CFA Society Singapore
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.
According to management, Venture generally tries to aim for a 6-10% net profit margin range.
“This, however, requires the whole corporation to work in tandem, in our view, and Venture would have to continuously add new differentiating capabilities,” says analyst William Tng in a Monday report.
According to Tng, Venture says it has more than 50-60 key professionals in the company that are part of the team that is driving future growth and to address the succession issue.
As for US-China trade tensions, Venture believes it can benefit from it although global manufacturing supply chains will take time to change.
“We maintain our ‘add’ rating with target price of $17.44 based on 12.3x FY20F earnings, 0.5 s.d. below the 11-year average of 15.3x,” says Tng.
Year to date, shares in Venture are down 27% to $15.64.