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.

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