Brokers' take

Valuetronics | Buy Target price: S$0.92 Sept 25 close: S$0.70 RHB Research Institute, Sept 25

We maintain "buy" and discounted cash flow-based target price of S$0.92 with a 33 per cent upside. Management clarified that the flooding at its plant in China had caused minimal impact to operations. It has since resumed production of its consumer electronics products. It also guided that less than 10 per cent of topline would likely be impacted by the recent US$200 billion additional tariffs.

The recent correction has placed Valuetronics at an attractive valuation of just 7.9 times fiscal 2019 price-to-earnings, accompanied by a 6.3 per cent yield. Management would be implementing more overtime shifts to catch up on production.