Venture Corporation

Maybank KE downgrades Venture to 'hold'; recommends lower entry point

SINGAPORE (Nov 12): Maybank Kim Eng Research is downgrading its call on Venture Corporation to “hold” from “buy” previously to reflect to more challenging times. The research house has also cut its target price on Venture to $16.91 from $18.85 previously.

Investors are also recommended to take profit and await a materially lower entry point, assuming fundamentals do not deteriorate further.

Venture posts 5.5% increase in 3Q earnings to $85.2 mil on higher revenue

SINGAPORE (Nov 8): Venture Corporation saw its earnings rise 5.5% to $85.2 million for the 3QFY2019 ending Sept 30, from $80.8 million a year ago, on the back of higher revenues for the quarter.

Diluted earnings per share rose to 29.1 cents for 3QFY2019, compared to 27.8 cents in 3QFY2018.

3QFY2019 revenue climbed 12.8% to $869.1 million, from $770.4 million a year ago.

Venture has attributed revenue growth to its position to capture growth despite geopolitical tensions such as US China trade war, Brexit and currency volatility causing headwinds.

Venture posts 7.3% drop in 2Q earnings to $90.8 mil on lower revenue

SINGAPORE (Aug 8): Venture Corporation reported 2Q19 earnings fell 7.3% to $90.8 million from $97.9 million in 2Q18 a year ago.

This brings 1H19 earnings to $181.7 million, unchanged from 1H18.

Revenue for 2Q19 came in at $903.5 million, 5.1% lower than $952.3 million a year ago.

Overall expenses were also lower in 2Q19, led by 74% lower R&D expenses of $9 million and 21.1% lower other operating expenses of $22.3 million.

As at end June, cash and cash equivalents stood at $761.8 million.

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.

Long-term growth for Venture intact despite trade woes: Maybank KimEng

SINGAPORE (June 12): The ongoing US-China trade war has clouded the earnings outlook for local technology stocks.

Despite this, Maybank Kim Eng is upgrading its call on Venture Corporation to “buy” from “hold” previously with an unchanged target price of $19.74.

Since late-April, shares in Venture have dropped about 18% amid a broad sector sell-off, creating an entry point.

Venture Corp reports 8.6% rise in 1Q earnings to $90.9 mil on higher revenue

SINGAPORE (Apr 25): Venture Corporation posted earnings of $90.9 million for the 1Q19 ended March, some 8.6% higher than $83.7 million a year ago.

The increase is in tandem with higher revenue achieved during the quarter, despite pricing pressures and intense competition in the business environment.

Venture Corp says the sustained profitability is driven by deep value creation through differentiated engineering capabilities and continuous lean initiatives to drive productivity gains, along with astute cost management.

Manufacturing presence in Malaysia could benefit Venture amid trade war: CGS-CIMB

SINGAPORE (Nov 7): CGS-CIMB Securities is upgrading its call on Venture Corporation to “add” from “hold” previously as it rolls over to FY20F.

At the same time, the research house is lowering its target price from $17.83 to $17.44 after accounting for lower revenue growth expectations, which has led to a cut in FY18-20F core earnings per share (EPS) by 6.6-10.9%.

The new target price is based on a 12.3 times multiple, 0.5 standard deviation points below the 11-year average of 15.3 times.

Strong earnings recovery expected for Venture Corp after a dismal 3Q

SINGAPORE (Nov 5): RHB Research and OCBC Investment Research are maintaining their “buy” calls on Venture Corp while lowering their target price and fair value estimate to $19 and $20.13, from $22.20 and $23.23, respectively.

This comes after the group last week reported a y-o-y decline in 3Q18 earnings on lower revenue.

Venture faces 2019 earnings risk due to competition, says UOB Kay Hian

SINGAPORE (Oct 19): UOB Kay Hian is maintaining its “hold” call on Venture Corporation with a target price of $18.20.

This comes post the release of Philip Morris International’s (PMI) 3Q earnings statement last night, which reflected strong operating metrics but a more mixed outlook on device production split, in UOB’s view.

In a Friday report, analyst Foo Zhiwei says current levels may not represent a buying opportunity, as he remains cautious on Venture’s earnings outlook.

Positive IQOS sales momentum signals promising 2019 for Venture: UOB

SINGAPORE (Oct 2): UOB Kay Hian is maintaining its “hold” call on Venture Corporation with a recommended entry price of $16 and target price of $18.20, which is pegged to 14 times 2018F P/E.

The research house’s rating reiteration follows Philip Morris International’s (PMI) Investor Day 2018 last week, which revealed a pickup in sales of IQOS (I quit ordinary smoking) smoke-free electronic devices with approximately 1.8 million IQOS units sold in 2Q18 and 1.7 million units sold in the first two months of  the subsequent quarter.

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