Valuetronics

Valuetronics: UOB Kay Hian note that results ahead of expectations. Valuetronics reported FY12 net profit of HK$130m, up 7.5% yoy. Excluding the impact of an increase in net foreign exchange gains of HK$4.5m and the write-back of a provision for impairment loss of HK$3.7m related to the flash flood incident in 2008, net profit was HK$121.8m, slightly above house forecast of HK$117.5m. FY12 revenue increased 20.7% yoy to HK$2,378.6. This was due to: 1) OEM revenue increasing by 24.3% yoy to HK$2,010.3m largely due to the growth in the LED lighting segment, 2) ) ODM revenue decreasing by 13.0% yoy to HK$278.0m due to a slowdown in demand from major ODM customers, and 3) ) licensing business revenue growing 170.3% yoy to HK$90.3m due to a ramp-up in marketing efforts in the US. Grp announced a 16.0 HK cents (2.6 S cents) final dividend and 1.0 HK cents (0.2 S cents) special dividend, implying dividend yield of 11.0%. House maintains Buy with $0.31 TP.