UOB Kay Hian Raises Target Price For Valuetronics To 83 Cents

Edge
03 Jun

UOB Kay Hian analysts have kept their "buy" call on Valuetronicsfollowing a record FY2025. While there are broader trade uncertainties, the company is "cautiously optimistic" about its prospects thanks to new customers, according to analysts John Cheong and Heidi Mo, who have raised their target price from 78 cents to 83 cents.

For its FY2025, Valuetronics reported revenue of HK$1.79 billion, up 3.5% y-o-y. However, earnings grew at a faster pace of 6.8% y-o-y to HK$170.4 million thanks to a more favourable sales mix, which lifted gross margins to a record of 17%.

To cap it off, the company plans to pay a final dividend of 11 HK cents and a special dividend of 8 HK cents.

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