Valuetronics (VHL) handed in its 3QFY09 results last Friday, with revenue up 3.5% YoY (-22% QoQ) at HK$247.9m and net profit down 41.9% YoY (- 43.7% QoQ) at HK$12.5m. The modest top-line growth was mainly due to strength in OEM segment (+7.6% YoY) partially offset by decrease in sales within its ODM segment (-12.8% YoY), whereas the soft bottom-line performance was due to a change in sales mix, increase in commodity prices, added depreciation expenses from its new Daya Bay facilities and higher operating expenses. For 9MFY09, revenue registered HK$800.8m (+17.9%), meeting 80.3% of our FY09 sales forecast (77.3% of consensus), while net profit hit HK$55.8m (-21.2%), or 68% of our earnings figure (69.3% of consensus). Going forward, VHL expects to see great uncertainty in demand patterns and significant fluctuations in exchange rates, but expects to benefit from the various measures implemented by Chinese and Hong Kong governments. We will be speaking to management later for more information. Until then, we are putting our BUY rating and S$0.17 fair value under review.