Venture Corp (SGX:V03) reported revenues of S$666.7m and NPAT of S$60.1m, slightly below our estimate of S$64m as we were expecting a weaker 1Q24. However, management is bullish on its prospects ahead and expects 2Q24 to be better than 1Q24, while it also expects 2H24E to be better than 1H24E.
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Softer demand and destocking weighs on 1Q
Venture Corp's 1Q24 revenue dropped 18.9% y-o-y to S$666.7m while NPAT decreased by 18.3% y-o-y to S$60.1m. This is mainly due to weaker demand amid some headwinds which have begun to taper off.
Life science and certain segments of the network and communications market also faced some destocking which contributed to weaker demand.
Better quarters ahead
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It also remains confident of maintaining net margins of between 8-10% for FY24E and continues to see significant growth opportunities in eco-systems like life sciences, test & measurement instrumentation, hyperscale data centres, semi-conductor equipment, advanced industrial, networking & communications and luxury lifestyle and wellness domains.
Stable, gradual recovery
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
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