- Venture Corp’s 2Q23 earnings of S$66m (-27% y-o-y/-10% q-o-q) missed our expectations by 9%, with 1H23 earnings accounting for 44% of our full-year estimate. 1H23 revenue fell 12% y-o-y due to demand softening across the majority of its technology domains and customers’ inventory destocking.
- - Read this at SGinvestors.io -
- We trim our 2023 earnings forecast for Venture Corp by 12%. Maintain HOLD on Venture Corp with a 14% lower target price of S$14.60.
1H23 results below expectations due to softening demand and customers’ inventory destocking.
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- The first half of the year is seasonally lower and normally forms around 46-48% of full-year earnings. Revenue fell 12% y-o-y in 1H23 against a high base last year due to demand softening across the majority of Venture Corp’s technology domains and customers’ inventory destocking.
- 1H23 net margin fell 0.9ppt to 8.8%, mainly due to lower operating leverage as revenue declined. Also, Venture Corp continued to face wage and energy cost pressure. Venture Corp is looking to right-size its workforce without having to restructure.
Expect second half demand to remain soft.
- Read more at SGinvestors.io.
