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

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

By: 
PC Lee
27/11/18, 01:15 pm

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.

SATS well supported by decent dividend yield, strong growth prospects: DBS

SINGAPORE (May 23): DBS Vickers Securities is remaining positive on SATS with a “buy” call and target price of $5.44, on the belief that Changi Airport and regional aviation growth will continue to drive the gateway services provider’s long-term earnings growth. This comes after SATS ended FY19 with earnings of $248.4 million, down 5% y-o-y due to the absence of one-off gains. Operating profit nonetheless came in line with DBS’s expectations at $247 million due to better operating margins, while a higher final dividend per share (DPS) of 13 cents was also declared compared to 12 ....
Read More >>

Regionalisation, digitalisation key to UOB's growth, analysts say

SINGAPORE (May 23): Analysts believe United Overseas Bank (UOB) will leverage technology as well as efforts to spread its wings across the region in order to ride out current macroeconomic volatilities. “[UOB’s] key differentiator remains in their Asean footprint across Malaysia, Indonesia, Myanmar, Vietnam, particularly being the only Singapore bank with a local Thailand presence,” says DBS Group Research analyst Lim Rui Wen in a flash note following UOB’s Corporate Day 2019 on May 15. “We continue to see huge potential as UOB continues to engage and tap into a different pool ....
Read More >>

Yongnam on track for a potential turnaround in FY20, says CGS-CIMB

SINGAPORE (May 23): CGS-CIMB Research is maintaining its “add” call on Yongnam Holdings with an unchanged target price of 33 cents, which is pegged to 0.7 times FY19F P/BV based on a 20% discount to the long-term average of 0.9 times. To recap, Yongnam recently announced it had secured contracts worth $120.8 million for infrastructure works in Singapore, Hong Kong and India. This bring the group’s orderbook to $448 million, the highest in seven years. In a report last Thursday, analyst Colin Tan says the latest development boosts Yongnam’s outlook for a potential turnaround in....
Read More >>