Its ICE (Industrial and Commercial Electronics) revenue, at 60% of its FY19E total, is stickier, given greater value-add from design involvement; qualification processes and lower volumes than its CE (Commercial Electronics) segment.
SINGAPORE (Mar 21): Maybank says Valuetronics’ stock has already priced in the drop in PCBA (PCB assembly) sales if customers decide to switch suppliers due to the China-US trade war.
Valuetronics’ PCBA business is the next most vulnerable after smart-lighting as entry barriers are low. Its Dutch MNC customer also has strong means to tweak its supply chain.
