Post Reply
221-240 of 920
Venture Corp H1 profit down 11.7% to S$123.7 million on lower revenue, demand
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.
Boring set of results...only positives is thr fact management has assured shareholders that 2H2024 results would be better..think ir cuts work for all companies other than banks
25cts dividends for 1H 2024.
Today meltdown, will see which co does SBB.
Just starting, higher returns to come.
sinpacent ( Date: 01-Aug-2024 16:51) Posted:
|
Broke 52 weeks high 🚀
Going forward there?s only one direction, moving up 📈
RHB upgrades Venture Corp to &lsquo buy&rsquo on expected recovery
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.
RHB upgrades Venture Corp to BUY as it anticipates recovery moving into FY2025
RHB Bank Singapore analyst Alfie Yeo has upgraded Venture Corporation to BUY from neutral with a higher target price of $16.50 from $14.20 previously.
We think Venture Corp is seeing the tail-end of its customers destocking phase, and anticipate its recovery moving into FY2025, Yeo writes in his July 25 report. The analyst downgraded his rating on Feb 25 due to the continued customer destocking situation, but that is expected to ease in 2H2024.
Venture earnings for the 4QFY2023 ended Dec 31, 2023, and the 1QFY2024 were dismal due to weak customer orders stemming from destocking activities. Customer destocking remained evident in the 1QFY2024 although they appeared to be tapered compared to the quarter before.
At the time, we continued to expect customer demand to remain subdued going into 1H2024, before a recovery takes place in 2H2024, says Yeo. Some of VMS peers have also experienced similar customer inventory situations earlier on &ndash they were also optimistic on sequential improvement, with customers in certain sectors seeing inventory bottoming out, he adds. Hence, we expect improving customer orders as inventory levels in the supply chain ease going into 2H2024 and FY2025.
To this end, Yeo has raised his earnings forecasts for FY2025 and FY2026 by 3%. Before that, the analyst already priced in some form of recovery to take place. As a result, he now sees Ventures earnings to grow by 5% to 7% for FY2025 to FY2026.
He also sees a positive longer-term outlook for the stock, as he expects growth to be driven by new customers in the electronics manufacturing services (EMS), precision engineering and Ventech Group businesses. New businesses as well as Ventures differentiating and high-value solutions are also catalysts to the groups growth in the longer term.
Venture peers currently trade at 17 times forward P/E, while its current mean P/E is at 16 times. Since we have turned more positive on Ventures earnings prospects, we now peg our valuation at 16 times blended FY2024 &ndash FY2025 P/E (from 14 times). This results in a higher target price of $16.50, Yeo explains.
The 16 times target P/E is also more in line with the peer average. The stock is trading at an attractive -1 standard deviation (s.d.) from the forward P/E mean, he adds.
RHB Bank Singapore analyst Alfie Yeo has upgraded Venture Corporation to BUY from neutral with a higher target price of $16.50 from $14.20 previously.
We think Venture Corp is seeing the tail-end of its customers destocking phase, and anticipate its recovery moving into FY2025, Yeo writes in his July 25 report. The analyst downgraded his rating on Feb 25 due to the continued customer destocking situation, but that is expected to ease in 2H2024.
Venture earnings for the 4QFY2023 ended Dec 31, 2023, and the 1QFY2024 were dismal due to weak customer orders stemming from destocking activities. Customer destocking remained evident in the 1QFY2024 although they appeared to be tapered compared to the quarter before.
At the time, we continued to expect customer demand to remain subdued going into 1H2024, before a recovery takes place in 2H2024, says Yeo. Some of VMS peers have also experienced similar customer inventory situations earlier on &ndash they were also optimistic on sequential improvement, with customers in certain sectors seeing inventory bottoming out, he adds. Hence, we expect improving customer orders as inventory levels in the supply chain ease going into 2H2024 and FY2025.
To this end, Yeo has raised his earnings forecasts for FY2025 and FY2026 by 3%. Before that, the analyst already priced in some form of recovery to take place. As a result, he now sees Ventures earnings to grow by 5% to 7% for FY2025 to FY2026.
He also sees a positive longer-term outlook for the stock, as he expects growth to be driven by new customers in the electronics manufacturing services (EMS), precision engineering and Ventech Group businesses. New businesses as well as Ventures differentiating and high-value solutions are also catalysts to the groups growth in the longer term.
Venture peers currently trade at 17 times forward P/E, while its current mean P/E is at 16 times. Since we have turned more positive on Ventures earnings prospects, we now peg our valuation at 16 times blended FY2024 &ndash FY2025 P/E (from 14 times). This results in a higher target price of $16.50, Yeo explains.
The 16 times target P/E is also more in line with the peer average. The stock is trading at an attractive -1 standard deviation (s.d.) from the forward P/E mean, he adds.
Possibly international money that was previously invested in MAG7 now looking for a home to diversify from those particular stocks but still wishing to play the AI theme.
