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another quarter of lower earnings
disappointing is the word
disappointing is the word
QoQ numbers suggest 2024 will be a stronger year. As does the performance of peer stocks elsewhere around the world.
$1B record net cash in a high interest rate environment. Maintained dividends. Buybacks continue. Reasonable valuations. Feeling confident and comfortable with buying more at this point.
wait4opp ( Date: 24-Feb-2024 01:37) Posted:
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selling will continue next week as a result of the lower earnings
dyodd
dyodd
Today SBB will boost investors confidence.
Dyodd
Dyodd
Venture H2 net profit falls by a third on lower revenueFor the full year, Venture&rsquo s revenue fell 21.7 per cent to S$3 billion. Meanwhile, net profit slipped 26.9 per cent to S$270 million.VENTURE Corp reported on Thursday (Feb 22) a 33.4 per cent decline in net profit for the second half, on the back of lower revenue.Net profit for the six months ended Dec 31, 2023 fell to S$130 million, down from S$195.3 million in the year-earlier period. On a per share basis, earnings slipped to S$0.447 in H2 FY23, from S$0.671 the previous year.A final dividend of S$0.50 per share was proposed, unchanged from a year earlier. Including the interim dividend of S$0.25, which was paid in September, total dividend for FY2023 will amount to S$0.75 per share. The full year dividend has remained at this level since FY2020.Revenue for H2 fell 30.2 per cent on year to S$1.4 billion. The group said the lower revenue year on year (yoy), against a high base the previous year, was mainly attributable to softening demand across its technology domains and customers&rsquo inventory destocking.For the full year, Venture&rsquo s revenue fell 21.7 per cent to S$3 billion. Meanwhile, net profit slipped 26.9 per cent to S$270 million.In terms of outlook, Venture : V03 +0.43% said feedback from customers indicated that demand would be stronger in H2 2024 compared to H1.&ldquo Venture is expanding our participation in our customers&rsquo products by providing more services across the design, sourcing, manufacturing and supply chain management process. We are also creating advanced modules that help improve product performance, generating outstanding value for our customers,&rdquo the group said.Net asset value per share was unchanged yoy, amounting to S$9.758 as at Dec 31, 2023. The group noted its balance sheet remained strong, with a net cash position of around S$1.1 billion.
Looks like Venture has turned the corner and is past the worst.
No surprises from Ventures FY2023 earnings analysts raise target prices on brighter outlook
Analysts have largely kept their calls on Venture Corp, following the manufacturers FY2023 earnings that did not turn up surprises.
Despite lower earnings, the company is maintaining its final dividend at 50 cents, bringing the full-year payout to 75 cents, implying a yield of 5.3%.
In his Feb 23 note, Maybank Securities Jarick Seet, citing the management, flags that the second half of the current FY2024 should be stronger than the current half ending June, as the production of new products commences.
Venture is also confident it can maintain net margins at between 8 and 10% for FY2024.
The company continues to see significant growth opportunities in ecosystems such as life sciences, test and measure instrumentation, hyperscale data centres, semiconductor equipment, advanced industrial, networking & communications.
In the current 1QFY2024, Venture has also started new products in the luxury lifestyle and wellness domains.
Even as Seet has kept his BUY call, he has slightly raised his target price to $15.80 from $15.50, pegged to an unchanged 16x forward FY2024 earnings, to take into account revised earnings estimates.
John Cheong and Heidi Mo of UOB Kay Hian, on their part, have maintained their BUY call and $16.37 target price on the stock.
They note that Venture is actively expanding the range of services it can provide, to include also design, sourcing and supply chain management.
This will deepen collaboration with many of Ventures class-leading customers, state Cheong and Mo in their Feb 23 note.
William Tng of CGS International calls the company a free cash flow generator, citing how it now has no borrowings, sits on a record cash hoard of $1.06 billion while free cash flow similarly hit a record $473.9 million.
Similarly to Seet, Tng has slightly raised his target price to $15.93 from $15.90, after he projects higher earnings per share to take into account a smaller share base following a series of share buybacks. His valuation multiple is kept at 14.6x.
Ling Lee Keng of DBS Group Research is more bullish than her peers.
In her Feb 23 note, she flags how Venture is on the path to recovery and with its diversified product mix and blue-chip customer base, Venture is in a sweet spot to capture new opportunities in emerging technology domains.
With an eye on the longer term, Venture continues to invest and develop new differentiating capabilities across multiple technology domains to pave the way for future growth, she adds.
