Valuetronics

Valuetronics: Strong set of 3QFY14 results. Net profit surged 45% to HK$35.5m, as revenue increased 14% to HK$576.8m, driven by growth in both the consumer electronics (CE) and industrial & commercial electronics (ICE) segments. Gross margin rose from 12.7% to 13.6% thanks to positive changes in the product sales mix. Mgt expects the group to achieve strong growth in FYMar14 profitability. At $0.27 last close, the stock trades at 4.1x annualized 9MFY14 P/E, 0.9x P/B. Mgt says the group is seeing growing orders from both its ICE and CE customers. Overall customer outlook is showing signs of improvement as customers seek to capture more market opportunities to ride the global recovery. Valuetronics’ push to broaden its ICE customer base is also starting to pay off, as it clinches more ICE product programs.