3 Top Singapore Stocks for July: Valuetronics Holdings Limited
Valuetronics is an electronic manufacturing service (EMS) provider that designs and develops products for its customers.
The group operates a manufacturing facility in Guangdong province, China, and has a facility in Vinh Phuc province in Vietnam.
Valuetronics released its fiscal 2023 (FY2023) earnings recently for the period ending 31 March 2023.
Revenue dipped by 0.7% year on year to HK$2 billion but operating profit improved by 5.2% year on year to HK$132.9 million.
Net profit rose 8.3% year on year to HK$123 million.
The EMS player also generated a positive free cash flow of HK$163.5 million for FY2023, reversing the free cash outflow of HK$103.2 million a year ago.
A final and special dividend of HK$0.10 and HK$0.06 was declared, lifting the total FY2023 dividend to HK$0.20.
Shares of Valuetronics offer a trailing 12-month dividend yield of 6.4%.
The group expects to face challenges for FY2024 as customers have deferred orders to manage inventory levels while reductions in component costs and improvement in lead times did not materialise.
Despite the difficulties, Valuetronics reported that it had commenced shipments to two new customers and has also secured two additional customers.
These four customers should help the group to record a full-year revenue contribution for FY2024.
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