- Grand Venture Technology (SGX:JLB)’s revenue fell 13.4% y-o-y to S$28.5m in 3Q23. 9M23 revenue was above at 76.2% of our FY23F but in line with Bloomberg consensus.
3Q23 net profit was below our expectation
- - Read this at SGinvestors.io -
- The 17.6% y-o-y decline in Grand Venture Tech's 9M23 revenue was mainly due to the 33% y-o-y decline in the semicon segment revenue. The Life Science segment was a bright spot with 9M23 revenue up 12.2% y-o-y due to wallet share gains with customers.
- Despite the 7.5% q-o-q improvement in revenue from S$26.9m in 2Q23 to S$28.5m in 3Q23, gross profit margin narrowed 2.0% points from 25.0% in 2Q23 to 23.0% in 3Q23. This was due to the reduced utilisation rate at its Suzhou facilities as revenue in the Electronics segment was lower.
A stronger 2H24F based on Grand Venture’s outlook statement
- - Read this at SGinvestors.io -
- For the semicon segment, based on its conversations with customers, Grand Venture Tech expects the industry downturn to bottom out towards the end of 2023F and a gradual improvement in operating conditions from 2024F with a more pronounced uptick from 2H24F onwards.
Cutting FY23F EPS forecast given 3Q23 net profit miss
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-16
Read also CGS-CIMB's most recent report:
2024-01-04 Grand Venture Technology - M&A Strategy Continues.
Price targets by 2 other brokers at Grand Venture Target Prices.
Listing of research reports at Grand Venture Analyst Reports.
Relevant links:
Grand Venture Share Price History,
Grand Venture Announcements,
Grand Venture Dividends & Corporate Actions,
Grand Venture News Articles
