- Downgrade Venture Corp to NEUTRAL from Buy, with new S$14.40 target price from S$18.26, 4% upside from the current Venture Corp's share price.
- - Read this at SGinvestors.io -
- Although Venture Corp's valuation is compelling, at -1 standard deviation of its historical mean, visibility of customer demand and earnings outlook remain weak. Given the soft outlook, we now peg our target price to 14x blended FY23-24F from 16x.
Venture Corp's 1H23 earnings below expectations.
- - Read this at SGinvestors.io -
- While gross margin held stable at 25%, operating margin of 10.1% missed our 10.7% expectations due to higher energy costs and staff costs as a percentage of sales. Earnings as a result met 43% of our full year forecasts.
- Venture Corp's net cash however, grew from S$2.78 to S$3.08 per share. An interim dividend of S$0.25 amounting to a payout ratio of 52% was declared, in line with expectations. See Venture Corp's dividend date.
Anticipate soft near term outlook.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2023-08-08
Previous report by RHB:
2023-07-20 Venture Corporation - 2Q Likely Weak, But Outlook Is Positive; Keep BUY.
Price targets by 5 other brokers at Venture Corp Target Prices.
Listing of research reports at Venture Corp Analyst Reports.
Relevant links:
Venture Corp Share Price History,
Venture Corp Announcements,
Venture Corp Dividends & Corporate Actions,
Venture Corp News Articles