From her perspective, the strong cash balance will come in useful when Venture wants to capture new opportunities for its next growth phase.
Her new target price of $16.90, from $15.10 previously, is based on 16x FY2024 earnings, which, thanks to the improving outlook, is a higher multiple versus 14x accorded previously.
Analysts have largely kept their calls on Venture Corp, following the manufacturers FY2023 earnings that did not turn up surprises.
Despite lower earnings, the company is maintaining its final dividend at 50 cents, bringing the full-year payout to 75 cents, implying a yield of 5.3%.
In his Feb 23 note, Maybank Securities Jarick Seet, citing the management, flags that the second half of the current FY2024 should be stronger than the current half ending June, as the production of new products commences.
Venture is also confident it can maintain net margins at between 8 and 10% for FY2024.
The company continues to see significant growth opportunities in ecosystems such as life sciences, test and measure instrumentation, hyperscale data centres, semiconductor equipment, advanced industrial, networking & communications.
In the current 1QFY2024, Venture has also started new products in the luxury lifestyle and wellness domains.
Even as Seet has kept his BUY call, he has slightly raised his target price to $15.80 from $15.50, pegged to an unchanged 16x forward FY2024 earnings, to take into account revised earnings estimates.
John Cheong and Heidi Mo of UOB Kay Hian, on their part, have maintained their BUY call and $16.37 target price on the stock.
They note that Venture is actively expanding the range of services it can provide, to include also design, sourcing and supply chain management.
This will deepen collaboration with many of Ventures class-leading customers, state Cheong and Mo in their Feb 23 note.
William Tng of CGS International calls the company a free cash flow generator, citing how it now has no borrowings, sits on a record cash hoard of $1.06 billion while free cash flow similarly hit a record $473.9 million.
Similarly to Seet, Tng has slightly raised his target price to $15.93 from $15.90, after he projects higher earnings per share to take into account a smaller share base following a series of share buybacks. His valuation multiple is kept at 14.6x.
Ling Lee Keng of DBS Group Research is more bullish than her peers.
In her Feb 23 note, she flags how Venture is on the path to recovery and with its diversified product mix and blue-chip customer base, Venture is in a sweet spot to capture new opportunities in emerging technology domains.
With an eye on the longer term, Venture continues to invest and develop new differentiating capabilities across multiple technology domains to pave the way for future growth, she adds.
From her perspective, the strong cash balance will come in useful when Venture wants to capture new opportunities for its next growth phase.
Her new target price of $16.90, from $15.10 previously, is based on 16x FY2024 earnings, which, thanks to the improving outlook, is a higher multiple versus 14x accorded previously.
Stock exchange is not set up to make majority rich else who wants to work for the richie rich...is better that majority are middle or lower class and keep running on that mill to make the rich even richer...LOL
This sick exchange we call ourselves financial center, the minister in charge got dignity to face citizens and other world leaders lol....
If this is a US company, it would have gone up 5-10%
MambaFinancial89 ( Date: 23-Feb-2024 10:40) Posted:
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Net profit plunged 31% y-o-y + weak guidance.....
Asdfgh101 ( Date: 22-Feb-2024 22:15) Posted:
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Despite Nasdaq impressive performance, Venture is down.
wait4opp ( Date: 23-Feb-2024 01:36) Posted:
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On the path to recovery - Venture Corp (DBS Report)
- FY23 results in line commendable net margin of 8.9% despite high inflationary pressure
- Foray into data centre ecosystem riding on the AI wave
- Stronger 2H24 vs. 1H24 expected 1Q24 may be weaker both y-o-y and q-o-q
- No change in estimates maintain BUY with higher TP of S$16.90. Valuations still attractive despite recent run-up
FY23 results in line commendable margins despite challenging environment
FY23 results in line. 4Q23 net profit came in at S$66.7m (-31.9% y-o-y, +5.3% q-o-q) while revenue declined 29.5% y-o-y (+4.3% q-o-q). FY23 revenue was registered at S$3,025.0m, down 21.7% y-o-y, due to softer demand across its technology domains as well as customers&rsquo inventory destocking. Net profit saw a 26.9% y-o-y drop to S$270.0m. Overall, FY23 revenue and net profit were in line with our expectations.
A 50Scts DPS was declared, similar to last year.
Commendable net margin of 8.9% for FY23 despite high inflationary pressure coupled with lower revenue. 4Q23 net margin improved further to 9.1% (from 9.0% in 3Q23 and 8.7% in 2Q23). FY23&rsquo s net margin of 8.9% was lower than the 9.6% in FY22. Nevertheless, it is still commendable given the high inflationary environment in FY23, coupled with lower revenue.