Should be a lot more of that to come.
Should be a lot more of that to come.
The chart looks good. Powering up.
interesting....
MambaFinancial89 ( Date: 08-Jul-2024 20:16) Posted:
|
Silchester added to its position as per the SGXNet announcement which was just released. Excellent. Buckle up. #DYODD
Let's hope this is not a 1 day breakout..@ least it has to stay above 15 bucks this round!
Luckygal ( Date: 08-Jul-2024 10:23) Posted:
|
Finally it' s stirring...
Think the Board might be sleeping as well as they announced a significant buyback programme last year which has barely been used. Do they not see value at these prices? Scary. #DYODD
Luckygal ( Date: 04-Jul-2024 10:04) Posted:
|
Why is this giant still sleeping?
CGS International sees better 2HFY2024 revenue for Venture Corp, keeps target price unchanged
CGS International analyst William Tng is keeping his ADD call and target price of $15.93 unchanged on Venture Corporation as the company guided for its 2QFY2024 revenue to improve q-o-q and 2HFY2024 revenue to improve h-o-h.
Tng writes in his June 20 report: Venture also commented in its 1QFY2024 business update that it is onboarding new customers in electronics manufacturing service, precision engineering and ventech group businesses, including customers in the medtech and lifestyle sectors, as well as promising technology domains.
Additionally, Tng notes that based on customers feedback, the company also sees demand strengthening in several technology domains for the rest of FY2024.
He continues: In its 1QFY2024 business update meeting, Venture also commented that its new Batu Kawan facility could add an additional 10% to the groups total floor area and that the company is exploring with customers to gradually commence production at this new factory.
Meanwhile, customer concentration risk has increased for Venture, as Tng points out that Venture has two major customers each accounting for more than 10% of revenue in FY2023 versus one such customer in FY2022.
The analyst adds that the rise of artificial intelligence (AI) data centres will lead to a demand for networking-related components and modules used in data centres, which could benefit Venture, as the company supplies such components to American semicon players Broadcom, Marvell Technology and Lumentum Holdings.
Overall, Tng expects to see a resumption in earnings per share (EPS) growth in the FY2024 to FY2026 as customers orders increase. The analyst also sees share price support from its 5.40% dividend yield over the same period.
Tngs unchanged target price is still based on 14.6 times Ventures expected FY2025 P/E, or at its 15-year average.
Re-rating catalysts noted by him include new product launches by customers and better-than-expected revenue opportunities over FY2024 to FY2026 as further business opportunities arise from companies keen to diversify their production orders from China to Malaysia.
Conversely, key downside risks include potential supply chain disruptions affecting the availability of parts and components, labour shortages potentially lowering its production output and a worsening global economic outlook potentially further reducing orders from customers.
As at 11.40am, shares in Venture Corporation are trading 11 cents higher or 0.79% up at $14.11.
CGS International analyst William Tng is keeping his ADD call and target price of $15.93 unchanged on Venture Corporation as the company guided for its 2QFY2024 revenue to improve q-o-q and 2HFY2024 revenue to improve h-o-h.
Tng writes in his June 20 report: Venture also commented in its 1QFY2024 business update that it is onboarding new customers in electronics manufacturing service, precision engineering and ventech group businesses, including customers in the medtech and lifestyle sectors, as well as promising technology domains.
Additionally, Tng notes that based on customers feedback, the company also sees demand strengthening in several technology domains for the rest of FY2024.
He continues: In its 1QFY2024 business update meeting, Venture also commented that its new Batu Kawan facility could add an additional 10% to the groups total floor area and that the company is exploring with customers to gradually commence production at this new factory.
Meanwhile, customer concentration risk has increased for Venture, as Tng points out that Venture has two major customers each accounting for more than 10% of revenue in FY2023 versus one such customer in FY2022.
The analyst adds that the rise of artificial intelligence (AI) data centres will lead to a demand for networking-related components and modules used in data centres, which could benefit Venture, as the company supplies such components to American semicon players Broadcom, Marvell Technology and Lumentum Holdings.
Overall, Tng expects to see a resumption in earnings per share (EPS) growth in the FY2024 to FY2026 as customers orders increase. The analyst also sees share price support from its 5.40% dividend yield over the same period.
Tngs unchanged target price is still based on 14.6 times Ventures expected FY2025 P/E, or at its 15-year average.
Re-rating catalysts noted by him include new product launches by customers and better-than-expected revenue opportunities over FY2024 to FY2026 as further business opportunities arise from companies keen to diversify their production orders from China to Malaysia.
Conversely, key downside risks include potential supply chain disruptions affecting the availability of parts and components, labour shortages potentially lowering its production output and a worsening global economic outlook potentially further reducing orders from customers.
As at 11.40am, shares in Venture Corporation are trading 11 cents higher or 0.79% up at $14.11.
Seems Blackrock sold and bought back with Silchester and Ameriprise also buying...but share price as usual is not moving