Valuetronics

Valuetronics: Management answered questions in PhilipCapital’s Corporate Day. On above average margins, management attributed it to a mixture of low consumer electronics segment margins and industrial and commercial electronics’ almost double margins. On comparing with peers like Venture and Flextronics, Valuetronics highlighted competition isn’t head to head as the former focuses on scale, but Valuetronics prefers to work with smaller companies where they can add value by utilizing the R&D team. On how much cash is idle, management highlighted 58% of its HK$477.9m is potentially distributable. PhilipCapital reiterates its top pick on Valuetronics with TP of $0.605