Strong NPI pipeline ahead. The new product introductions (NPIs) pipeline straddled across most domains, including the wellness and premium consumer space, industrial medical life science, test & measurements, power control, and semiconductor. With the gradual recovery of global economies, customers are now more ready to launch new products.
Foray into the data centre ecosystem, riding on the AI wave. The consistent push towards AI innovation, coupled with the proliferation of generative AI, has fuelled the growth of advanced servers and equipment. Given Venture&rsquo s strength in a diversified technology domain &ndash including network & communications, security & safety, industrial IOT, computing & productivity systems and semiconductor &ndash the group is able to ride on this trend, working with several data centre players to provide different forms of services. Venture has already been in this space for the past two to three years, and this offers a great opportunity for the group to grow further. Venture has also seen an increase in the number of customers in the semiconductor space, a key focus area for generative AI.
Healthy net cash position exceeding S$1bn. Venture continues to maintain a healthy balance sheet, with a net cash position of S$1.056bn (c.26% of current market cap) as of 31 December 2023, up 30% from a year ago. The group has zero debt, which stacks well against its peers in the net debt position, especially in the current high interest rate environment. Besides utilizing the cash for dividend payment and potential M& As, the group has also established a share buyback programme in November 2023 to purchase up to 10 million shares.
A stronger 2H24 vs. 1H24 expected 1Q24 could be weaker y-o-y and q-o-q. Based on customer feedback, demand schedule will be stronger in 2H24 compared to 1H24. Hence, 1Q24 could be weak both on y-o-y and q-o-q bases, given that 1Q23 was still relatively strong, benefitting from some demand flow from the strong FY22. This observation is in line with our view for a more significant recovery for the downstream players in 2H24.
No change in estimates, maintain BUY with higher TP of S$16.90.
Valuations still attractive despite recent run-up.
The share price has gained c.24% from its low in end-October &lsquo 23. Despite this, valuations are still very attractive, with a current PE of about 13x, below -1SD level from its five-year average. We believe there is further room to re-rate to at least the average PE level of c.16x, on the improving outlook. Our TP is raised to S$16.90 (previously S$15.10), pegged to 16x on FY24F earnings. Maintain BUY
- FY23 results in line commendable net margin of 8.9% despite high inflationary pressure
- Foray into data centre ecosystem riding on the AI wave
- Stronger 2H24 vs. 1H24 expected 1Q24 may be weaker both y-o-y and q-o-q
- No change in estimates maintain BUY with higher TP of S$16.90. Valuations still attractive despite recent run-up
FY23 results in line commendable margins despite challenging environment
FY23 results in line. 4Q23 net profit came in at S$66.7m (-31.9% y-o-y, +5.3% q-o-q) while revenue declined 29.5% y-o-y (+4.3% q-o-q). FY23 revenue was registered at S$3,025.0m, down 21.7% y-o-y, due to softer demand across its technology domains as well as customers&rsquo inventory destocking. Net profit saw a 26.9% y-o-y drop to S$270.0m. Overall, FY23 revenue and net profit were in line with our expectations.
A 50Scts DPS was declared, similar to last year.
Commendable net margin of 8.9% for FY23 despite high inflationary pressure coupled with lower revenue. 4Q23 net margin improved further to 9.1% (from 9.0% in 3Q23 and 8.7% in 2Q23). FY23&rsquo s net margin of 8.9% was lower than the 9.6% in FY22. Nevertheless, it is still commendable given the high inflationary environment in FY23, coupled with lower revenue.
Strong NPI pipeline ahead. The new product introductions (NPIs) pipeline straddled across most domains, including the wellness and premium consumer space, industrial medical life science, test & measurements, power control, and semiconductor. With the gradual recovery of global economies, customers are now more ready to launch new products.
Foray into the data centre ecosystem, riding on the AI wave. The consistent push towards AI innovation, coupled with the proliferation of generative AI, has fuelled the growth of advanced servers and equipment. Given Venture&rsquo s strength in a diversified technology domain &ndash including network & communications, security & safety, industrial IOT, computing & productivity systems and semiconductor &ndash the group is able to ride on this trend, working with several data centre players to provide different forms of services. Venture has already been in this space for the past two to three years, and this offers a great opportunity for the group to grow further. Venture has also seen an increase in the number of customers in the semiconductor space, a key focus area for generative AI.
