- We stay positive on Venture Corp on its recovery into FY25F, despite 2Q24 earnings trailing our estimates. Destocking continues to taper and improve in some customer domains, and we expect customer orders to build up into FY25F.
- - Read this at SGinvestors.io -
2Q24 slightly below.
- Venture Corp (SGX:V03)'s 2Q24 sequentially improved as revenue was S$717m (+7.6% q-o-q, -6% y-o-y) while earnings came in at S$63m (+6% q-o-q, -4% y-o-y), slightly below expectations. Both revenue and earnings, as well as y-o-y percentage decline, improved from 1Q24.
- Revenue was driven by advanced industrial technology, semiconductor-related products & modules, test & measurement instrumentation, and networking & communications domains. The customer destocking situation continues to improve, with some nearing the tail-end of destocking. Hence, we anticipate that orders will ramp up from 2H24 into FY25F, driving FY25F growth. Otherwise, net margins were in line at 8.9%.
- - Read this at SGinvestors.io -
Trim FY24-26F earnings by 4%.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-08-07
Read also RHB's most recent report:
2024-11-11 Venture Corporation - Soft Demand Delaying 2H Recovery; Maintain BUY.
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
