Venture

Re: Venture

Postby winston » Mon Nov 05, 2018 9:01 am

not vested

Venture Corp posts 27.5% drop in 3Q earnings to $80.8 mil on lower revenue

By Stanislaus Jude Chan

SINGAPORE (Nov 2): Venture Corp reported a 27.5% drop in earnings to $80.8 million for the 3Q ended September, from $111.4 million a year ago, on the back of lower revenue.

3Q18 revenue fell 27.4% to $770.4 million, from $1.06 billion a year ago.

The decline was mainly attributable to the impact arising from customers’ planned transition to new replacement products and some customers’ M&A activities for the reported quarter.

As at end Sept, cash and cash equivalents stood at $714.2 million.

Looking ahead, Venture Corp says it anticipates that new product introductions from several customers are expected to drive healthy revenue improvement sequentially in the next quarter.

The group also expects to capture revenue contribution from several new customers in the next quarter, with improving traction in subsequent reporting periods.

Further, the group believes that business momentum should pick up again after certain customers’ M&A integration processes are completed.

Shares in Venture closed 81 cents higher, or up 5.2%, at $16.26 on Friday.

Source: The Edge

https://www.theedgesingapore.com/ventur ... 401b309bc7
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Re: Venture

Postby winston » Mon Nov 05, 2018 11:00 am

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Venture Corp: A series of unfortunate events

Those without a Netflix subscription can catch the series in Venture’s 3Q18 results. 3Q18 revenue fell 27.4% YoY to S$770.4m due to an unfortunate confluence of negative transitory events, though QoQ recovery is to be expected in 4Q18.

On the topic of the trade war, management noted that they are in talks to shift production from their current customers’ plants in China to Venture’s facilities in Malaysia and Singapore, while new customers from the US, who would traditionally source products from China, are now also participating in this supply migration process.

We are also encouraged to note that despite the macro rumblings, feedback on customer sales has been encouraging till date, with purchase orders backing up this optimism.

We maintain our 15x target P/E, given its stronger-than-average net profit margins and healthy balance sheet. However, we have assumed more conservative earnings estimate for FY18 and FY19, thus dropping our FV estimate from S$23.23 to S$20.13.

Source: OCBC
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Re: Venture

Postby winston » Mon Nov 26, 2018 10:33 am

Optimistic on the long-term outlook

We hosted an NDR for Venture on 23 Nov 2018.
The company remains confident on its long-term prospects.
Trade tariffs could prove to be positive for Venture. Meanwhile, the company has various experienced professionals to address the succession issue.

Venture generally tries to aim for a 6-10% net profit margin range.

Venture has more than 50-60 key professionals in the company that are part of the team that is driving future growth for the company.




Source: CIMB

https://brokingrfs.cimb.com/I2KCwXw-obl ... U6urA2.pdf
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Re: Venture

Postby winston » Fri Dec 07, 2018 9:25 am

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Venture kept at 'sell' by UOB on grimmer production outlook

By PC Lee

SINGAPORE (Dec 6): UOB KayHian is maintaining Venture Corp at “sell” given increasing risk production share of IQOS (I quit ordinary smoking) devices could be shifted away to another contract manufacturer by Philip Morris which is seeking to improve economics.

In a Thursday report, analyst Foo Zhi Wei says UOB channel checks into the IQOS supply chain indicate that the second manufacturer, Flex has reached the supplier concentration limit for Philip Morris although UOB was not able to ascertain as to whether Venture has similarly hit a production ceiling.

Venture is currently producing “heat not burn” tobacco products IQOS 2.4+ and IQOS 3 products while Flex is currently producing IQOS 2.4+ and IQOS 3 Multi products. From what UOB understands, Philip Morris is likely to introduce a third manufacturer which will likely produce IQOS 2.4+.

Foo says a third manufacturer entering the fray will likely try to do so at a competitive price compared to the current incumbents with Flex likely to be more cost effective with a lower cost base between the two.

“Logically, Philip Morris will want to shift some of its higher cost production to this new manufacturer to improve economics on its IQOS devices,” says Foo, adding that Flex could be involved in IQOS 3 production as well.

Venture has significant capacity based in Malaysia and as the production outlook of other clients may slow down in 2019, this points to earnings downside risk for the company.

“Maintain “sell” with an unchanged target price of $12.90,” says Foo.

Shares in Venture are down 49% from its April peak of $29.51 at $15.01 or 25 times FY19F earnings.

Source: The Edge

https://www.theedgesingapore.com/ventur ... 401b309bc7
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