Phillip Morris International (PMI)

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.

Venture's stellar performance could go up in smoke soon

SINGAPORE (July 5): Venture Corp’s stellar 2017 was driven by I Quit Ordinary Smoking (IQOS) smokeless cigarette devices.

But with IQOS production slowing down and shifting away to its competitor, Venture’s earnings are at risk of declining in 2018 and beyond, say analysts.

In a Thursday report, UOB KayHian analysis affirms its initial belief that the IQOS device that Venture manufactures for Phillip Morris International (PMI) made up close to 25% of 2017 revenue on an accounting basis.

Slower demand in Japan but Venture expects Europe, South Korea to pick up the slack

SINGAPORE (Apr 24): UOB Kay Hian is maintaining its “buy” call on Venture Corporation with a lower target price of $30.60.

In a Monday report, analyst Foo Zhi Wei says Venture's share price has largely overreacted to Phillip Morris International’s (PMI) slower 1Q18 growth of I Quit Ordinary Smoking (IQOS) e-cigarette products in its key market of Japan.

This was attributed to sales reaching an older segment of users in their 50s at a faster-than-expected rate, resulting in a slowdown in growth due to slower adoption.

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