- Our 3Q23 net profit estimate (S$64.0m) for Venture Corp (SGX:V03) was spot on. Venture Corp reported 3Q23 net profit of S$63.3m (-35.0% y-o-y; -4.7% q-o-q).
3Q23 net profit in line; likely the trough
- - Read this at SGinvestors.io -
- 9M23 net profit formed 75.3% of our FY23F forecast but was below consensus’ FY23F expectation (at 69.2% of consensus FY23F net profit).
- Net profit margin fell 0.7% point y-o-y to 8.9% in 9M23. Given the 18.8% y-o-y revenue decline in 9M23, the slight 0.7% point decline in net profit margin suggests that Venture Corp likely reduced its operating expense run-rate for 9M23.
We see net profit recovering 5.4% q-o-q in 4Q23F
- - Read this at SGinvestors.io -
- Given the higher 4Q22 base, we think net profit could still decline 31.9% y-o-y. Venture Corp's net profit growth could resume in FY24F, in our view, given the benefit of a lower base comparison in FY23F.
- Venture Corp guided that new product introductions (NPIs) with existing and new customers are on track to be rolled out in FY24F. It is also seeing a pick-up in demand from its life science and industrial customers for its module solutions.
Reiterate ADD
- 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 2023-11-03
Read also CGS-CIMB's most recent report:
2024-01-24 Venture Corporation - FY23 net Profit Could Fall ~28% Y-o-y.
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
