In his new role, Wong will provide leadership to all business units within the group, as well as drive its strategy and direction

 

TECHNOLOGY company Venture Corporation has named Wong Chee Kheong, 62, as its group chief executive officer (CEO) effective Nov 1.

 

In his new role, Wong will provide leadership to all business units within the group, as well as drive its strategy and direction, said Venture on Tuesday (Oct 1).

 

Welcoming the appointment, Venture&rsquo s executive chairman Wong Ngit Liong is confident that Wong Chee Kheong&rsquo s &ldquo substantial technical knowledge, close relationship with key customers and alignment with Venture&rsquo s values&rdquo will drive the success of the group.

 

Wong Ngit Liong led the Venture Group as managing director from 1989, and then as CEO until the end of 2021.

 

Separately, Venture also announced that the CEO of its technology products and solutions group Lee Ghai Keen will resign on Oct 31 due to personal reasons. He will remain with the company for a period of time to facilitate a smooth transition, said Venture.

 

Lee was appointed CEO of the technology and solutions group in June last year after a restructuring of the company&rsquo s main business groupings. The group comprises various businesses, including life-science and genomics, as well as precision engineering.

 

At the same time, Wong Chee Kheong took charge of the other business segment that was created following the restructuring.

 

The advanced manufacturing and design solutions group designs and manufactures electronic products for the healthcare, luxury lifestyle and wellness industries. It also makes semiconductor-related equipment and modules.

 

Wong Chee Kheong joined Venture in 2003 and has worked in departments such as product development and manufacturing, as well as IT and global supply base management. He also served as Venture&rsquo s chief operating officer from January 2022 to May 2023.

 

He graduated from the National University of Singapore with a first class honours in electrical engineering.

UK-based fund manager Silchester International Investors has upped its stake in Venture Corporation V03 0.07% to 7.07% from 6.99% previously.

 

Silchester, on Aug 13, bought 243,700 shares from the market for a total of $3.4 million or $13.897 per share.

 

On July 4, Silchester bought another 480,000 shares from the market for $6.8 million or $14.194 per share.

 

The fund manager is also the substantial shareholder of ComfortDelGro C52 0.7% . It increased its stake in the transport operator to 8.01% on Aug 6 when it bought 2.35 million shares for $3.23 million or $1.377 per share.   

Revenue for H1 was down 12.5 per cent to S$1.4 billion from S$1.6 billion, due to softer demand in the first quarter of 2024

 

TECHNOLOGY solutions provider Venture Corporation : V03 -0.28% reported a net profit of S$123.7 million for the first half of the year ended Jun 30, down 11.7 per cent from S$140 million in the corresponding period a year ago.

 

In a bourse filing on Tuesday (Aug 6), it proposed an interim dividend of S$0.25 per share, unchanged from H1 2023&rsquo s interim dividend, to be paid on Sep 12.

 

Revenue for H1 was down 12.5 per cent to S$1.4 billion from S$1.6 billion, due to softer demand in the first quarter of 2024. The lower revenue was also in tandem with changes in finished goods, work in progress and decreased raw materials used, it said.

 

Net profit margin stood at 8.9 per cent for H1, compared to 8.8 per cent for the first half of 2023, driven by its differentiated capabilities and a tight focus on cost optimisation, said the company.

 

Venture&rsquo s expenses for employee benefits for H1 decreased year-on-year, driven by reduction in subcontract labour, overtime charges and headcount leading to lower salaries, while research and development expenses were lower in this first half, due to customers requirements.

 

Foreign currency exchange gains for H1 were higher year on year, attributed to active monitoring of foreign exchange risk and execution of astute forex management strategies, said Venture.

 

Other operating expenses were lower year on year due to decrease in utilities, manufacturing overheads, and repairs and maintenance cost. Investment revenue improved in H1 driven by strong net interest income growth due to the company&rsquo s higher net cash coupled with favourable interest rates.

 

Looking ahead, Venture said it remains proactive in pursuing multiple initiatives to further improve its performance for the second half of 2024. &ldquo These include the onboarding of new customers, new product introduction activities and supporting customers with geopolitical risk mitigation strategies,&rdquo it said.

 

&ldquo Venture continues to invest in expanding its capabilities in targeted technology domains. This will broaden the group&rsquo s value creation pathways for quality growth,&rdquo it added.

It previously downgraded the counter on account of customers destocking

 

RHB on Thursday (Jul 25) upgraded Venture Corporation : V03 +0.47% to &ldquo buy&rdquo from &ldquo neutral&rdquo , and raised its target price to S$16.50 from S$14.20.

 

The research team expects the group, which provides technology services, products and solutions, to see the tail end of its customers&rsquo destocking phase and recover in FY2025. It previously downgraded the counter on account of the destocking situation.

 

Its new target price implies a potential upside of 10.5 per cent from Venture&rsquo s last trading price of S$14.93 as at 2.08 pm on Thursday. Shares of Venture were up 0.2 per cent or S$0.03 at the time.

 

At $16.50, Venture&rsquo s valuation is 16 times earnings, versus a peer average of 17 times. RHB said the stock is trading at an attractive one standard deviation below its forward price-to-earnings ratio.

 

Additionally, the research team raised its earnings forecast for FY2025 to FY2026 by a further 3 per cent. It previously priced in some recovery and now expects earnings growth of 5 to 7 per cent for the FY2025-26 period, as restocking commences in FY2025.

 

RHB expects longer-term growth to come from new customers in the EMS++ (electronics manufacturing services), precision engineering and Ventech Group businesses, which include customers in medical technology and lifestyle sectors, as well as &ldquo promising technology domains&rdquo .

 

The group previously reported that it expects new businesses from customers relocating closer to its operating locations to mitigate geopolitical risks. It is also offering differentiated and high-value solutions, supported by its manufacturing and research and development capabilities.