Venture

[winston]

not vested

Venture (VMS SP)
Share Price: SGD19.20
Target Price: SGD22.00
Recommendation: Buy

Steady recovery

2H20 PATMI of SGD166.8m (-8.1% YoY) was in line with our estimate, and met the lower end of street’s.

We trim FY21-22E EPS by 4-5% to fine-tune margin assumptions, although our revenue numbers are largely unchanged – reflecting our confidence of the ongoing recovery.

New products are on track for launch in 2Q21 and into 2H21.

Maintain BUY with lower TP of SGD22.00 on unchanged 18.5x FY21E P/E (1.5 SD above 4-year mean).

Source: KE

https://factsetpdf.maybank-ke.com/PDF/2 ... 010a11.pdf

[winston]

not vested

Valuation

Maintain BUY with higher TP S$24.30.

Our TP is pegged to 20.3x on FY21F earnings, which is +2SD (standard deviation) of its 5-year average price-to-earnings (PE) vs +1SD previously, given that the worst could be over for its supply chain and demand remains strong.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... VMS_SP.xml

[winston]

not vested

VENTURE CORPORATION (VMS SP)

Recommendation : BUY
Fair Value : SGD 22.25

NEW YEAR, NEW HOPES.

FY20 net profit in-line; good cost control for the year

Looking forward to growth in its Life Science Technologies domain; potential opportunities in Battery Electric Vehicles

FV of SGD22.25 (previously SGD22.30)


Venture Corporation Ltd’s (Venture) 4Q20 net profit came in at SGD87m, with FY20 net profit coming in at SGD297m, broadly in-line with consensus.

Looking forward, we believe new products introductions are on track for launch in 2Q21 and through 2H21.

Venture has highlighted that expected demand for genomics-related products and solutions and advanced equipment for analysis/diagnostic use in biological systems will drive growth in its Life Science Technologies domain.

Venture is also optimistic about opportunities in adjacent domains, such as the Battery Electric Vehicle industry.

Venture possesses a strong balance sheet, with net cash of SGD929m despite an increase in total dividends paid in FY20 vs. FY19.

This should give the group ample dry powder especially as it ventures into new growth areas, and gives support to our FY21 dividend yield forecast of ~4.0% (as at 1 Mar 2021 close).

Source: OCBC

[behappyalways]

Venture Corporation sees 8.3% higher net profit of $65.3 mil in 1Q21 due to shortages in global parts and components
https://www.theedgesingapore.com/capita ... -parts-and

[winston]

not vested

RHB upgrades Venture Corp to 'buy' as unmerited share price weakness represents opportunity to accumulate

by Felicia Tan

He expects Venture to record a stronger 2QFY2021, marking yet another q-o-q improvement in the FY2021.

“This has been a consistent recovery across the four quarters in terms of profitability in FY2020 and we will likely see the same trend in FY2021 as we expect a continuous improvement in revenues and profitability”.

Source: The Edge

https://www.theedgesingapore.com/capita ... represents

[behappyalways]

Venture Corp sees 7.6% rise in 1H21 earnings; declares interim dividend of 25 cents
https://www.theedgesingapore.com/capita ... d-25-cents

[winston]

not vested

Venture Corp sees 7.6% rise in 1H21 earnings; declares interim dividend of 25 cents

by Amala Balakrishner

With this net asset value per ordinary share stood at 893.0 cents on June 30, up from 875.5 cents on Dec 31.

Revenue for the first six months of the year was up 4.9% to $1,432.2 million, on the back of robust customer orders.

In 2Q21, the group registered an 8.6% q-o-q growth in revenue to $745.5 million, bringing its net profit up 14.9% q-o-q to $75.1 million.

Source: The Edge

https://www.theedgesingapore.com/capita ... paign=FREE

[winston]

not vested

Overcoming components shortages
1H21 in line on softer seasonality assumptions

We deem 1H21 PATMI of SGD140.4m (+7.5% YoY) to be in line as we were expecting softer 1H21 seasonality than in previous years amid components shortages.

However, as we see risks that VMS may not be able to fully fulfil customers’ demand in 2H21, we have trimmed FY21E EPS by 4.5%.

We largely maintain FY22E EPS as the demand outlook remains robust.

We increase TP to SGD25.13, as we roll forward to 18.5x FY22E P/E. Buy.

Source: KE

https://mkefactsettd.maybank-ke.com/PDFS/229612.pdf

[winston]

not vested

VENTURE CORPORATION (VMS SP)
Recommendation : BUY
Fair Value : SGD 21.66

HOPING FOR A BETTER 2H21.

Working through component constraints
Demand appears to remain strong
FV of SGD21.66 (from SGD22.25)

Venture Corporation Ltd’s (Venture) 1H21 revenue rose 4.9% YoY to SGD1.4b, aided by strong customer orders, though unfulfilled orders had to be delayed till 2H21 on the back of the ongoing component shortages.

Net margin remained robust at 9.8% (+0.2ppt YoY).

1H21 PATMI increased by 7.6% YoY to SGD140.4m, which represented ~39.6% of our forecast.

We understand that 2Q21 numbers were held back by supply challenges and the Covid-19 situation in Malaysia.

Venture has also started vaccination programmes and targets to have over 80% of its Malaysia-based employees receive their first dose by 3Q21.

We understand that operations have been largely unaffected despite the extended movement control order (EMCO).

Venture notes that the demand outlook over the next 12 months appears ‘ebullient’.

Venture is seeing sustained expanding demand for innovative products and services in its fast-growing Life Science Technology and Genomics domain.

In the group’s Lifestyle Consumer Electronics Cluster, Venture is supporting the launch of a new platform of next-generation devices, which should commence in 2H21.

We maintain our target P/E of 18.2x but apply it to FY21/22 EPS, and following downward revisions to our estimates, our FV eases from SGD22.25 to SGD21.66.

Source: OCBC

[behappyalways]

Venture Corp reports slight sequential gain in 3QFY2021 earnings
https://www.theedgesingapore.com/capita ... 1-earnings