Venture Corporation - RHB Research 2025-02-25: 2H24 Showing Recovery; Keep BUY

• We stay positive on Venture Corp (SGX:V03) on its recovery into FY25 as FY24 net profit was within our estimates. FY24 saw sequential 2H24 improvement over 1H24 in revenue with pick-up in Networking & Communications and Advanced Industrial Technology domains.
• - Read this at SGinvestors.io -

FY24 earnings in line.

• Venture Corp's FY24’s revenue was S$2,736m (-9.6% y-o-y) while net profit came in at S$245m (-9.3% y-o-y) – within our expectations.
• Revenue was dragged by soft demand, particularly from the Lifestyle Consumer domain. However, the majority of IT domains, particularly Networking & Communications and Advanced Industrial Technology saw sequential improvement in 2H24 vs 1H24, driven by:
  1. - Read this at SGinvestors.io -
  2. new product wins from customers who moved production from Canada and Mexico to Venture Corp’s Asia plants.
• The decline in Consumer Lifestyle domain saw products with longer battery life and better design reduced volume production for replacement sets that led to slower sales. Net margin was largely in line at 9%.

Full-year dividend of 75 cents.

• Read more at SGinvestors.io.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2025-02-25 SGinvestors.io

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