Venture

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

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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

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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

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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
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Re: Venture

Postby winston » Sun Aug 25, 2019 9:14 am

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Venture Corporation Limited

Venture Corporation Limited (SGX: V03) is a leading global provider of technology solutions, products and services with capabilities spanning market research, design and development. The group has more than 30 subsidiaries and employs 12,000 people worldwide.

Venture is one of the largest players in the electronic contract manufacturing space and is a leading original equipment manufacturer (OEM) for many multinational clients.

The group has a long track record of growth and has survived through many downturns in its history, having being listed 27 years ago in 1992.

Its Q2 2019 earnings report showed a year-on-year fall in both revenue and profit but H1 2019 still saw slight year-on-year revenue growth and flat net profit.

Venture’s free cash flow for H1 2019 soared significantly higher, though, to S$194 million from just S$77 million during the same period last year, and the group also declared an unchanged interim dividend of 20 Singapore cents.

At the last closing price of S$14.98, Venture offers an enticing dividend yield of 4.7%.

Source: Motley Fool
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Re: Venture

Postby winston » Mon Sep 09, 2019 9:51 am

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Venture(VMS SP)
Share Price: SGD15.09
Target Price: SGD18.88
Recommendation: Buy

Past, present, future

We remain constructive on VMS’ long-term prospects despite the current challenging operating environment, as
i) customers historically show revenue resilience
ii) end-markets appear broadly stable and
iii) potential from growth markets, new products and higher allocations by customers as a result of the US-China trade war is intact.

We see room for DPS surprises, supported by strong FCF.

Maintain BUY with TP of SGD18.88.

Risks include broad customer weakness due to a US/ global recession.


Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... d7d869.pdf
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Re: Venture

Postby winston » Wed Oct 02, 2019 8:15 am

Venture Corp started at 'buy' with $17.68 target by Phillip; CGS-CIMB keeps 'buy'

by PC Lee

SINGAPORE (Sept 30): Phillip Securities Research is initiating coverage of Venture Corporation with a “buy” and a target price of $17.68.

Venture is currently trading at 13x earnings. Phillip says this is attractive because, over the last 10 years, the stock typically trades at a PE range of 16x.

Venture also boast a superior return on equity, profit margin and debt to equity ratio relative to its US listed peers,” says Phillip analyst Alvin Chia in a Monday report.

Venture provides technology services, products and solutions. The group’s revenue streams can be split into two main portfolios.

Portfolio 1 includes Life Science, Genomics, Medical Devices and Equipment, and Lifestyle Consumer Technology. Portfolio 2 includes Instrument, Networking & Communications, Security & Safety, Fintech, Advanced Payment Systems, and Printing & Imaging.

In FY18, Portfolio 1 contributed 43% of total sales or $1.5 trillion while the other 57% of total sales or $1.9 trillion came from Portfolio 2.

The more than 100 customers, Venture serves globally include Patriot anti-missile system manufacturer Raytheon, computing giants HP and IBM, electronics companies Honeywell and Agilent, healthcare product manufacturers Medtronic and Thermo Fischer, and semiconductor manufacturer Broadcom.

“We think Philip Morris, Illumina and Keysight, are likely to be Venture’s key customers,” says Chia.

Venture is one of the few manufacturers producing Philip Morris’ I-Quit-Original-Smoking (IQOS) product which faces less regulatory scrutiny than e-cigarette as it is a “heat” and not “burn” product.

On April 30, the Food and Drug Administration (FDA) approved the sales of IQOS 2.4 in the United States. The total number of iQOS users in the world has already hit nearly 11 million, according to Phillip.

Philip Morris has announced the launch of its new product, IQOS 3 Duo. This adds to PM’s IQOS family of products, says CGS-CIMB Research analyst William Tng in a Sept 26 report. Another possible product launch within 2H19 could be Philip Morris’ IQOS MESH product.

However, there has been a recent rash of mysterious vaping-linked illnesses in the US that have put healthy people in hospital with serious lung diseases. This led to some US states banning flavoured vaping products or banning all vapour-based e-cigarette sales, says Tng. Some countries, such as India, have also banned the sale of e-cigarettes (including IQOS).

Illumina is the manufacturer of products which are designed to accelerate and simplify genetic analysis. Over the last five years, Illumina has enjoyed revenue CAGR of 12.4% with FY20 revenues expected to hit about US$4 billion ($5.5 billion).

Keysight offers electronic measurement services using wireless, modular and software solutions. In FY18, Keysight achieved revenue growth of 21.6% y-o-y and FY20 sales in expected to hit more than US$4 billion.

Chia says design revenue accounted for more than 50% of Venture's total revenue, which is a “rare feat in the contract manufacturing space”.

Venture is also able to maintain a profit margin of 10.6% due to its extensive capability in R&D which results in value creation and customer stickiness, adds Chia.

Over the last 10 years, Venture’s spending on R&D has also been 1.72x higher compared to peers. In FY18, Venture’s R&D expenditure surged 66% to $83 million while peers spent an average of $23 million.

Chia believes this has allowed it to provide more value add to the customer, entrench the relationship and penetrate earlier into new projects.

As of 2H19, Venture has a net cash position of $760 million which is approximately 17% of its market cap.

“We forecast Venture to pay $202 million in dividends in FY19E, this equates to a pay-out ratio of 55% and a yield of 4.6% at current share price,” says Chia.

Among its peers, Venture has the largest (86%) proportion of its production facility in South-east Asia, namely in Malaysia.

This means Venture is likely to be a long-term beneficiary from the supply chain disruption in China due to the ongoing trade dispute with the United States, adds Chia.

Phillip's $17.68 target price is based on 14x earnings.

“Our valuation is conservative given Venture’s superior return on equity, profit margin and balance sheet. We expect Venture’s dividend yield to be stable at 4.6%,” says Chia.

CGS-CIMB Research has a “add” with a $16.28 target price.

“Our current base-case net profit forecast for 3Q19 is $90.4 million, down 11.9% on year,” says Tng.

Venture is due to report its 3Q19 results on Nov 8.

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Re: Venture

Postby winston » Wed Oct 02, 2019 9:38 am

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A Holistic Look At Venture Corporation Limited (SGX:V03)

Source: Simply Wall St

https://simplywall.st/stocks/sg/tech/sg ... ed-sgxv03/
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Re: Venture

Postby winston » Fri Oct 04, 2019 10:03 am

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Venture Corp – BUY

New product launches in late-3Q19 could help maintain profitability.

New product launches are expected in late-3Q19, such as in the test and measurement as well as the life sciences industries. As a result, we expect Venture to perform better qoq in 4Q19.

Ability to navigate a challenging environment. Although the volatile environment due to the US-China trade war and geopolitical issues is expected to persist, Venture has several initiatives to navigate this environment and will continue to diversify its value creation in the multiple ecosystems it participates in.

Backed by its strong financial resources, Venture is well placed to capture growth opportunities.

Share Price Catalyst
Event: New product launches in 2H19, US-China trade deal.
Timeline: 3-6 months.

Source: UOBKH
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Re: Venture

Postby winston » Mon Oct 21, 2019 8:56 am

vested

Taking a breather at S$15.98

Given global GDP growth concerns and slower revenue growth for Venture’s customers, we now think 2H19 may be weaker than 1H19.

We keep our Add call but cut FY19F core EPS by 2.8% to reflect the above view.

We will reassess our FY20-21F forecasts post 3Q19 results (8 Nov).

Technically, we suggest locking in profits with better re-entry levels at S$14.70-15.00.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2CCA1BB293
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