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Here’s How Valuetronics Holdings Limited Makes Its Money

Valuetronics Holdings Limited (SGX: BN2) is an integrated electronic manufacturing service provider headquartered in Hong Kong. It offers a combination of design, engineering, manufacturing, and supply chain support services for electronic and electro-mechanical products.

In this article, let’s look at how the company makes its money. Here, I will look at this aspect from two perspectives — by segment and by region.

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By segment

Source: Valuetronics 2018 Annual Report

The first aspect that we will look at is Valuetronics’ revenue breakdown by segment.

From the above, we can see that Valuetronics breaks down its revenue into two segments — consumer electronics, and industrial and commercial electronics. Examples of products supplied by the company are smart lighting products, printers, temperature sensing devices, communication products, automotive products and medical equipment.

The bigger of the two segments — industrial and commercial electronics — accounted for 51% and 65% of Valuetronics’ 2018 revenue and profit respectively. The rest are from the consumer electronics segment.

By region

Source: Valuetronics 2018 Annual Report

The next aspect that we will look at is Valuetronics’s revenue breakdown by region.

From the above, we can see that Valuetronics’s 2018 revenue was diversified in major regions of the world. The top four countries are United States, China, Poland and Hong Kong, which accounted for 42%, 31%, 7% and 4%, respectively, of the company’s 2018 revenue.

One thing to note is that while selling globally, Valuetronics produced most of its products in China as the bulk of its non-current assets are invested in the country.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.