fair value estimate of S$0.195.