Venture

Re: Venture

Postby winston » Thu Jul 11, 2019 10:54 am

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Jun 26, 2019

CLSA analyst Low Horng Han noted in a report on Monday that even though Venture Corp has "enjoyed a broader customer base and product mix over the past year, it may be challenged to deliver growth as the macro outlook has weakened".

Mr Low added: "Customer Broadcom’s recent profit warning citing the trade conflict has reduced earnings visibility and could be a prelude to downward earnings per share revisions from other customers."


RHB analyst Jarick Seet said: "We note that global peers have been impacted, as we see weaknesses in their financials. Despite Venture Corp being more resilient, it should be hard for the company to avoid headwinds ahead."


UOB Kay Hian analyst John Cheong said that this could introduce some near-term volatility to its financial performance but it may be mitigated by new product launches in the second half of the year.

That said, Mr Cheong believes that the uncertain macroeconomic environment contributes to the higher risk that new launches might be delayed.


Venture Corp has indicated that it will beef up manufacturing capacity in Malaysia in the first half of 2019.


Source: Business Times

https://www.businesstimes.com.sg/compan ... es-persist
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Re: Venture

Postby winston » Mon Jul 15, 2019 9:59 am

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Short-term outlook could be challenging

We think Illumina’s guidance cut confirms our fears that Venture could see an earnings decline in FY19F.

We cut our earnings by 11-12% over FY19-21F to reflect the cautious and uncertain environment amongst corporates, affecting end-demand.

Maintain Hold with a lower TP of S$15.73.

Source: CIMB

https://brokingrfs.cimb.com/TZM6qcHVuNH ... jHFTA2.pdf
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Re: Venture

Postby winston » Mon Jul 15, 2019 10:10 am

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Buy on dips

Maintain BUY on lower TP of S$18.60.

We have cut our earnings forecasts for Venture by 6-8%, mainly premised on the cloudy outlook and product transition period for some of its customers.

We expect a weaker 2Q19 both on a y-o-y and q-oq basis, and a stronger 2H19 vs 1H19.

Despite the cut in earnings, we are maintaining our BUY call.

Venture stands out for its strength in the various technology domains and its partnership with key industry leaders. Its above-average net margin is a key differentiating factor from its peers.

The strong net cash should support expectations of a repeat of the higher 70-Sct DPS in FY19F, which works out to a yield of 4.7%.

Venture is one of the few blue chips that still offers an attractive yield in this yield-hungry environment.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =egebckhea
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Re: Venture

Postby winston » Mon Jul 15, 2019 12:38 pm

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Venture Corp ($14.90, down 41 cents) saw its share price drop by 2.7% last Friday on higher-than-usual trading volume, of which we believe is attributed to a negative revenue guidance by one of its customers, Illumina Inc.

Shares of Illumina had dropped more than 16% last Thursday in extended trading after the genetics company slashed its full-year guidance and previewed disappointing second-quarter revenue.

Illumina said it expects to report a second quarter revenue of approximately US$835 million,
compared to US$830 million in the same quarter of last year.

Analysts had projected US$887.9 million in revenue, according to Bloomberg consensus estimates. For the full year, Illumina's said it now expects revenue to grow about 6%. That’s far below its previous projection for about 13% to 14% revenue growth in fiscal 2019.

The company said the second quarter results were impacted by population genomics initiatives which did not close in the second half of June as expected.

Illumina also reported weakness in the direct-to-consumer market. Illumina expects to report its full second-quarter results on July 29.

“We are obviously disappointed with our second quarter financial results. Our preliminary analysis suggests that these challenges are transitory and do not reflect a macro change to the fundamentals of our business,” said Francis deSouza, president and CEO of Illumina.

“Despite our shortfall this quarter, we remain as enthusiastic about the long-term growth prospects for our markets as we have ever been, and are committed to setting the industry’s bar for consistency and execution in the dynamic and rapidly growing world of genomics.”

Coupled with news that the manufacturing sector in Singapore had declined by 6% q-o-q when it was disclosed that Singapore’s advanced 2Q GDP estimates came in at an annualised -3.4% q-o-q (below consensus expectations of 0.5% expansion and weaker than 3.8% expansion in 1Q19), the share price of Venture Corp was the worst performer of all STI-component counters on 12-Jul-19.

Additionally, the export curbs on certain semiconductor materials used to make high-tech equipment on South Korea by Japan as initiated by the latter earlier this month continues to cloud the broader global manufacturing tech industry.

We had downgraded our recommendation on Venture from a buy call during 25-Jun-19 to neutral when the share price was $17.30, as we noted that the macro outlook for Venture seems to be deteriorating.

We wrote then that coupled with worries over Venture’s end customers holding back their orders due to trade war concerns and inventory destocking, we had opined that there may be down-side risks to earnings estimates by the market expectations.

Our above-mentioned concerns on Venture continue to remain valid today.

At S$14.90, market cap is S$4,313.9mln, trailing P/E is 12.5x, P/B is 1.8x and dividend yield is 4.7%. We are maintaining our “NEUTRAL” recommendation on Venture, as while its valuations are currently inexpensive & its balance sheet remains strong with a net cash position
of S$789.2mln, its fundamental outlook is uncertain and visibility clouded by the ongoing global trade war, tech war between US&China and Japan&South Korea as well as weakening global purchasing manager indices for global manufacturers.

