Venture Corp (Venture)

Trump signals more uncertainty with 'what’s up here'; economists trim Singapore GDP forecast

SINGAPORE (June 17): US President Donald Trump is not letting up on his threats to hit China with a new set of tariffs as talks between the two economic giants show scant signs of progress. China, on the other hand, did not give a clear indication if President Xi Jinping will meet Trump at the G20 meeting on June 28 and 29 in Osaka, Japan.

Trump added further uncertainties to the trade talks. At a press conference on June 12, he declared that there was no deadline on when the talks should resume, other than “what’s up here”, pointing to his head.

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Small-cap tech companies the stocks to watch; Frencken riding industrial automation trend

SINGAPORE (June 10): Technology companies figured prominently in RHB Securities Singapore’s 20 Jewels 2019 Edition, with seven companies from this sector included in its list of small caps that are likely to do well.

RHB Securities had expected technology stocks to perform better this year after being hit badly in 2018. “Our house view is that the US and China will eventually come to a trade agreement, and since the trade war started, tech stocks, especially in the small-mid cap space, have been hammered down badly, more so in 2018,” says Jarick Seet, its head of small-mid caps.

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Right timing: Downwards drift continues despite oversold readings

SINGAPORE (May 24): The decline by Straits Times index slowed during the past five trading sessions.

Despite this, the index slipped below the 200-day moving average currently at 3,183.

At the same time, quarterly momentum has fallen below its equilibrium line and continues its decline.

ADX is rising, and the DIs remain negatively placed, confirming the weaker phase ahead.

Right timing: STI approaches resistance

SINGAPORE (May 4): The STI’s uptrend remains intact. However signs are emerging of fatigue. The index tested 3,400, a psychological resistance and retreated. In the meantime, short term stochastics has flattened along with 21-day RSI, setting the indicators up for forming a negative divergence between indicators and the index.

RHB stays 'neutral' on tech sector as it awaits trade deal conclusion

SINGAPORE (Mar 19): RHB Research is sticking to its bottom-up approach in the tech sector, focusing on key selection of stocks which have sound fundamentals and balance sheet as well as good growth despite the ongoing trade war issues.

This means RHB tries to identify the laggards -- those which have not yet been rerated or rerated less than its peers -- with the hope that these stocks might rerate when they deliver earnings growth, coupled with further positive news on the US-China trade deal.

Venture Corp reports 0.7% dip in FY18 to $370 mil on absence of one-off gain

SINGAPORE (Feb 24): Venture Corporation, the global provider of technology solutions, products and services, reported a 0.7% dip in FY18 earnings to $370.1 million from a year ago.

Excluding a one-off gain of $11.3 million from the disposal of an investment in an associate recorded in FY17, earnings for FY18 would have registered an increase of 2.4% year-on-year.

FY18 revenue came in at $3.48 billion, 13% lower y-o-y.

For the 4Q18 ended Dec, Venture recorded earnings of $107.7 million, 24.7% lower y-o-y.

Right timing: No Christmas cheer as STI moves in tight range

SINGAPORE (Dec 14): The Straits Times Index has been unable to gain strength as short term stochastics turned down, and quarterly momentum encountered resistance. The index eased and is now testing its declining 50-day moving average at 3,077.

Directional movement indicators are neutral. ADX is falling, and DIs are positively placed. The STI had moved above both its 50- and 100-day moving average temporarily during late November.

Venture kept at 'sell' by UOB on grimmer production outlook

SINGAPORE (Dec 6): UOB KayHian is maintaining Venture Corp at “sell” given increasing risk production share of IQOS (I quit ordinary smoking) devices could be shifted away to another contract manufacturer by Philip Morris which is seeking to improve economics.

In a Thursday report, analyst Foo Zhi Wei says UOB channel checks into the IQOS supply chain indicate that the second manufacturer, Flex has reached the supplier concentration limit for Philip Morris although UOB was not able to ascertain as to whether Venture has similarly hit a production ceiling.

Venture kept at 'add' by CGS-CIMB on long-term prospects

SINGAPORE (Nov 27): CGS-CIMB Securities is maintaining Venture Corp at “add” given its long-term prospects after hosting an non-deal roadshow for the latter on Nov 23.

At the roadshow, Venture also says it is determined to remain an outstanding partner to its customers.

Chairman and CEO Wong Ngit Liong also says the company will continue to move beyond operational excellence and will identify new business clusters and technology domains where it can add value and justify better margins.

Right timing: STI should attempt rebound soon

SINGAPORE (Sept 14): Here are two charts for our technical analysis this week:

STI daily (3,142): Relief rally sets in
On Sept 7, the Straits Times Index formed a doji, a sign that down momentum was fading. On Sept 11, the index made a low of 3,102, and it subsequenty rebounded. The initial upmove is likely to face resistance initially at 3,191, and then at the declining 50-day moving average currenty at 3,239.

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