Venture Corporation has announced net profit of $65.3 million for the 1QFY2021 ended March, 8.3% higher than net profit of $60.3 million in the 1QFY2020.

Net margin rose 0.5 percentage points y-o-y to 9.5%.

Revenue increased 2.0% y-o-y to $686.7 million while profit before tax increased by 7.2% y-o-y to $75.0 million.

Despite the slight increase in revenue, the improved net margin and profitability was due to the shortage in parts and components around the world.

The group, as at March 31, reported a net cash position of $989.6 million.

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Its net asset value (NAV) per share stood at $9.19 at the end of the 1QFY2021, higher than NAV per share of $8.92 the year before.

The group says it expects q-o-q improvement in the 2QFY2021, and a stronger 1HFY2021 performance compared to the year before.

Orders from its customers are showing “broad-based strength” across its diverse technology domains.

“In the Life Science Technologies, Medtech Devices & Equipment, and Lifestyle & Wellness Consumer Technology domains, customers’ orders for several sophisticated, leading-edge products are coming in strong,” says the group in its business update on April 30.

“New products across the Instrumentation, Networking & Communications, Advanced Industrials and Advanced Semiconductor-related Equipment domains will be launched in response to the increasing needs for electronic test equipment, optical & photonics networking solutions and 5G infrastructure development,” it adds.

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While the group is seeing a strong pipeline of orders, it says it has “swiftly set up several working groups to implement comprehensive tactical plans” to mitigate the supply challenges in the subsequent quarters.

Shares in Venture closed 26 cents lower or 1.3% down at $20.15 on April 30.