Valuetronics

Valuetronics: DBSV says mixed 1QFYMar15 results raises qns on growth as Consumer Electronics (CE) fell faster than expected, due to a key customer switching strategy to move to the mass market with lower pricing and larger volume. Industrial sales on the other hand, surged 36% y/y, but failed to support the decline from CE. The house notes that growth catalysts are visibile but momentum is hard to predict. Cuts FY15/16e earnings by 10-11% to account for lower CE contribution and flat margins. According DBSV lowers TP to $0.65 (from $0.72) , but retains its Buy rating