- Venture Corp (SGX:V03)'s FY22 results were within expectations. Revenue and PATMI were 102%/97% of our FY22e forecast. 4Q22 PAT rose 3.4% y-o-y. Gross margin was the weakest in seven years.
- There was caution in the company’s outlook. The environment in the short term is uncertain. Healthcare, life science and semiconductor sectors are the medium-term opportunities with their long product cycles.
- - Read this at SGinvestors.io -
- Our target price for Venture Corp is lowered to S$19.70 (previously S$20.80), 16x P/E FY23e. The macro backdrop for electronic exports has declined significantly and the global economy slowing.
The Positive
Healthy growth in revenue.
- - Read this at SGinvestors.io -
- Pre-pandemic, revenue growth was a negative 4% from FY17 to FY19. We also expect revenue growth to slow in 2023 with the absence of the Malaysia re-opening lift experienced in 2022.
The Negative
Major decline in margins.
- Read more at SGinvestors.io.
