Valuetronics

Valuetronics: +6.5%. CO. reported 3Q12 earnings which exceeded expectations. Rev of HK$617.2m, +17.7% YoY increase but -1.6% QoQ. Net profit was flattish at HK$31.5m versus HK$31.6m in the preceding year but rose 9.5% QoQ. Excluding one-off items, estimate that net profit for 3QFY12 would instead have declined 13.8% YoY and increased 24.1% QoQ, but still higher than street expectations.

Grp experienced strong reve growth in its OEM and Licensing business during the qtr, but this was partially mitigated by a 15.7% YoY fall in rev from its ODM segment. Moving forward, mgt remains cautious on the uncertain macroeconomic landscape and rising cost pressures. OCBC have a BUY rating and $0.29 TP.