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Venture Corp started at 'buy' with $17.68 target by Phillip; CGS-CIMB keeps 'buy'

SINGAPORE (Sept 30): Phillip Securities Research is initiating coverage of Venture Corporation with a “buy” and a target price of $17.68.

Venture is currently trading at 13x earnings. Phillip says this is attractive because, over the last 10 years, the stock typically trades at a PE range of 16x.

“Venture also boast a superior return on equity, profit margin and debt to equity ratio relative to its US listed peers,” says Phillip analyst Alvin Chia in a Monday report.

Will Venture Corp take another hit as customer guides for lower growth?

SINGAPORE (July 15): Shares in electronics manufacturer Venture Corporation have fallen a long way since April last year, when it dived spectacularly after a steady two-year climb.

Venture’s stock price broke through a previous high of $10.00 in January 2017, and streaked to a dizzying height of $28.82 in early April 2018 – threatening to break the psychological level of $30.00.

And then it all crumbled.

V-shaped recovery needed by Venture to regain investor confidence: CGS-CIMB

SINGAPORE (Feb 12): Venture Corp will need to deliver on its guidance of a V-shaped recovery in 4Q18 to regain investors’ confidence given the unexpected earnings miss in 3Q18, says CIMB-CGS Securities.

CIMB-CGS currently estimates 4Q18 net profit of $100.7 million, down 29.6% y-o-y. As at Feb 8, consensus expectations are for 4Q18 net profit of $99.9 million, down 30.2% y-o-y. Venture will report after the market closes on Feb 22.

Ending 2017 with lumps of coal? Fret not, these may turn into diamonds in 2018

SAN FRANCISCO (Dec 22): Investors saddled in 2017 with the market’s worst performers, including Under Armour and General Electric, may do well to remember as December draws to an end that lumps of coal sometimes turn into diamonds.

As investment advisors rebalance clients’ portfolios in the final weeks of the year, the instinct to dump stocks that have been left behind in surging markets - or that fall out of favour with analysts - can be self-destructive.

Venture Corp a ‘buy’ on broad-based growth

SINGAPORE (May 2): Maybank Kim Eng is maintaining its “buy” call on Venture Corp after its 1Q results came in above expectations, where net profit rose 36% on-year in a very strong start to the year.

1Q17 net profit accounted for 23% of Maybank’s previous full-year forecast. Historically, 1Q is Venture’s lowest quarter of the year at less than 20% of full-year results.

Maybank has therefore lifted its target price by 16% to $13.35 following upward revisions to EPS estimates in FY17/18/19.

CWG, the former Chiwayland, sees 3Q net loss widen to $11.6 mil

SINGAPORE (Nov 7): CWG International, formerly known as Chiwayland International, saw 3Q16 net loss widen more than eight-fold to RMB 56.6 million ($11.6 million) from a loss of RMB 6.4 million in 3Q15.

For the quarter to Sept, revenue declined 79% to RMB 118.1 million after fewer units of apartments were handed over to customers as there were no project completions.

The group sold an aggregate gross floor area of 11,700 sqm during the quarter, which comprised units from the inventory of existing projects completed earlier, compared with the 109,500 sqm sold a year ago.

What could lead to even more orders for Venture?

SINGAPORE (Oct 14): Many customers of Venture Corp are large MNCs. Now and then, there may be merger and merger (M&A) deal involving one of its customers. This can be beneficial to the tech manufacturer too.  

UOB Kay Hian analyst Jonathan Koh sees opportunities arising from the M&A activities of several Venture customers.

For instance, NYSE-listed Danaher acquired air and water filter manufacturer Pall in a US$13.8 billion ($19.1 billion) deal that aims to help Danaher tap the fast-growing demand from the biotechnology industry.

It's business as usual for this tech company after Brexit

SINGAPORE (July 18): UOB Kay Hian is maintaining its “buy” call for Venture Corporation with a raised target price of $9.82, from $9.25 previously.

UOB Kay Hian’s analyst, Jonathan Koh, noted that Venture’s order flows saw little impact from the Brexit referendum, even though its customers have become more cautious and restrained. As Koh explains, Venture’s customers had “already toned down their expectations during the market turmoil during January and February and were well aware of potential repercussions from Brexit”.

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