Venture

[behappyalways]

Venture Corp 1Q earnings up 36% to $48.6 mil on higher revenue
http://www.theedgemarkets.com.sg/ventur ... er-revenue

[winston]

not vested

Venture Corp: Count on its growth momentum

Venture Corporation Ltd (VMS) recorded a strong start to FY17 as 1Q17 revenue jumped 33.7% YoY to S$843.1m on the back of new product and programme execution with several customers.

In-line with revenue growth, 1Q17 operating expenses rose 33.1% YoY to S$784.2m.

Consequently, 1Q17 profit before tax (PBT) jumped 41.3% YoY to S$60.0m.

Despite a 72.7% increase in tax expense, PATMI surged 35.6% YoY to S$48.6m, and met our expectations as it formed 23.7% of our FY17 forecast.

Note that the first quarter has historically always been the weakest period in any given year since FY13.

In our view, VMS’ strategy of value creation for customers that has been in the works for the past few years is now bearing fruit and we expect it persist in the years to come.

In order to appropriately factor in VMS’ longer-term growth outlook, we are switching our valuation methodology from P/E-based to DCF-based (risk free rate: 2.6%; WACC: 7.7%; terminal growth: 2%) over a five-year horizon to derive a 12-month FV of S$13.00 (prev: S$11.00).

Source: OCBC

[winston]

not vested

Venture Corp: Opportune time to accumulate

Having reached its 2017 high of S$13.07 on 11 May 17, Venture Corporation Ltd’s (VMS) share price has since corrected 9.7% to S$11.80 last Friday.

This is in-line with the pullbacks seen in the U.S. for the technology stocks. That said, having recorded a strong start to FY17, VMS’ long-term positive outlook remains intact as we expect margins improvement to persist as its strategy of value creation for customers continues to bear fruit, coupled with continuous efforts to increase productivity.

In our view, VMS’ fundamentals remain strong with a diversified revenue and customer base, and has been in net cash position since FY08, allowing it to maintain its annual dividends of at least S$0.50/share, even during the global financial crisis period.

Looking ahead, we expect revenue growth to persist steadily for VMS. In addition, market watcher World Semiconductor Trade Statistics (WSTS) organisation projects annual global market growth of 11.5% and 2.7% in 2017 and 2018, respectively.

Supported by a strong balance sheet, stable cash flow, and steady earnings growth momentum, we reiterate BUY on VMS with an unchanged FV of S$13.00.

We believe the recent pullback presents opportunities for investor to accumulate, which translates to a forward dividend yield of ~4.7%.

Source: OCBC

[winston]

not vested

Share price pullback makes Venture Corp an opportune ‘buy’

By Michelle Zhu

SINGAPORE (July 10): OCBC is maintaining its “buy” call on electronics provider Venture Corporation with an unchanged fair value of $13 after the stock price corrected 9.7% to $11.80 at market close last week on Friday.

In a Monday report, lead analyst Eugene Chua says he continues to like the stock for its strong balance sheet, stable cash flow, and stable earnings growth momentum.

Chua believes the recent pullback, which is in line with the movements seen in the US for technology stocks, presents opportunities for investors to accumulate as it translates to a forward dividend yield of about 4.7%.

Venture has been in a net cash position since FY2008, which the analyst highlights has allowed the group to maintain its annual dividends of at least 50 cents per share, even during the global financial crisis period.

Its diversified revenue and customer base of close to 200 customers across different industries also implies there is no significant revenue concentration risk on a single customer, he adds.

Looking ahead, Chua expects Venture’s Test & Measurement/Medical & Life Science/Others (TMO) segment to drive revenue growth, and opines that there is much headroom for the group to raise its dividend above the usual 50 cent-per-share rate, assuming that the group has no competing needs for cash.

“Having recorded a strong start to FY17, Venture’s long-term positive outlook remains intact as we expect margins improvement to persist as its strategy of value creation for customers continues to bear fruit, coupled with continuous efforts to increase productivity.

This strategy is also the reason that places Venture in a better position in terms of margins relative to its peers,” says the analyst.

Shares in Venture Corp closed 20 cents higher at $12.00.

Source: The Edge

https://www.theedgesingapore.com/smr/?q ... 8-87358173

[winston]

not vested

Venture posts 61% rise in 2Q Earnings

Source: The Edge

https://www.theedgesingapore.com/ventur ... 4-87358173

[winston]

not vested

Gaining strength

Excellent 2Q17 results, with earnings coming in above consensus/CIMB expectations at 32%/33% of full-year expectations. 1H17 formed 57% of CIMB FY17F.

Sales growth of 48.3% yoy in 2Q17 was driven by customers across all segments.

Net cash from operations improved to S$103m in 2Q17 (2Q16: S$33.6m; 1Q17: negative S$0.1m).

2Q17 effective tax rate was lower at 17.3% versus 19.0% in 1Q17. Management said effective tax rate could be 17% from FY18 onwards (previous guidance: 17.0-18.5%).

Target price raised to S$15.80, based on 15.2x (10-year historical average) FY18FEPS.

Upgrade from Hold to Add.

Source: CIMB

https://brokingrfs.cimb.com/6QRlRvNp90X ... 2y6lg2.pdf

[winston]

not vested

Venture Corporation (VMS SP)

2Q17: Unseasonal Steep Sequential Ramp-up; Upgrade To BUY

Venture reported net profit of S$69.8m for 2Q17 (+60.9% yoy), ahead of our expectation of S$54.6m.

We believe the steep sequential ramp-up in revenue was driven by medical devices.

The solid results increased the probability that Venture would raise its final dividend from 50 to 55 S cents.

Upgrade to BUY with a higher target price of S$15.15.

Source: UOBKH

https://research.uobkayhian.com/content ... 9d53a20c3a

[winston]

not vested

Venture Corp: Impressive business execution

Venture Corporation Ltd’s (VMS) 1H17 recorded a 41.3% growth in revenue to S$1.86b, on the back of diversified customer base and continuing strong execution of customers’ programmes launched in prior quarters.

In-line with revenue growth, 1H17 operating expenses rose 40.2% YoY to S$1.72b.

Consequently, 1H17 PATMI came in above expectations as it jumped 49.5% YoY to S$118.4m, which formed 57.3% of our FY17 forecasts.

Looking ahead, as VMS makes progress on its strategy of value creation for its customers, we expect it to continue to capture additional opportunities (e.g. new programmes across its existing customer base, new customers acquired etc.) to further grow its revenue, with margins expanding alongside.

We remain positive over the long-term outlook of VMS, supported by its solid balance sheet, stable cash flow, and steady earnings growth momentum.

On above expectations 1H17, we are raising our FY17F/FY18F PATMI by 13%/17%, respectively.

Source: OCBC

[behappyalways]

venture-corp-posts-61-rise-2q-earnings-698-mil-higher-revenue
https://www.theedgesingapore.com/ventur ... er-revenue

[winston]

not vested

DBS raises Venture's Target Price by 16% amid strong growth

Source: The Edge

https://www.theedgesingapore.com/dbs-ra ... 1-87358173