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Hong Kong's Valuetronics HY revenue rises on ICE segment growth

By Reuters News


Overview

  • Hong Kong EMS provider's half-year revenue grew 7.3% yr/yr to HK$897.3 mln

  • Net profit for the half-year rose 2.4% yr/yr to HK$89.8 mln

  • Profit from continuing operations declined 2.2% due to higher income tax expense


Outlook

  • Valuetronics expects ICE segment to deliver yoy revenue growth in FY2027

  • Company expects CE segment revenue to decline yoy in FY2027

  • Company expects EMS industry environment to remain challenging amid geopolitical and supply-chain uncertainties


Result Drivers

  • ICE SEGMENT GROWTH - Revenue growth driven by higher contributions from network access solutions and captioned-phone customers in ICE segment

  • CE SEGMENT DECLINE - Revenue from CE segment fell sharply due to phase-out of low-margin traditional consumer lifestyle products

  • HIGHER COMPONENT COSTS - Gross margin declined due to higher component costs from supply chain pressures and strong demand for AI infrastructure components


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Net Income

HK$89.80 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electronic equipment & parts peer group is "buy."

  • Wall Street's median 12-month price target for Valuetronics Holdings Ltd is S$1.59, about 73.2% above its November 10 closing price of S$0.92

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Nov 10 - Chinese chipmakers Denglin, Xinde end mixed in Hong Kong debuts

  • Nov 10 - China's Hesai Q3 revenue rises 34% as lidar shipments grow

  • Nov 9 - Sanmina Q4 revenue, adjusted EPS beat analyst estimates on core business growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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