Valuetronics

Valuetronics: AMFrasers initiates on Valuetronics with a HIGH CONVICTION BUY , with DCF based TP of $0.69. Valuetronics is an integrated electronics manufacturing service provider based in HK , with manufacturing facilities in Guangdong China. Trading a 5.8x FYMar15e P/E, or 2.7x FYMar15e ex-cash P/E, with an expected earnings growth rate of 10% in the coming years, valuations are too compelling to ignore. Valuetronics is virtually debt free, with net cash position rising from HK182m in FY08 to HK$478m in FY14. Net cash is now about half of the current total mkt cap. Stock is up 5% to $0.42 today