Venture

Re: Venture

Postby winston » Tue Aug 13, 2019 4:06 pm

vested

What’s New

2Q19 results largely within expectations; net margins of 10.1% comparable to 1Q19 and 2Q18

Strong cash position; net cash increased 17.5% y-o-y on strong operating cash flow

Building new differentiating capabilities; gaining traction with existing and new customers

Retain BUY call and TP of S$18.60

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ehbgekhfj
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Venture

Postby winston » Tue Aug 13, 2019 4:23 pm

veste

Venture Corp (VMS SP, BUY, TP: SGD16.30) – UPGDRADE

New Product Ramp-Up In 4Q19; U/G To BUY

Results Review

Upgrade to BUY from Neutral, TP maintained at SGD16.30, 10% upside with 4.7% FY19F yield.

Despite worsening tensions between the US and China, Venture Corp delivered flat YoY earnings in 1H19 – in spite of its weaker 2Q19 numbers.

Management guided that there will be a few NPIs that should kick in by end-3Q19, and a ramp-up in production will likely happen in 4Q19, which should benefit margins in 2H.

Our TP is pegged to 13x FY19F P/E.

Source: RHB

https://research.rhbtradesmart.com/atta ... 668ca4.pdf
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AviChina Industry & Technology 2357

Postby winston » Tue Aug 13, 2019 4:41 pm

not vested

2Q19: In Line, Positioned To Capture Growth Opportunities; Upgrade To BUY

2Q19 net profit of S$90.9m (-7.2% yoy, flat qoq) is in line with our expectation and
consensus, with 1H19 forming 49-50% of both expectations.

Near-term outlook is mixed, as the volatile environment is expected to persist, but Venture has several initiatives to navigate this environment as well as several new product launches in late3Q19.

We trim our 2019F EPS and our target price by 1.2% to S$17.70, pegged to the long-term PE mean of 14.0x.

Upgrade to BUY on the back of recent share price weakness.

Source: UOBKH

https://research.uobkayhian.com/content ... 1f8439dd6e
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Re: Venture

Postby winston » Tue Aug 13, 2019 4:59 pm

not vested

Venture(VMS SP)

Share Price: SGD14.76
Target Price: SGD18.88
Recommendation: Buy

Diversity driven resilience

1H19 PATMI was in line with street but slightly short of our estimate.

Considering the challenges from customers’ product transitions and heightened customer caution, 2Q19 PATMI of SGD90.1m (-7% YoY) is respectable.

FY19-21E EPS is trimmed by 4-5% on increased customer caution.

Still, VMS remains our top pick as it is :-
i) a beneficiary of the US-China trade war and
ii) leveraged to exciting megatrends across a diverse set of customers.

TP falls to SGD18.88, on unchanged 2.2x FY19E P/B. BUY.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... ccd5e1.pdf
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Re: Venture

Postby winston » Fri Aug 16, 2019 9:27 am

not vested

Venture remains a favourite with analysts despite short seller attacks and trade headwinds

by Benjamin Cher

The share price soared to just below $30, and was threatening to break through the barrier. However, a negative short seller report put a stop to the climb and its share price plummeted to below $20 per share.

A blog post by short sellers Valiant Varriors tore into the company, claiming that Venture’s exposure to Phillip Morris International (PMI) via its I Quit Ordinary Smoking (IQOS) products was higher than it let on. The short sellers also predicted Venture’s 1Q18 ended March results would miss earnings forecast.

When this proved to be true, the short sellers released another report to hammer home their point. Venture’s share price plunged over $10 in two weeks, dropping to $19.60 by May 4, 2018 and since then, Venture’s share price has yet to cross $20.

For the latest 2Q19 ended June, Venture on Aug 8 reported revenue fell 5.1% to $903.5 million from $952.3 million a year ago while earnings declined 7.3% to $90.8 million from $97.9 million.

For the 1H19 though, revenue saw a slight increase of 1.3% to $1. 8 billion from a year ago although earnings fell 1% to $211.6 million from $213.8 million.

Venture reported 2Q19 earnings per share of 31.4 cents, down 6.5% from 33.6 cents a year ago. The counter also declared a 20 cents per share dividend to be paid on Sept 19.

Venture also boasted of its strong financial resources, saying it has $761.8 million in cash and bank balances as of June 30 which will allow it to capture growth opportunities as and when necessary.

So will Venture see a brighter 3Q19? Based on the seven “buy”, one “hold” and two “sell” according to Bloomberg data, analysts seem confident Venture will ride out this difficult period.

In an Aug 13 report, UOB Kay Hian analyst John Cheong says the cut in revenue guidance by client Illumina, did not seem to have a major impact on Venture’s revenue. Cheong has upgraded the stock to a “buy” with a lower target of $17.70.

In a separate Aug 13 report, RHB Research analyst Jarick Seet is similarly bullish, upgrading the stock to a “buy” with a target price of $14.76.

Seet expects Venture’s focus on its long-term strategy to pay off and although growth will still be tempered by the ongoing trade war, he expects higher contributions in 2H19 from customers won over past years.

On the other hand, Maybank Kim Eng analyst Lai Gene Lih expects Venture to be a beneficiary of the trade war as only 2% of its sales are affected by tariffs. In an Aug 13 report, Lai is maintaining a “buy” with a target price of $19.74.

Lai also remains confident about Venture’s exposure to megatrends such as genomics, food safety, air quality, 5G infrastructure and smart buildings through its customers such as Illumina, Thermo Fisher, Aglient, Keysight, Broadcom, Honeywell and ABB.

DBS Group Research analyst Lee Keng Ling is also maintaining Venture at a “buy” and a price target of $18.60. “We remain positive on VMS’s ability to monetise its unique offerings, know-how and hard-to-replicate ecosystems. It continues to build new differentiating capabilities to enhance its competitiveness,” says Lai in an Aug 13 report.

Lastly, Daiwa Capital Markets analyst Royston Tan is maintaining Venture at “outperform” with a target price of $17.90. “We believe its recent share price selldown amid trade-war concerns is overdone, as evident from its earnings resilience this quarter and see the current share-price weakness as a buying opportunity,” says Tan.

“Shares of Venture continue to trade at a steep discount vs. its international peers, which we deem as unwarranted given what we see as the company’s superior earnings generation profile, and we expect a gradual re-rating of the shares in 2H19,” he adds.


Source: The Edge

https://www.theedgesingapore.com/capita ... 401b309bc7
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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