Venture Corporation - RHB Invest 2024-05-06: Customer Destocking Still Evident

Venture Corporation - Customer Destocking Still Evident

Venture Corp (SGX:V03) | SGinvestors.ioVenture Corp (SGX:V03)
  • We retain our view on Venture Corp on the continued customer destocking situation, albeit a tapering trend. Although there is no earnings change post Venture Corp’s 1Q24 results, we raise our Venture Corp target price slightly, rolling over our P/E valuation from 14x FY24F to a blended FY24F-25F earnings base.
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1Q24 in line.

  • Venture Corp (SGX:V03) reported 1Q24 revenue of S$667m (-19% y-o-y) and earnings of S$60m (-18% y-o-y).
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  • Cash flow generation remained strong, with net cash improving to S$1.2bn as at 31 Mar. This is also due to continued proactive working capital management and optimisation.
  • Venture Corp has guided for revenue to improve sequentially, with 2Q24’s topline to be better than 1Q24 and 2H24’s revenue to be higher than 1H24. We already have sequential revenue and earnings improvement baked into our forecasts.

Outlook priced in.

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Alfie Yeo RHB Securities Research | 2024-05-06

Previous report by RHB:
2024-02-26 Venture Corporation - Near-term Prospects Priced In; Downgrade To NEUTRAL.

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


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