Venture Corporation - DBS Research 2023-09-11: Look Beyond A Weak 2023; Depressed Valuation Offers Favourable Entry Point

Venture Corporation - Look Beyond A Weak 2023; Depressed Valuation Offers Favourable Entry Point

Venture Corp (SGX:V03) | SGinvestors.ioVenture Corp (SGX:V03)
  • We upgrade Venture Corp (SGX:V03) to BUY from Hold, premised on:
    • At current FY23F/FY24F P/E of 12.6x/11.2x, Venture Corp's share price is trading at the previous low in March 2020, which was due to the COVID pandemic. We believe the attractive valuation should not be ignored for a company with strong financials, above-peers’ net margins and high net cash as % of market capitalization at 24%.
    • - Read this at -
    • Higher dividend on the cards?

Weak demand coupled with MSCI portfolio rebalancing led to a steep decline in Venture Corp's P/E.

  • - Read this at -
  • Venture Corp’s P/E valuation has plummeted to more than 2 standard deviation below its four-year average and is now at the depressed level seen in March 2020 when valuations were hit by the COVID pandemic.
  • At the current valuation of ~12x, Venture Corp is now trading on par with its global peers. Compared to Singapore-listed peers, the valuation is still ~10% above its peers, which can be justified by its high net margins of close to 10%, vs low single digits of its peers. Furthermore, Venture Corp is also in a strong net cash position, vs mainly net debt for its global peers.

A value trap or attractive entry level to position for an anticipated recovery in 2024?

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Lee Keng LING DBS Group Research | 2023-09-11

Read also DBS's most recent report:
2024-05-06 Venture Corporation - Improving Outlook.

Previous report by DBS:
2024-02-23 Venture Corporation - Commendable Margins Despite Challenging Environment; On The Path To Recovery.

Price targets by 4 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


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