Brokers' take

Valuetronics | Buy

March 24 close: S$0.475

Target price: S$0.64

RHB Research Institute Singapore, Mar 24

WE brought Valuetronics on a full-day roadshow on March 23 to meet our institutional clients, with another planned on March 25. The feedback was generally positive and key concerns remain on whether the growth in the Industrial and Commercial Electronics (ICE) segment can exceed or make up for the slowdown from its Consumer Electronic (CE) segment, especially its LED business portion.

We expect ICE to grow at least 20 per cent in FY 2016. As its ICE segment yields much higher margins, we believe that it would cover up for any decline in its CE Segment and result in a better gross margin and net profit after tax for FY 2016, just like its…