- We like Venture Corp (SGX:V03) for its differentiating solutions strategy that will drive long-term growth. We expect higher-value solutions with customer stickiness to drive more orders and better margins.
- - Read this at SGinvestors.io -
3Q25 earnings broadly in line.
- 3Q25 revenue was S$627m (9% y-o-y, -2.8% q-o-q). Net profit was S$56m (-8% y-o-y) – largely within our expectations. The sequential revenue decline stemmed from the weakening US$ against S$. Revenue was flat (-0.6% q-o-q) on a constant currency basis.
- - Read this at SGinvestors.io -
Differentiating solutions position VMS for long-term growth.
- We believe Venture Corp’s differentiated strategy to increase value creation, especially in R&D participation with customers, will enable better margins and further sales to other customers. Its integrated manufacturing between Singapore, Malaysia, and China to minimise cost, including import tariffs into the US market for customers, has won new clients and increased market share with existing clients. These factors add to customer stickiness and should help Venture Corp scale over the longer term. We expect growth to accelerate from FY26F.
- Activities for network connectivity solutions in hyperscale data centres (DC) are ramping up. NPIs are rolling out in the life sciences domain. There were new programme wins, new businesses secured, and higher market share with customers in the test & measurement instrumentation, semiconductor-related equipment, and building automation & security domains.
- Immediate quarters should not accelerate significantly, but orders should pick up from FY26F on NPI rollouts and mass orders in the consumer lifestyle and networking & communication (for hyperscale DC) domains.
Raise target price and earnings on better outlook.
- Read more at SGinvestors.io.