Healthy net cash position exceeding S$1bn. Venture continues to maintain a healthy balance sheet, with a net cash position of S$1.056bn (c.26% of current market cap) as of 31 December 2023, up 30% from a year ago. The group has zero debt, which stacks well against its peers in the net debt position, especially in the current high interest rate environment. Besides utilizing the cash for dividend payment and potential M& As, the group has also established a share buyback programme in November 2023 to purchase up to 10 million shares.
A stronger 2H24 vs. 1H24 expected 1Q24 could be weaker y-o-y and q-o-q. Based on customer feedback, demand schedule will be stronger in 2H24 compared to 1H24. Hence, 1Q24 could be weak both on y-o-y and q-o-q bases, given that 1Q23 was still relatively strong, benefitting from some demand flow from the strong FY22. This observation is in line with our view for a more significant recovery for the downstream players in 2H24.
No change in estimates, maintain BUY with higher TP of S$16.90.
Valuations still attractive despite recent run-up.
The share price has gained c.24% from its low in end-October &lsquo 23. Despite this, valuations are still very attractive, with a current PE of about 13x, below -1SD level from its five-year average. We believe there is further room to re-rate to at least the average PE level of c.16x, on the improving outlook. Our TP is raised to S$16.90 (previously S$15.10), pegged to 16x on FY24F earnings. Maintain BUY
Results above Analyst expectations!
Tmr should jump at least 50cents
DYODD
Tmr should jump at least 50cents
DYODD
Confirm plunging
Is it good news or bad news for Venture? Will it plunge tomorrow like what happened to Sq n Uob?
spursfan ( Date: 22-Feb-2024 17:32) Posted:
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Press Release
VENTURE ANNOUNCES FY2023 REVENUE EXCEEDING S$3 BILLION AND NET PROFIT OF S$270 MILLION
- Net cash position surpassed S$1 billion
- Proposes final dividend of 50 cents per share, bringing total dividends for FY2023 to 75 cents per share.....
https://links.sgx.com/1.0.0/corporate-announcements/87LKW7RJGIXK84GG/787305_FY2023_Press%20release.pdf
VENTURE ANNOUNCES FY2023 REVENUE EXCEEDING S$3 BILLION AND NET PROFIT OF S$270 MILLION
- Net cash position surpassed S$1 billion
- Proposes final dividend of 50 cents per share, bringing total dividends for FY2023 to 75 cents per share.....
https://links.sgx.com/1.0.0/corporate-announcements/87LKW7RJGIXK84GG/787305_FY2023_Press%20release.pdf
Ideally to pick up some when it retreat back a little from current level
that will be a better entry price
dyodd
that will be a better entry price
dyodd
Maybank raises Venture target price on higher order expectations
MAYBANK Securities has raised its target price for Venture Corporation : V03 -0.81% to S$15.50 from S$15.40, as it anticipates a rise in orders for the mainboard-listed manufacturer in FY2024.
In a report on Tuesday (Jan 30), Maybank analyst Jarick Seet estimated that mass production for some of Venture&rsquo s new production introductions likely started in the fourth quarter of 2023, with more slated in FY2024 for new and existing customers.
The mass production, coupled with signs of inventory depletion among Venture&rsquo s customers, could mean more orders in FY2024, he said, adding that this will likely lead to higher operating margins due to a rise in operating leverage.
Seet said that Maybank is now &ldquo more confident&rdquo that Q3 2023 was the bottom for the group, and that it expects growth in both revenue and profit after tax and minority interests (Patmi) in FY2024.
Maybank believes Venture will see a &ldquo gradual steady recovery&rdquo from FY2023, he added. The brokerage maintained its &ldquo buy&rdquo call on the counter.
&ldquo With a yield of 5.6 per cent, a strong balance sheet and an active share-buyback programme, we believe that Venture will likely be a safe haven for investors,&rdquo said Seet.
He noted that the group&rsquo s recent share buyback and cancellation of 10 million shares is a &ldquo strong indication&rdquo that management believes the stock is undervalued. &ldquo We expect earnings per share to be positively impacted as more shares are purchased after the blackout period.&rdquo
For FY2023, Maybank expects Venture to post full-year revenue of S$3 billion and Patmi of S$270 million. It also forecast that the group&rsquo s Q4 performance, to be released on Feb 22, will beat the previous quarter.
The brokerage raised its Patmi forecast by 1.2 per cent for FY2024, and by 3.8 per cent for FY2025, leading to the higher target price of S$15.50. This implies a potential upside of 20 per cent from the counter&rsquo s trading price of S$13.52 as at 12.32 pm on Wednesday.