- Venture Corporation (SGX:V03) reported 1Q24 revenue of S$667mil, -18.9% y-o-y and -9.5% q-o-q, due to lower overall customer demand amid some remaining headwinds.
- The life sciences sector and certain segments of the network and communications market still saw some destocking in 1Q 2024. Net profit came in at S$60.1mil, (-18.3% y-o-y, -9.9% q-o-q).
- - Read this at SGinvestors.io -
Net margins stable at 9.0%.
- With increasing focus on operational execution and productivity enhancements, net profit margin was stable at 9.0% for 1Q24, vs 9.1% in 4Q23 and 8.9% in FY23.
Stronger balance sheet with bigger war chest.
- Venture Corp’s net cash position, with zero borrowings, improved to S$1.19bn (~29% of current market cap) as at 31 March 2024, up 12.7% from S$1.056bn as at end-4Q23. Working capital also improved by S$66.9mil compared to end-4Q23.
Expecting a sequential improvement in revenue and a better 2H24 vs 1H24.
- - Read this at SGinvestors.io -
- Based on customers’ feedback, Venture Corp is starting to see demand strengthening in several technology domains for the rest of 2024. This observation is in line with our view of a more significant recovery for the downstream players in 2H24/end-2024.
Data centres a key growth area.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-05-06
Read also DBS's most recent report:
2024-11-11 Venture Corporation - Recovery Delayed, Not Derailed.
Price targets by 3 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
