Venture

Re: Venture

Postby behappyalways » Sun Apr 28, 2019 4:38 pm

Venture Corp reports 8.6% rise in 1Q earnings to $90.9 mil on higher revenue
https://www.theedgesingapore.com/ventur ... er-revenue
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Re: Venture

Postby winston » Tue Apr 30, 2019 3:26 pm

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Venture gets 'buy' from OCBC, DBS but Maybank says watch out for near-term volatility

By Samantha Chiew

SINGAPORE (Apr 29): Analysts are mostly positive on Venture Corporation after it announced that its 1Q19 earnings have increased by 8.9% y-o-y to $90.9 million.

This was mainly due to an 8.5% y-o-y increase in revenue to $928.8 million, despite pricing pressures and intense competition in the business environment.

On a fully diluted basis, earnings per share (EPS) rose to 31.5 cents in 1Q19, compared to 28.8 cents in 1Q18.

OCBC Investment Research is keeping its “buy” call on Venture with a target price of $20.89.

The group’s results came in above the research house’s expectations, with core PATMI margin coming in at a 1Q record of 9.8%.

Despite the positive results, Venture may see 2Q19 impacted by customer product transitions as well as general cautiousness given the ongoing Sino-US trade tensions.

In a Friday report, analyst Joseph Ng says, “However, we believe that on a full-year basis, these headwinds should be more than offset by scheduled customers’ new product launches in 2H19, as well as contribution from newly acquired customers.”

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.

The increasing complexity of equipment such those required for diagnostics will also present more value creation opportunities down the road.

Furthermore, with the group’s growth on track, DBS Group Research also continues to rate Venture a “buy” with a target price of $21.70.

In a Friday report, analyst Lee Keng Ling says, “Venture stands out for its hard-to-replicate ecosystems and unique positioning at the forefront of technology.

Its coveted partnerships with global technological leaders across various attractive end-markets have allowed the group to command industry-leading margins and are testament to its success in the area of value-creation.”

Meanwhile, with record R&D expenses and inventory levels – possible leading indicators for the group - coupled with strong earnings outlook by key customers, the group provides confidence in its ability to at least sustain its robust growth momentum over the medium term.

On the other hand, Maybank Kim Eng believes that Venture’s near-term outlook is “cloudy”. Hence, it has downgraded its recommendation on Venture to “hold” from “buy”.

But Maybank has increased its target price to $19.74 from $19.23 previously to reflect the respectable set of results and its ROE-g/COE-g TP 3% on an unchanged price-to-book ratio of 2.2 times.

Venture has warned that near-term performance could be volatile as a result of customers’ product transitions into new generations, but highlights this will be mitigated by new product launches in 2H19.

In a Friday report, analyst Lai Gene Lih says, “The volatility may result in a tough YoY earnings comparison in the next quarter, in our view.”

While 2H19 is expected to be seasonally stronger than 1H19, VMS has hinted that the traditional 45:55 revenue seasonality pattern in 1H:2H may be less pronounced this year, mainly due to a mixed outlook from its broad base of more than 100 customers as a result of protracted trade tensions and the global economic slowdown.

“We recommend investors await a more attractive entry point, and/or when it is becomes apparent earnings volatility has passed,” says Lai.

As at 12.40pm, shares in Venture are trading at $17.58 or 2.2 times FY19 book with a dividend yield of 3.6%.

Source: The Edge

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

Postby winston » Thu May 02, 2019 11:11 am

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Venture Corp (VMS SP): The US Food and Drug Administration (FDA) has cleared Philip Morris International (PM US) to sell its iQOS product in the US.

Altria Group (MO US) will sell the iQOS in the US as PM mainly operates overseas.

MO plans to start selling the product in Atlanta this summer.

iQOS is a key diversification strategy for both companies as US smoking rates hit new record lows.

Source: KGI
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Re: Venture

Postby winston » Thu May 02, 2019 4:25 pm

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Re: Venture

Postby winston » Fri May 03, 2019 9:27 am

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IQOS approved for sale in the US

The FDA has approved IQOS 2.4 for sale in the US.
IQOS will go on sale in summer, starting with Atlanta.
We project minimal earnings impact for now.

Our fundamental call remains Hold. Our target price of Sin$17.88 is also unchanged, still based on 12.5x P/E (0.5 s.d. below the 12-year forward average P/E of 15.4x).


Source: CIMB

https://brokingrfs.cimb.com/PTl8WK5bYWb ... fzeUw2.pdf
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Re: Venture

Postby winston » Tue Jun 25, 2019 11:54 am

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Venture Corp ($17.30, up 9 cents) has seen its share price increase by 27.9% year-to-date, despite having guided in its 1Q19 outlook statement that certain customers’ product transitions might introduce near-term volatility to the Group’s performance while warning of a mixed business sentiment across the Group’s diversified customer base.

We note that this share price rally has outperformed the benchmark Straits Times Index (+7.9% year-to-date) of which Venture is a component of, and we believe that this relative outperformance by Venture as compared to the STI may soon grind to a halt.

Of the year-to-date share price performances among the 30 STI component counters, we highlight that Venture’s share price performance ranks as the second best (behind Thai Beverage, up 41.6% year-to-date) even though its earnings growth prospects are only somewhat similar to that of the STI.

