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).
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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.
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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.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