Source: Lim & Tan
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Re: Venture

Postby winston » Tue Jul 16, 2019 2:49 pm

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Will Venture Corp take another hit as customer guides for lower growth?

by Stanislaus Jude Chan

SINGAPORE (July 15): Shares in electronics manufacturer Venture Corporation have fallen a long way since April last year, when it dived spectacularly after a steady two-year climb.

Venture’s stock price broke through a previous high of $10.00 in January 2017, and streaked to a dizzying height of $28.82 in early April 2018 – threatening to break the psychological level of $30.00.

And then it all crumbled.

First, Philip Morris, for which Venture supplies parts for its IQOS heat-not-burn cigarette device, reported first-quarter profit down 41% from the previous period, marking the first such decline in five quarters.

Around the same time, financial blog Valiant Varriors put out a short-seller report that claimed Venture was too exposed to the tobacco company.

The one-two combo proved too much for the manufacturing giant, which made matters worse by keeping its cards close to its chest and failing to reject the short seller’s arguments.

Over the short span of a few days, shares in Venture tumbled to close at $19.93 by the end of April 2018, losing close to a third of its market value.

Since then, its stock price has fallen even further. On July 12, shares in Venture closed at $14.90 – nearly halved from its peak in April last year.

Now, a guidance cut by another customer, Illumina, is raising fears that Venture could take another hit – and see an earnings decline in FY19F.

The Nasdaq-listed provider of sequencing and array-based solutions for genetic research has cut its FY19 revenue growth expectations to 6%, compared to its previous estimate of 13-14%.

However, investors are expected to can get more clarity on the impact of Illumina’s substantial cut in growth expectations on July 29, when it hosts its 2Q19 results call.

“Illumina’s products are supposedly more resilient given that they are not discretionary consumer electronics items. We think the lowering of guidance by Illumina is proof that the uncertainties and cautiousness caused by US-China tensions are affecting end-demand,” says CGS-CIMB Research analyst William Tng.

As such, CGS-CIMB is cutting is core earnings per share (EPS) forecasts by 11-12% over FY19-20F. This is “to reflect growing earnings concerns arising from macro conditions,” Tng says.

Consequently, the brokerage is keeping its “hold” call on Venture, but lowering its target price to $15.73, down 12% from $17.88 previously.

According to Tng, Venture’s long-term technical trend remains bearish.

"The price could test the $14.63 – $14.50 key support area next before a rebound takes over,” says Tng. “We expect the $15.55 – $16.07 resistance area to cap the upside move in the rebound.”

Shares in Venture closed 10 cents higher, or up 0.7%, at $15.00 on Monday.

According to CGS-CIMB valuations, this implies an estimated price-to-earnings (PE) ratio of 12.8 times and a dividend yield of 4.6% for FY19F.

Source: The Edge

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

Postby winston » Mon Jul 22, 2019 9:13 am

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Silver Linings Playbook
2Q19 may miss; but maintain BUY


Looking past 2019E, multiple levers of growth appear intact and VMS is a beneficiary of the US-China trade war, as around 85% of production is outside China.

However, 2Q19 may miss amid customers’ product transitions, and a potential share price fall may provide an even more attractive entry.

History suggests the stock is well supported at longterm mean dividend yield of 5.3%, which implies SGD13.20 on FY19E basis.

We await 2Q19 results to reassess our forecasts.

Maintain BUY and ROE-g/COE-g TP of SGD19.74 (based on 2.2x FY19E P/B).

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... e3bf93.pdf
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Re: Venture

Postby winston » Fri Aug 09, 2019 8:15 am

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BRIEF - Venture Corporation Posts Net Profit Attributable Of S$90.8 Mln For Q2

Aug 8 (Reuters) - Venture Corporation Ltd :
* DECLARED INTERIM DIVIDEND OF S$0.20 PER SHARE
* NET PROFIT ATTRIBUTABLE WAS S$90.8 MILLION FOR 2Q 2019,DOWN7.3% YOY
* QTRLY GROUP REVENUE OF S$903.5 MILLION, DOWN 5.1%

Source: Reuters
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Re: Venture

Postby behappyalways » Mon Aug 12, 2019 2:47 pm

Venture posts 7.3% drop in 2Q earnings to $90.8 mil on lower revenue
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Re: Venture

Postby winston » Tue Aug 13, 2019 9:41 am

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Financial Performance

2Q 2019 net profit1 of S$90.8 million on revenue of S$903.5 million, translating to net profit margin of 10.1%.

1H 2019 net profit of S$181.7 million on revenue of S$1,832.2 million, translating to net profit margin of 9.9%.

Declared interim dividend of S$0.20 per share


FINANCIAL POSITION & CASH FLOW

Net cash position of S$760.2 million as at 30 June 2019.
Free cash flow of S$220.2 million generated in 1H 2019.
Net asset value per share of S$8.26 as at 30 June 2019.

https://links.sgx.com/FileOpen/Venture% ... eID=573785
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Re: Venture

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

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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
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