Page 12 of 18

Re: Venture

PostPosted: Mon Nov 05, 2018 11:00 am
by winston
not vested

Venture Corp: A series of unfortunate events

Those without a Netflix subscription can catch the series in Venture’s 3Q18 results. 3Q18 revenue fell 27.4% YoY to S$770.4m due to an unfortunate confluence of negative transitory events, though QoQ recovery is to be expected in 4Q18.

On the topic of the trade war, management noted that they are in talks to shift production from their current customers’ plants in China to Venture’s facilities in Malaysia and Singapore, while new customers from the US, who would traditionally source products from China, are now also participating in this supply migration process.

We are also encouraged to note that despite the macro rumblings, feedback on customer sales has been encouraging till date, with purchase orders backing up this optimism.

We maintain our 15x target P/E, given its stronger-than-average net profit margins and healthy balance sheet. However, we have assumed more conservative earnings estimate for FY18 and FY19, thus dropping our FV estimate from S$23.23 to S$20.13.

Source: OCBC

Re: Venture

PostPosted: Mon Nov 26, 2018 10:33 am
by winston
Optimistic on the long-term outlook

We hosted an NDR for Venture on 23 Nov 2018.
The company remains confident on its long-term prospects.
Trade tariffs could prove to be positive for Venture. Meanwhile, the company has various experienced professionals to address the succession issue.

Venture generally tries to aim for a 6-10% net profit margin range.

Venture has more than 50-60 key professionals in the company that are part of the team that is driving future growth for the company.

Source: CIMB ... U6urA2.pdf

Re: Venture

PostPosted: Fri Dec 07, 2018 9:25 am
by winston
not vested

Venture kept at 'sell' by UOB on grimmer production outlook

By PC Lee

SINGAPORE (Dec 6): UOB KayHian is maintaining Venture Corp at “sell” given increasing risk production share of IQOS (I quit ordinary smoking) devices could be shifted away to another contract manufacturer by Philip Morris which is seeking to improve economics.

In a Thursday report, analyst Foo Zhi Wei says UOB channel checks into the IQOS supply chain indicate that the second manufacturer, Flex has reached the supplier concentration limit for Philip Morris although UOB was not able to ascertain as to whether Venture has similarly hit a production ceiling.

Venture is currently producing “heat not burn” tobacco products IQOS 2.4+ and IQOS 3 products while Flex is currently producing IQOS 2.4+ and IQOS 3 Multi products. From what UOB understands, Philip Morris is likely to introduce a third manufacturer which will likely produce IQOS 2.4+.

Foo says a third manufacturer entering the fray will likely try to do so at a competitive price compared to the current incumbents with Flex likely to be more cost effective with a lower cost base between the two.

“Logically, Philip Morris will want to shift some of its higher cost production to this new manufacturer to improve economics on its IQOS devices,” says Foo, adding that Flex could be involved in IQOS 3 production as well.

Venture has significant capacity based in Malaysia and as the production outlook of other clients may slow down in 2019, this points to earnings downside risk for the company.

“Maintain “sell” with an unchanged target price of $12.90,” says Foo.

Shares in Venture are down 49% from its April peak of $29.51 at $15.01 or 25 times FY19F earnings.

Source: The Edge ... 401b309bc7

Re: Venture

PostPosted: Tue Feb 12, 2019 9:53 am
by winston
not vested

Venture: expecting qoq revenue growth

Guided by Venture’s qoq revenue growth expectations, we estimate 4Q18 net profit at S$100.7m.

Key risk is impact on economic growth from the US-China trade war.

Maintain Add and S$17.44 TP based on 12.56x FY20F core EPS.

Source: CIMB ... RYjaQ2.pdf

Re: Venture

PostPosted: Mon Feb 25, 2019 9:17 am
by winston
not vested

Patience will be rewarded

4Q18/FY18 revenue at 25%/97% of our FY18 forecast was in line.

