SINGAPORE (Aug 7): Shares in Venture Corp are up 91 cents to $14.76 on Monday morning.

This means the stock has overshot RHB’s 12-month target price of $14.70 in a report out today.

The rating follows Friday’s results announcement that the group has put in a stellar performance in 2Q17 and 1H17 despite a tough macroeconomic outlook.

In 2Q17, the group posted a record high revenue of $1.01 billion, a 48.3% increase y-o-y.

This was attributed to the high receptivity of customers as the products launched in the previous quarters have exceeded the company’s expectations.

See: Venture Corp posts 61% rise in 2Q earnings to $69.8 mil on higher revenue

In the Monday report, RHB analyst Jarick Seet says, “Going forward, we believe that Venture would likely continue to improve its margins in the remaining quarters of FY17F as shown in 2Q17.”

According to the analyst, this will be achieved through a shift in revenue mix to higher margin projects and the continued strive in operational efficiencies across its value chain to lower costs.

“However, with the superb 1H17, we think that the dividends given would likely be raised to reward shareholders if such a performance can continue,” says Seet.

The group’s Medical, Life Science and Test & Measurement segments continue to be its pillars of growth and has shown high receptivity among customers.

Although growth in this segment might be slower due to a larger base effect, the analyst continues to remain positive throughout the year as the company secures demand from new and existing customers.

“With the continued value creation coupled with new major product launches ahead in 4Q17F, we expect this positive momentum to likely continue into 3Q17F,” says Seet.