- Venture Corp (SGX:V03)'s 3Q23 was weaker than expected with NPAT at S$66.4m compared to our S$70.2m due to lower revenue and higher operating costs.
- However, the outlook has improved and 3Q23 should likely be the bottom as management revealed that certain New Product Introductions (NPIs) will have started in 4Q23E and more are slated for FY24. Customer inventory levels are also down sharply and we should see more orders placed in 4Q23.
- - Read this at SGinvestors.io -
3Q23 still shows weakness
- With Venture Corp's revenue coming in lower at S$760.5m in 3Q23 than S$821.7m in 1Q23, cost-cutting measures were unable to keep pace with the drop in revenue resulting in net margin falling to 8.7% in 3Q23 from 9.5% in 3Q22.
3Q likely bottomed – brighter outlook
- - Read this at SGinvestors.io -
- As a result, we are now more confident that 3Q23 will likely be the bottom for Venture Corp and upcoming quarters should likely be better.
Share price overcorrected – 6.2% yield
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-11-06
Read also Maybank's most recent report:
2024-05-05 Venture Corporation - 1Q Disappoints But Brighter Outlook.
Previous report by Maybank:
2024-02-23 Venture Corporation - No Surprise In Results.
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
