• After five years of revenue decline, we expect a turnaround for Valuetronics after securing four new customers for FY24e/FY25e.
• The new factory in Vietnam will allow customers to de-risk from a China supply chain faced with high US tariffs and escalating geopolitical tension.
• Valuations are attractive at 1.1x EV/EBITDA with a dividend yield of 5%. Valuetronics carries a net cash of HK$1bn (S$177mn) on its balance sheet, or 80% of the market cap. We initiate coverage with a BUY recommendation and target prices of S$0.61. We peg our target price to industry valuations of 11x PE 1-year forward earnings. Valuetronics has an existing share buy-back plan to purchase an estimated 60mn shares (or S$32m) at the current price.

Binhai Investment Company Limited (Binhai) is principally engaged in the sales of piped natural gas, construction and gas pipeline installation service and gas passing through service. The natural gas business of Binhai Investment and its subsidiaries is distributed in seven provinces and two cities across the country, with a total of 40 gas project companies. At present, the largest shareholder of Binhai Investment is Tianjin TEDA Investment Holding Company, holding 40.00% of Binhai’s shares, and the second largest shareholder is...
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Report type: Weekly Strategy While there is a lull in the overall market, there are still many investment opportunities available. Is it a "summer lull" in the market? The trading value of the Tokyo Stock Exchange, which had exceeded 3 trillion yen for 15 consecutive business days until the 17th, has remained in the 2 trillion yen range since the 18th. The Nikkei average tested around 31,300 yen on the 17th and 18th and was resilient, leading to a rebound from...
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