- Venture Corp reported 1Q25 NPAT of S$55.9m, higher than our estimate. With US tariffs cut to 10% for the rest of the world and 30% for China for 90 days, our earnings assumption have improved.
Target price lifted to S$10.60 – Maintain HOLD
- - Read this at SGinvestors.io -
- We maintain HOLD as the outlook remains uncertain due to a lack of visibility in the tariff landscape over the next year.
- We prefer Frencken (SGX:E28) due its brighter outlook.
Focus on improving technology and margins
- - Read this at SGinvestors.io -
- We believe that net margins of 9.1% may be lower if revenue continues to slide.
Tariff costs passed on to customers for now
- As for now, tariffs incurred have been passed on to Venture Corp’s customers. If global tariffs stay at 10%, there shouldn’t be an issue for Venture Corp. However if US tariffs on products from Malaysia increase, it could impact Venture Corp negatively as it would be hard for all costs to be absorbed by its customers.
Share buybacks; 6.7% dividend yield provides support
- Read more at SGinvestors.io.
