Thursday, July 23, 2020

EMS business - Valuetronics and Frencken (Short post)

A short consolidation of my thoughts.

One of the Post Covid-19 theme that I had in my mind is China-Plus. The redirecting of supply chains to diversify away from China. Valuetronics come to mind, after Rolf mentioned it in his blog. I decided to look deeper and these are more thoughts. (I no longer do excel or charts, you can read those by downloading the AR)

1) Impressive balance sheet and is in net cash position

2) Vietnam diversification is progressing fine, if you read their reports, it went from one customer request, to expansion by leasing a nearby site to meet demands, to having mutiple customers transferring their operations from China to Vietnam. 

However, when I compared this with Frencken, which has more "global" supply chains, it is obvious that Frencken has more "foresight" or "dumb luck". Frencken earnings are hardly affected as the semiconductor and medical segments are able to expand to offset other weaknesses. 

Valuetronics has better margins than Frencken, but what is worrying is Valuetronics has already lost some US customers (i.e. automobile sector) who has bring their supply chain back to US, and a smart lighting customer. Hence it is difficult to project earning recovery post Covid. 

The Vietnam venture seem more like saving existing customers' contracts than a value-adding proposition that might open up new markets. Valuetronics also has its bulk of its exports going to US as compared to Frencken's. 

With Covid-19, there are plenty of talk about resilence of supply chains as compared to just effeciency of supply chains, especially essential goods. My understanding is medical products/ equipements as well as agriculural food supplies. If I read correctly, Venture and Frencken has customers in the lifescience and medical sector but Valuetronics has none.

If you look at the shares price of the 2 companies, market has given thumbs up to frencken but lukewarm reactions to Valuetronics. For someone who invest in turnaround stories or cyclical plays, and I more interested in Valuetronics and would like to see how market might has misread it's prospects. However I could not find anything yet. 

7 comments:

  1. Can try spell and grammar check your writing?

    ReplyDelete
  2. Natural herbs have cured so many illness that drugs and injection can’t cure. I've seen the great importance of natural herbs and the wonderful work they have done in people's lives. i read people's testimonies online on how they were cured of HERPES, HIV, diabetics etc by Dr Edes herbal medicine, so i decided to contact the doctor because i know nature has the power to heal anything. I was diagnosed with Herpes for the past 3 years but Dr Edes cured me with his herbs and i referred my aunt and her husband to him immediately because they were both suffering from Herpes but to God be the glory, they were cured too .I know is hard to believe but am a living testimony. There is no harm trying herbs, Thanks. Write him on WhatsApp on +2348151937428. @dr_edes_remedies deals with
    (1)Alzheimer virus
    (2)Cancer
    (3)HIV
    (4)Herpes
    (5)Genital warts
    (6)ALS
    (7)Virginal infection
    (8)HPV
    (9)Hepatitis
    (10)Asthma
    Email him on dredeshome@gmail.com
    https://dredesherbalhome.weebly.com

    ReplyDelete
  3. I want to share my happiness to the world on how i was cured from (HERPES VIRUS) by Dr Oseremen herbal , i visited different hospital but they gave me list of drugs like Famvir, Zovirax, and Valtrex which is very expensive to treat the symptoms, but i did not have that kind of money to buy the drugs.the one i used before did not cured me. on one faithful day, a friend of my in united kingdom told me about Dr Oseremen herbal, he told me that,it is the herbal treatment that cure is husband from hepatitis B and she told me that he have cure so many people from herpes virus with is herb medicine,then she told me to contact him that he we cure me with is herb . when i contacted Dr Oseremen, he gave me hope and say that i we be cure once i get his herbal, he send the Herbal medicine to me and i take it for two weeks and it seriously worked for me, i went to the hospital to check, my HERPES result came out negative. I am so happy as i am sharing this testimony. My advice to you all who thinks that there is no cure for herpes that is Not true, just contact him and get cure from Dr Oseremen healing herbs, he also have the herb to cure any kind of hepatitis B,C A. AND DIFFERENT KIND OF SICKNESS Remember delay in treatment leads to death.. contact Dr Oseremen on is email at (Dr.Oseremenvadi@gmail.com) or whatsapp him on is Number :+2349056394313 and he we cure you with is HEALING HERB MEDICINE , thanks to Dr  Oseremen for cure me is healing herbs medicine

    ReplyDelete
  4. BITCOIN, BINARY OPTION: Please everyone should be careful and stop being a victim by all these brokers and account managers, they scammed me over $ 140,000 of my investment capital, they kept on requesting for extra funds before a withdrawal request can be accepted and processed, in the end, I lost all my money. All efforts to reach out to their customer support desk had declined, I found it very hard to move on. God so kind I followed a broadcast that teaches on how scammed victims can recover their fund, I contacted the email provided for consultation, I got feedback after some hours and I was asked to provide all legal details concerning my investment, I did exactly what they instructed me to do without delay, to my greatest surprise I was able to recover my money back including my profit which my capital generated. I said I will not hold this to myself but share it to the public so that all scammed victims can get their funds back,  Notice: If you are looking for a professional hacker to provide hacking solutions on Recovering Scammed funds, increase your Credit score and top up your Credit Card to any amount,  Bitcoin Lost funds recovery, Social media hacks  Bitcoin mining, DMV database and a lot more, search no further.  hire them now by 
     Email: wizardcharles1@gmail.com

    WhatsApp: +1 (385) 273 0329

    visit their website to read more about them:  https://wizardcharlesgrouphackers.com/.n/

    ReplyDelete
  5. CHIEF DR LUCKY HERBAL THERAPY 
    Thank you very much for curing my Human Papillomavirus (HPV) totally. You are really a Godsent, I promise you that I will always recommend you. and to share your testimony to people. Contact him now thanks all. 
    CHIEF DR LUCKY HERBAL THERAPY CAN AS WELL CURE THE FOLLOWING VIRUSES :-
    1: HIV/AIDS
    2: HSV
    3: LUPUS
    4: ALS
    5: HEPATITIS B
    6: DIABETES
    7: HUMAN PAPILLOMAVIRUS (HPV)
    8: CANCER
    9: PAD
    10: PENIS ENLARGEMENT 
    11: THYROID ETC..  
    WhatsApp him on +2348132777335 or email (chiefdrlucky@gmail.com). 
    Website: https://chiefdrluckyherbaltherapy.wordpress.com/

    ReplyDelete
  6. I have been a herpes carrier for 2 years and I tried every possible means of curing but all of no useful until I saw a health promotion on a herbalist from West Africa who prepares herbal medicines to cure all sorts of diseases including #HSV and many others sickness but look at me today am very much happy and healthy, I'm telling you today don't lose hope keep trying God is with you, If you needs Dr.Chala help contact him on his email dr.chalaherbalhome@gmail.com or you can visit his website on http://drchalaherbalhome.godaddysites.com or https://mywa.link/dr.chalaherbalhome

    ReplyDelete
  7. Do you need to increase your credit score?
    Do you intend to upgrade your school grade?
    Do you want to hack your cheating spouse Email, whatsapp, Facebook, instagram or any social network?
    Do you need any information concerning any database.
    Do you need to retrieve deleted files?
    Do you need to clear your criminal records or DMV?
    Do you want to remove any site or link from any blog?
    you should contact this hacker, he is reliable and good at the hack jobs..
    contact : cybergoldenhacker at gmail dot com

    ReplyDelete