Valuetronics Holdings

[ValueMaster]

I understand that management has a lot of options that are priced 20cents or less, any views on that?

[newborn1000]

it is taking an awfully long time to release the quarterly results......just itching to look at it

[greengiraffe]

Lim & Tan

Valuetronics (37.5 cents, unchanged) full year to Mar’14 sales
increased by 10.1% to
HK$2,433.3 million underpinned by growth from their consumer
electronics customers and industrial and commercial electronics
customers.
Gross profi t increased by 20.9% to HK$326.8 million and gross profi t
margin improved to 13.4% from 12.2% previously. This refl ects the
change in product mix during the year. Forex gain rose by 13.0% to
HK$12.6 million. Positive operating leverage saw net profi t rise 88%
to HK$148mln much faster than sales growth of 10%.
Looking ahead, the gradually improving global economy, the
company’s expanding product portfolio and on-going operating
effi ciency improvements have provided the foundation for continuous
growth.
Management will continue expanding their customer base, even
as they face the recurrent headwind of rising labour cost in China.
Management will make further efforts to identify cost savings and new
areas for effi ciency improvements. This includes continuing to invest
in automation and lean manufacturing initiatives to improve both
labour effi ciency and overall productivity. Management will also focus
on cost improvements on value engineering, supplier productivity and
quality enhancement.
In the coming year, management will continue to play an active role in
supporting customers’
product innovation and responding to their evolving needs.
Financial position remains strong with net cash position of HK$478mln,
translating to 57% of its current share price.
To reward shareholders, management doubled fi nal dividend to 16
HK cents a share and another 4 HK cents special dividend. This
translates to a payout ratio of 50%. Management enunciated that
they will pay between 30-50% of their earnings going forward.
At its last traded price of 37.5 cents, dividend yield is an attractive
8.7%. Trailing PE is 6x while price to book is 1.1x. BUY

[ValueMaster]

sold my shares today at 0.39 to lock in a 30% profit! Yes!!!

thanks all valuebuddies for the insights into this value counter, this forum is really a gold mine as I made good profits on FCL(20%) and valuetronics (30%)

Hope things continue to go well for you guys, cheers ^_^

[InvestArk]

The cat is finally out of the bag, the exercising of options are actually for the director's retirement.

[ValueMaster]

I realize management has a lot of cheap stock options, the stock will tank once the insiders start to take profit, good luck

[newborn1000]

I am not too concern about management cashing out.........lots of realities around, if you work in accounts/finance ,management cash out all the time......

And now, time to tear the financial results apart =D

[InvestArk]

I realize management has a lot of cheap stock options, the stock will tank once the insiders start to take profit, good luck

Then may i ask why did you buy in the first place ?

[psslo]

Cursory review of the FY14 results:

Using current price of 39c
* CF of 13.3c or P/CF of 3
* Dividend of 3.2c, 8.2% yield (50% payout)
* Implement dividend policy of 30%-50% going fwd
* Net cash per share of 21c with no debt
* NAV of 32c, P/B = 1.2
* PE = 6

Looks like it's a keeper for me. Bought last year at 21.5c, so my dividend yield is a fantastic 15%. Current P/B slightly high for me, but may accumulate more if it goes below 1 again.

[ValueMaster]

with such high prices, good opportunity for management to sell their shares again