- Venture Corp's FY24 results were below expectations. Revenue and PATMI were 96% of expectations.
- 4Q24 net profit declined 9.2% y-o-y to S$61.2mil as revenue contracted 10.1% y-o-y. Earnings are at 8-year lows. Dividend of 75 cents was maintained at a record payout ratio of 89% (FY23: 81%).
- - Read this at SGinvestors.io -
- Proposed cuts in the US National Institute of Health budget will curtail spending on life science equipment from research institutes and labs.
- We lower our FY25e revenue and PATMI forecast for Venture Corp by 12% and 10%, respectively.
The Positive
Spewing out cash.
- - Read this at SGinvestors.io -
- Another driver of FCF is the slowdown in CAPEX after the completion of the new plant in Penang.
- Venture Corp maintains a dividend of 75 cents and represents a record dividend payout ratio of 89% in FY24. The company ended FY24 with net cash of S$1.3bn (FY23: S$1.0bn). See Venture Corp's dividend payout dates.
The Negative
Limited growth drivers.
- Read more at SGinvestors.io.