4Q18/FY18 core net profit in line at 30%/102% of our FY18 forecast due to judicious cost management and qoq revenue improvement.

Key risk is impact on economic growth from the US-China trade war.

Maintain Add with a higher S$17.88 TP, based on 12.56x FY20F core EPS.

Source: CIMB ... il1QQ2.pdf

Re: Venture

PostPosted: Mon Feb 25, 2019 11:25 am
by winston
not vested

Venture Corp: Results spark joy

Venture produced a neat set of 4Q18 results, even by Marie Kondo’s standards. Stripping out one-offs, core PATMI came in at S$109.2m, which was 103.3% of our 4Q18 forecast. PBT and core PATMI margins remained strong, while the group has proposed a final dividend of 50 S-cents/share, taking the full FY18 dividend to 70 S-cents/share (FY17: 60 S-cents/share).

We note that the group has garnered interest from customers who are interested in having their production done out of Southeast Asia rather than in China due to the ongoing US-China trade spat.

In order to keep profitability and margins on a sustainable trajectory, management noted that it will look to broaden its ability to create and capture value by creating new ecosystems, leveraging its Clusters of Excellence.

We roll forward our valuations, and maintain our P/E target of 15.0x, which is ~0.5 S.D. above Venture’s 5-year mean. Thus, our fair value increases from S$20.13 to S$20.89.

Maintain BUY with a fair value estimate of S$20.89.

Source: OCBC

Re: Venture

PostPosted: Tue Feb 26, 2019 6:41 pm
by behappyalways
Venture Corp reports 0.7% dip in FY18 to $370 mil on absence of one-off gain ... e-one-gain

Re: Venture

PostPosted: Fri Apr 26, 2019 9:21 am
by winston
not vested

1Q 2019

Financial Performance
Revenue 8.5% higher year-on-year to S$928.8 million.
Net profit grew 8.6% year-on-year to S$90.9 million.
Earnings per share improved to 31.5 Singapore cents.

Financial Position & Cash Flow
Healthy net cash position of S$805.2 million as at 31 March 2019.
Free cash flow of S$100.7 million generated in 1Q 2019.
Net asset value per share improved to S$8.45 as at 31 March 2019. ... eID=555793

Re: Venture

PostPosted: Fri Apr 26, 2019 9:49 am
by winston
not vested

Venture Corp (VMS SP)

1Q19: Near-term Volatility To Be Mitigated By New Launches In 2H19

1Q19 net profit of S$90.9m (+8.5% yoy) is in line with our expectations and consensus, forming
24-25% of both expectations.

Near-term outlook could be volatile due to some costumers’ transitions but this will be
mitigated by new product launches in 2H19.

We raised our 2019F EPS by 5% and increase our target price by 15% to S$19.01, pegged to
the long-term PE mean of 14.1x (up from 12.7x).

Maintain HOLD. Entry price: S$17.00.

Source: UOBKH ... 40bd83c4f3

Re: Venture

PostPosted: Fri Apr 26, 2019 10:00 am
by winston
not vested

Venture Corp: Building its next ad-Venture

Venture Corporation Ltd’s (Venture) 1Q19 results came in above our expectations.

Revenue rose 8.5% YoY to S$928.8m, due to broad-based growth registered across the group’s technology domains and customers’ new product introductions.

This continues from the V-shape top-line recovery that we have expected post-3Q18.

Core PATMI came in at S$91.0m, which comprised 23.2% of our full-year forecast. Core PATMI margin came in at 9.8%, which is a 1Q record for the group.

To position itself for the long term, management noted that it is still expanding its presence in the area of life sciences, leveraging its strong reputation.

Separately, the group has also managed to secure a new customer, which is one of the leading companies involved in producing test equipment for chip manufacturing.

Venture continues to demonstrate stronger margins than its peers, and remains in a healthy net cash position.

We maintain our FV of S$20.89 and our BUY rating.

Source: OCBC