Venture Corporation - CGS-CIMB Research 2024-01-24: FY23 net Profit Could Fall ~28% Y-o-y

• In its 9M23 business update press release, Venture Corp (SGX:V03) said its performance was affected by softened demand and inventory adjustments from its customers.

Read through from Plexus (PLXS US)'s guidance

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• We think the read through from Plexus is that 4Q23F demand environment could similarly remain weak for Venture Corp.

Key customers’ revenue growth outlook has slowed

• We note that Bloomberg consensus revenue growth expectations for Venture Corp’s customers have slowed from 1.24%/5.20%/7.81% for FY23F/FY24F/FY25F as at 6 Oct 2023 to – negative 0.72%/2.58%/6.85% as at 17 Jan 2024.
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Lowering FY23-25F forecasts

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William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2024-01-24 SGinvestors.io

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