Analysts on average are expecting EPS growth of 3.2% for the STI in 2019 over 2018, which is not too far off from the analysts’ average forecasts of EPS growth at 3.4% yoy for Venture in 2019.

Given that valuations of the STI at 13.1x P/E, 2.0x P/B, and 4.1% dividend yield are also more attractive than Venture’s, we thus opine that the share price outperformance of 20 percentage points year-to-date by Venture as relative to STI is unwarranted.

Furthermore, the macro outlook for Venture seems to be deteriorating of late. As reported by the World Semiconductor Trade Statistics on 04- Jun-19, the semiconductor body is now projecting annual global sales of semiconductors to drop 12.1% to US$412bln in 2019.

WSTS added that this reflects expected decrease in almost all major categories, while all
geographical regions are also expected to decline. Additionally, we note that this is a
downgrade from their previous forecasts, as the WSTS was expecting only a 3.0% dip in annual global sales of semiconductors in 2019 for their report on 20-Feb-19.

Coupled with worries over Venture’s end customers holding back their orders due to trade war concerns and inventory destocking, we thus believe that there may exist downside risks to earnings estimates by the various analysts.

While the market is expecting Venture’s FY19F net earnings to grow 3.4% yoy to S$382.7mln,
we believe that this is too optimistic and we forecast that Venture would only record flat earnings of S$370.1mln as seen in its FY18 net profit at best.

Additionally, investors and certain fund managers (whose investment mandate is to only invest
in index component stocks) cognizant of these issues pertaining to Venture may opt to switch out of the stock and throw their lot into other blue chips which are more attractively valued
and offer earnings growth.

Since our ‘buy on weakness’ recommendation on 02-May-19 when Venture was trading at
$16.97, share price then hit a low of $14.63 but subsequently attained a high of $17.39 last week.

At current share price of $17.30, market cap is $4,984.5mln, P/E is 14.4x, P/B is 2.1x and
dividend yield is 4%.

With the various negatives aspects surrounding Venture, we are now downgrading our recommendation on the stock to HOLD, although its strong balance sheet with net cash of S$789.2mln that equates to 15.8% of market cap would offer some form of support.

Source: Lim & Tan
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Re: Venture

Postby winston » Wed Jun 26, 2019 9:55 am

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Major Headwinds Ahead Target Price (Return) SGD16.30 (-1%)
Price: SGD16.46
Market Cap: USD3504m
Avg Daily Turnover (SGD/USD) 18.4m/13.6m

Maintain NEUTRAL but TP lowered to SGD16.30 from SGD19, 1% downside – pegged to 13x FY19F P/E.

Things are not going well for global manufacturing with the worsening of the US-China trade conflict.

We expect headwinds in 2H ie product delays, and deterioration of margins due to a lower revenue base. As such, we lower our FY19F PATMI by 8.4% to reflect these potential headwinds.

Source: RHB

https://research.rhbtradesmart.com/atta ... 5dfd25.pdf
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Re: Venture

Postby winston » Wed Jul 03, 2019 10:33 am

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An Intrinsic Calculation For Venture Corporation Limited (SGX:V03) Suggests It's 28% Undervalued

Source: Simply Wall St.

https://finance.yahoo.com/news/intrinsi ... 38147.html
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Re: Venture

Postby winston » Sun Jul 07, 2019 9:41 am

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Uncertainty for Venture

The other company that saw its shares sold off by institutional investors is Venture.

As a quick introduction, Venture is an electronics manufacturing services provider with expertise in a wide range of activities.

Similar to the banks, Venture has delivered a positive quarterly performance lately. For the quarter ended 31 March 2019, the Group registered revenue of S$928.8 million, an increase of 8.5% year-on-year on the back of broad-based growth.

Similarly, net profit attributable to owners of the company rose 8.6% year-on-year to S$90.9 million for the reported quarter. Such performance is commendable given the challenges that the hi-tech manufacturing sector is facing.

Nevertheless, there are risks that investors should keep in mind before investing in Venture. My colleague Royston Yang recently wrote an article pointing out a number of these. Such factors include uncertainty with major customers, trade tensions, as well as valuation.

Going forward, several macroeconomic factors, such as trade wars and a global economic slowdown will likely lead to weak sentiment among customers.

Moreover, some customers’ product transitions might introduce near-term volatility to the group’s performance, yet this could be mitigated by some new product launches.

Source: Motley Fool
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Re: Venture

Postby winston » Wed Jul 10, 2019 2:18 pm

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Founded in 1984 and headquartered in Singapore, Venture Corporation Ltd (SGX: V03) is a global electronics services provider that can support design, manufacturing, and e-fulfilment for high-mix, high-value and sophisticated products.

In terms of historical growth, Venture’s earnings have climbed from S$139.8 million in FY2014 to S$370.1 million in FY2018 (the company has a 31 December year-end). During the same period, revenue grew from S$2.47 billion to S$3.48 billion.

Venture
Net profit growth: 27.6%
Loans-to-equity ratio: Negligible
ROE: 16.4%
Source: Company annual report; author’s compilation

As of 31 December 2018, Venture had a strong balance sheet with a cash position of S$712.8 million and just S$1.8 million in debt.

The company clocked an ROE of around 16% in FY2018.

At Venture’s current share price of S$16.75, it has a PE ratio of 12 and a dividend yield of 4.2%.

Source: Motley Fool
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