Grand Venture Technology - CGS-CIMB Research 2023-11-16: Expect A Stronger 2H24

Grand Venture Technology - Expect A Stronger 2H24

Grand Venture (SGX:JLB) | SGinvestors.ioGrand Venture (SGX:JLB)

3Q23 net profit was below our expectation

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  • 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

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  • 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

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Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

William TNG CFA CGS-CIMB Research | 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


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