by winston » Thu Oct 12, 2017 9:37 am
not vested
Venture Corp: Strong growth momentum to continue
Venture Corporation Ltd (VMS) posted strong double-digit YoY revenue growth over the past three quarters, and even more impressively, it recorded double-digit YoY growth in its PATMI over the past eight quarters, driven by margins expansion that we expect to persist going forward.
And since FY12, VMS has consistently posted stronger 2H results compared to 1H, a trend which we expect to continue in FY17 as well. Hence, all things considered we are raising our FY17–FY21 PATMI forecasts by 10%–15%.
Separately, we believe VMS CEO’s, Mr. Wong, recent open market purchases of VMS’s shares provide a very clear positive signal of his confidence over where he believes the company is heading towards.
Consequently, as we factor in for a stronger 2H in FY17 on the back of continued margins expansion, our FV increases from S$14.80 to S$20.33.
Reiterate BUY on VMS. Given its outstanding results for the past few quarters, solid balance sheet and sanguine outlook, we believe there is much scope for VMS to potentially increase its dividend, which has ranged between S$0.50 to S$0.55/share since FY08.
Source: OCBC
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