- Venture Corp (SGX:V03)'s 1H23 revenue of $1.58b (-11.9% y-o-y) was slightly below our expectations, accounting for 44% of our full year forecast (vs 46% in 1H22). The softer revenues were on the back of an unfavourable comparison to a high base from pent up demand post-COVID in addition to weaker demand across most of the technology domains and customers’ inventory destocking.
- - Read this at SGinvestors.io -
- a 9% decline in revenues from Portfolio B (comprising instrumentation, test & measurement etc).
1H23 net profit of $140m (-19.7% y-o-y) was below our estimates, representing 42% of our full year forecast.
- Gross margin for 2Q was stable at ~25%. The fall in net profit was largely attributed to a contraction in net profit margins by 0.9 percentage points from 9.7% in 1H22 to 8.8% in 1H23. The decline in margins was largely due to higher operating costs as energy costs and wages remained high.
- - Read this at SGinvestors.io -
- Venture Corp's management mentioned that cost cutting measures are underway and is in the midst of right sizing its staff count. The effective tax rate is largely stable at 18.1% in 1H23 vs 18.0% in 1H22.
Balance sheet remains strong; maintains interim dividend of S$0.25/share.
- Read more at SGinvestors.io.
