Latest news with #Valuetronics
Yahoo
27-05-2025
- Business
- Yahoo
Is Now The Time To Put Valuetronics Holdings (SGX:BN2) On Your Watchlist?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Valuetronics Holdings (SGX:BN2). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Valuetronics Holdings with the means to add long-term value to shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Valuetronics Holdings managed to grow EPS by 5.8% per year, over three years. While that sort of growth rate isn't anything to write home about, it does show the business is growing. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. While Valuetronics Holdings may have maintained EBIT margins over the last year, revenue has fallen. Suffice it to say that is not a great sign of growth. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. View our latest analysis for Valuetronics Holdings The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Valuetronics Holdings' future EPS 100% free. It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions. It's nice to see that there have been no reports of any insiders selling shares in Valuetronics Holdings in the previous 12 months. With that in mind, it's heartening that Yuen Weai Liu, the company insider of the company, paid HK$45k for shares at around HK$0.60 each. Purchases like this can help the investors understand the views of the management team; in which case they see some potential in Valuetronics Holdings. Along with the insider buying, another encouraging sign for Valuetronics Holdings is that insiders, as a group, have a considerable shareholding. Given insiders own a significant chunk of shares, currently valued at HK$86m, they have plenty of motivation to push the business to succeed. That holding amounts to 31% of the stock on issue, thus making insiders influential owners of the business and aligned with the interests of shareholders. One positive for Valuetronics Holdings is that it is growing EPS. That's nice to see. Better yet, insiders are significant shareholders, and have been buying more shares. That makes the company a prime candidate for your watchlist - and arguably a research priority. Before you take the next step you should know about the 2 warning signs for Valuetronics Holdings (1 is significant!) that we have uncovered. Keen growth investors love to see insider activity. Thankfully, Valuetronics Holdings isn't the only one. You can see a a curated list of Singaporean companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
12-02-2025
- Business
- Yahoo
4 Singapore Stocks I Plan to Buy if I Had S$30,000 to Spare
As we welcome February and the Year of the Snake, many of you may have received bonuses after a year of hard work in 2024. Armed with a stash of cash, you can either sock away this money or decide to invest it in promising businesses with good growth potential. I have a little mental exercise that I do when scouting for interesting investment ideas. By imagining that I have S$30,000, I then decide which stocks I want to put my money in and justify these decisions with properly-researched reasons. With another such exercise just concluded, here are four Singapore stocks that I could put my money in if I had a tidy sum of money to spare. LHN is a real estate management services group with an expertise in space optimisation to create value for both landlords and tenants. The group has four business segments in space optimisation, property development, facilities management, and energy, and operates in Singapore, Indonesia, Myanmar, Cambodia, and Hong Kong. LHN reported a strong set of earnings for its fiscal 2024 (FY2024) ending 30 September 2024. Revenue climbed 29.2% year on year to S$121 million while gross profit stood at S$62.2 million, up 20% year on year. Net profit from continuing operations soared 155.1% year on year to S$47.3 million. The group saw a 37.7% year-on-year revenue increase for its space optimisation business while its facilities management division posted a 13.4% year-on-year increase in revenue. The business also generated a positive free cash flow of S$23.5 million for FY2024. A final dividend of S$0.01 was declared along with a special dividend of S$0.01, similar to what was paid out in the previous fiscal year. Together with an interim dividend of S$0.01, the total dividend for FY2024 amounted to S$0.03. For FY2025, the group plans to expand its Coliwoo offerings with new developments that should add over 250 keys to its current operations. For facilities management, LHN will expand its car park business by securing more vehicle parking management contracts in Singapore. Valuetronics is an integrated electronics manufacturing services provider with two business segments – consumer electronics (CE) and industrial and commercial electronics (ICE). The group owns two manufacturing facilities in China and Vietnam. The manufacturing company reported a mixed set of earnings for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024. Total revenue fell by 3.3% year on year to HK$862.1 million. The fall was caused by weakness in the CE division which saw revenue plunge by 17.6% year on year to HK$193.4 million. This decline was partially offset by a 1.8% year-on-year increase in revenue for the ICE segment to HK$668.7 million. Valuetronics saw its gross margin improve slightly to 16.8% for 1H FY2025, compared with 15.6% a year ago. Net profit climbed 10.2% year on year to HK$90.5 million. The group generated a positive free cash flow of HK$52.7 million for the half year. Valuetronics had HK$1.2 billion of cash on its balance sheet with zero debt. An interim dividend of HK$0.04 and special dividend of HK$0.04 were declared, bringing the total dividend for 1H FY2025 to HK$0.08, unchanged from last year. Valuetronics will continue with its strategy of allocating more resources towards newly-acquired customers with higher growth potential and better margins. UMS Integration provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and their related products. For the first nine months of 2024 (9M 2024), UMS Integration reported a downbeat set of earnings as the semiconductor downturn impacted its revenue and profits. Revenue fell by 23% year on year to S$174.9 million while net profit plunged by a third year on year to S$29.5 million. Despite the lower profit, UMS Integration still generated a positive free cash flow of S$7.4 million for 9M 2024. An interim dividend of S$0.01 was paid out, a slight decline from the prior year's S$0.012. CEO Andy Luong remains optimistic about the future as the semiconductor outlook appears promising. US fab capacity is projected to triple by 2032, and the Semiconductor Industry Association forecasts significant improvements in the resilience of the supply chains in both the US and globally in the coming years. UMS Integration's new key customer is asking the group to ramp up production in a sign that business conditions are improving. Grand Venture Technology, or GVT, is a solutions and services provider for the manufacture of complex precision machining, sheet metal components, and mechatronic modules. The group reported an upbeat set of earnings for 9M 2024. Revenue jumped 35.8% year on year to S$111.9 million while gross profit leapt nearly 47% year on year to S$29.5 million. Net profit climbed 33.5% year on year to S$6.3 million. Chipmakers are focusing more on high bandwidth memory (HBM), a key enabler for AI workloads and data-intensive applications. GVT expects to capitalise on this growing demand for HBM and is in active engagement with blue-chip customers across the semiconductor value chain. Just last month, GVT announced a key win from a global leader in fabrication equipment and services for TSV (Through-Silicon VIA). Such front-end wins should drive more opportunities for the group to enjoy multi-year revenue growth starting from 2025. Global trade tensions and rising tariffs are causing market volatility, but smart investors know how to stay ahead. Join our free webinar, 'Your Secret Weapon To Fight The Tariff War,' to learn how you can protect your portfolio and generate steady income, even in uncertain times. Click here to sign up for free now! By the time your child grows up, inflation will have gobbled up their savings. If you not only want to protect their money but also grow it, there are 3 SGX stocks you can consider buying. One has already proven to give a 55.8% dividend pay rise. Get all the details in our latest special FREE report. Just click here. Disclosure: Royston Yang does not own shares in any of the companies mentioned. The post 4 Singapore Stocks I Plan to Buy if I Had S$30,000 to Spare appeared first on The Smart Investor.
