Venture Corp's 1Q25 group revenue declined 7.5% y-o-y to S$616.6mil, with weakness concentrated in the lifestyle consumer technology domain.
The decline stemmed from product design improvements that enhanced durability, thereby reducing replacement cycles. Excluding this segment, the group would have recorded y-o-y revenue growth, highlighting strength in other verticals.
1Q25 revenue and earnings below expectations
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Overall, Venture Corp's 1Q25 revenue and net profit accounted for 22% of our full year forecasts, below expectations.
Expect lifestyle consumer domain headwinds to persist.
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Venture Corp's ongoing production of a new, more durable key product for a major customer has significantly reduced the need for frequent part replacements, while the older, higher-turnover model is being phased out. This transition is likely to result in a prolonged period of softer demand within this segment. However, the impact may be partially offset by the introduction of a new product line slated for launch in 2026, which could rejuvenate segment performance and support a gradual recovery in volumes.
Opportunities to gain market share for some domains.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
