Venture Corporation Limited (SGX: V03): FY2026 First Quarter Business Update

On 5 May 2026, Venture Corporation Limited (&ldquo Venture&rdquo ) released their first quarter business update for FY2026. Although Venture reported a quarter-on-quarter decrease in revenue and earnings per share, the results are likely due to seasonal cycles, with improvements on a year-on-year basis. Operationally, management reported an expanding pipeline of new product mandates within the data center and life sciences segments, while R& D in the consumer division has transitioned into joint collaborative technology development. There were no other significant changes to the company&rsquo s fundamental operations and financial position during the quarter.

Disclaimer: Not financial advice. This content is provided for general informational purposes only and does not constitute financial, investment, legal, or tax advice. The information presented is based on publicly available data and estimates that may be subject to change without notice. It does not take into account your individual financial situation, investment objectives, risk tolerance, or specific needs.

Website: General Announcement::Business Update For 1Q 2026

Photo source: https://www.theedgesingapore.com/capital/insider-moves/venture-corp-ghy-and-kim-heng-focus

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Financial Highlights

Revenue

Metrics	Current	Previous
Revenue	-2.6%	+2.9%
Rating	Unfavourable	Favourable

The revenue metric will be assessed on a quarterly basis given the information available from the business updates.

For Venture, revenue disclosed are as follows:

• 1st Quarter of FY2026: SGD628 million
• 4th Quarter of FY2025: SGD645 million
• 3rd Quarter of FY2025: SGD627 million
• 2nd Quarter of FY2025: SGD645 million

Revenue for the 1st quarter of FY2026 has decreased by 2.6% to SGD628 million. Management did not provide an analysis for the decrease, though noted that it may be due to typical first quarter seasonality as the revenue on a year-on-year basis increased. The metric shifted towards Unfavourable.

Earnings Per Share

Metrics	Current	Previous
Earnings per share	-3.5%	+5.2%
Rating	Unfavourable	Favourable

The earnings per share metric will be assessed on a quarterly basis given the information available from the business updates.

For Venture, earnings per share disclosed are as follows:

• 1st Quarter of FY2026: 19.5 Singapore cents per share
• 4th Quarter of FY2025: 20.2 Singapore cents per share
• 3rd Quarter of FY2025: 19.2 Singapore cents per share
• 2nd Quarter of FY2025: 19.8 Singapore cents per share

Earnings per share for the 1st quarter of FY2026 has decreased by 3.5% to SGD0.195 per share. The decrease is more than proportionate than the decrease in revenue, though noted that the Group&rsquo s net profit margin remained consistent at 9.0%. The metric shifted towards Unfavourable.

Operating Cash Flows

Metrics	Current	Previous
Operating Cash Flows	No Update	+55.5%
Rating	Favourable	Favourable

The operating cash flows metric will be assessed on a quarterly basis given the information available from the business updates.

Based on the announcement on 5 May 2026, no detailed breakdown of the operating cash flows was provided in the business update for the first quarter of FY2026.

For Venture, operating cash flows will be as follows:

• 4th Quarter of FY2025: SGD61.9 million
• 3rd Quarter of FY2025: SGD39.8 million
• 2nd Quarter of FY2025: SGD94.4 million
• 1st Quarter of FY2025: SGD55.4 million

The metric was Favourable in the previous quarter as cash flow generated from operations for the 4th quarter of FY2025 has increased by 55.5% to SGD61.9 million.

Gearing Ratio

Metrics	Current	Previous
Gearing Ratio	No Update	22.3%
Rating	Favourable	Favourable

The gearing ratio metric will be assessed on a half yearly basis given the information available from the business updates.

Based on the announcement on 5 May 2026, no detailed breakdown of the financial position to determine the gearing ratio was provided in the business update for the first quarter of FY2026.

The metric was Favourable in the previous quarter as gearing ratio as of 31 December 2025 stands at 22.3%. This was computed using total assets of SGD3,602 million and total liabilities of SGD804 million.

Interest Coverage

Metrics	Current	Previous
Interest Coverage	No Update	290.3x
Rating	Favourable	Favourable

The interest coverage metric will be assessed on a half yearly basis given the information available from the business updates.

Based on the announcement on 5 May 2026, no detailed breakdown of the financial results to determine the interest coverage was provided in the business update for the first quarter of FY2026.

The metric was Favourable in the previous quarter as interest coverage as of 31 December 2025 stands at 290.3 times. This was computed using profit before tax of SGD284 million and interest expense of SGD0.983 million.

