Stock Track | Valuetronics Plummets 11.02% in Early Trading on Expected Profit Decline Due to Trio AI Impairments

Stock Track
May 13

Valuetronics Holdings Ltd (BN2.SI) saw its stock price plummet by 11.02% in early trading on Wednesday, following the company's announcement of an expected sharp decline in profitability for its fiscal year 2026.

The electronics manufacturing services provider flagged a significant drop in net profit for FY2026 compared to the previous year, based on a preliminary review of its unaudited management accounts. The expected decline is driven mainly by non-cash impairment provisions tied to the company's exposure to Trio AI, a 26.6%-owned associate established to provide GPU and AI-related cloud services in Hong Kong.

According to the company's disclosure, Trio AI has not gained sufficient commercial traction despite the admission of a new joint venture partner, with some equipment rental payments to the Valuetronics group remaining overdue. The impairments are expected to cover investment cost, advances, receivables, leased GPUs and related ancillary hardware, including undeployed GPU assets held by the group.

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