- Upgrade Venture Corp (SGX:V03) to BUY from HOLD due to a better outlook. 1H25 NPAT of S$113m beat our estimate by 23%. A special interim dividend of S$0.05 was declared, bringing potential FY25 dividend to S$0.80 (6.3% yield).
- - Read this at SGinvestors.io -
Margins likely to remain stable
- With declining revenue, Venture Corp will be facing an uphill task to maintain margins. Management will focus on investing in R&D to improve its technology and production yield, which would help increase margins.
- Net margins of 8.5-8.9% are likely to be sustainable.
Actively seeking new customers and products
- - Read this at SGinvestors.io -
- Venture Corp has been gaining momentum in business wins across multiple technology domains and remains cautiously optimistic this will continue.
Special dividend shows confidence (6.3% yield)
- Read more at SGinvestors.io.