The Group&rsquo s exceptional interest coverage ratio is a direct function of its unleveraged balance sheet. By maintaining a zero-debt capital structure, Venture has effectively eliminated financing risk and interest expense volatility. This &lsquo fortress&rsquo balance sheet provides significant financial flexibility, allowing the Group to self-fund strategic expenditures without diluting shareholder equity or relying on external credit markets. In an era of macroeconomic uncertainty, this lack of gearing serves as a critical defensive moat, ensuring that operating cash flows are fully available for progressive distribution and opportunistic reinvestment.

Price-To-Book ratio

Metrics	Current	Previous
Price to Book Ratio	1.77	1.62
Rating	Unfavourable	Unfavourable

The price to book ratio metric will be assessed on a quarterly basis. Although the information on net asset value is only available from the business updates on a half yearly basis, the most recent share price is available on a daily basis.

Based on the announcement on 5 May 2026, net asset value (&ldquo NAV&rdquo ) was not included in the business update for the first quarter of FY2026.

Price-to-book (&ldquo P/B&rdquo ) ratio has become more expensive at 1.77. This is computed using the closing share price of SGD17.17 per share as of 19 June 2026 and net asset value of the Group of SGD9.71 per share as of 31 December 2025. The metric remains Unfavourable as investors will be paying a significant premium for its book value.

Venture&rsquo s distribution profile remains highly sustainable, as demonstrated by a dividend payout ratio consistently below earnings per share over the preceding quarters. This disciplined capital allocation ensures that the Group&rsquo s core earnings not only fully cover the annual distribution but also allow for significant retained earnings. Consequently, this surplus capital continues to drive an accretive trend in net asset value, strengthening the Group&rsquo s book value and providing a robust buffer for future growth initiatives.

As of 31 December 2025, Venture maintains an exceptionally liquid capital structure, characterized by a cash position of SGD1,283 million and a total absence of interest-bearing debt. On a per-share basis, this translates to a net cash backing of SGD4.44 per share, representing a significant portion of the Group&rsquo s current market capitalization.

As of 19 June 2026, the Market Capitalization is approximately SGD4,937 million.

Website: Yahoo Finance: Venture Corporation Limited (V03.SI)

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Dividend

Year	Yield	Total
2026	2.91%	SGD 0.500
2025	4.66%	SGD 0.800
2024	4.37%	SGD 0.750
2023	4.37%	SGD 0.750
2022	4.37%	SGD 0.750

Extracted from Dividends.sg

Although the Group does not have a formal dividend policy, it strives to pay dividends that are on par or higher than the previous year. Since FY2018, the Group has paid interim and final dividends. Barring unforeseen circumstances, the Group aims to declare dividends at sustainable rates.

Venture distributed a one-off special dividend of SGD0.050 per share in September 2025. For modelling purposes, the distribution of SGD0.750 per share will be used as a conservative benchmark for future period projections. This figure represents the recurring core distribution base.

With a closing share price of SGD17.17 per share as of 19 June 2026, this translates to a dividend yield of 4.37%. For my benchmark, a general reasonable yield would be around 4.75%. Venture&rsquo s dividend yield is below my benchmark and is Unfavourable.

Website: Reasonable Dividend Yield 2026Q2 &ndash 4.75%

If using dividend yield of 5.75% as a benchmark, based on the dividend of SGD0.750 per share there is potential for Venture to see its share price drop by 24.0% to SGD13.04 per share.

Yield	Share Price	Downside
Current	17.17	&ndash
5.75%	13.04	-24.0%
6.75%	11.11	-35.3%

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Summary

Metrics	Financials	Rating
Revenue	-2.6%	Unfavourable
Earnings per share	-3.5%	Unfavourable
Operating Cash Flows	No Update	Favourable
Gearing ratio	No Update	Favourable
Interest coverage	No Update	Favourable
Price to Book Ratio	1.77	Unfavourable
Overall		Neutral

Overall, Venture metrics shifted towards Neutral. For a final look at the overarching strategy, I recommend a quick reread of the summary and overall outlook provided in the opening paragraphs.

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Background

Established in 1989, Venture is a leading provider of technology services, products and solutions to over 100 global brands across the world. Headquartered in Singapore, they harness the collective strengths of their 12,000-strong team globally in differentiated capabilities spanning R& D, product industrialization, advanced manufacturing, supply chain solutions and product lifecycle management.

Over the years, they have built in-depth knowledge and differentiated capabilities in numerous technology domains. These include Life Science and MedTech Lifestyle and Wellness Smart Industrial Test Measurement and Instrumentation NextGen Communications and other breakthrough technologies.

With more than 5,000 products and solutions and over three decades of experience in advanced manufacturing technology, they will continue to expand into new technology domains through its collaborations with their customers and partners in selected ecosystems of interest.

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