Venture Corporation - RHB Invest 2020-08-05: Awaiting Confirmation On Outlook; UNDER REVIEW

VENTURE CORPORATION LIMITED (SGX:V03) | SGinvestors.io VENTURE CORPORATION LIMITED (SGX:V03)

Venture Corporation - Awaiting Confirmation On Outlook; UNDER REVIEW

  • We place Venture Corp (SGX:V03) UNDER REVIEW, while we await confirmation on the company’s outlook.
  • Venture Corp is due to report its 2Q20 results on 7 Aug, and we expect its performance to be relatively weak, due to the closure of its factories in Malaysia caused by the Movement Control Order (MCO), as well as social distancing regulations which slowed down production in Singapore. However, our channel checks indicate that the most of its factories have since ramped up production, and orders remain strong.



Improvement in the quarters ahead.

  • Venture Corp is looking ahead post lifting of the lockdowns in: countries where its global supply chain is at, as well as in places where it has operations – China, Malaysia, Singapore, Spain, and the US. By end-April, most – if not all – of its operating entities received exemptions to operate without constraints on the number of employees on duty or limits on working hours. As such, the supply side of its businesses has resumed operations, while these units continue to comply with safety and precautionary measures applied for on-site employees.
  • We expect its April data to remain weak, but Venture Corp’s performance should improve in the quarters ahead.


A stronger 2H20F.

  • Management also expects to record stronger 2H20 numbers, supported by traction with new and existing partners. There will also be support for the production of several new items from its partners across multiple technology domains like life sciences, healthcare & wellness, instrumentation, and networking & communications.
  • Venture Corp also expects to gain momentum with several new partners in the life sciences, genomics, healthcare & wellness industries. Contributions from these new partners are expected to increase post 2020.


Net cash balance sheet and attractive dividends.






Jarick Seet RHB Securities Research | Lee Cai Ling RHB Invest | https://www.rhbinvest.com.sg/ 2020-08-05
SGX Stock Analyst Report UNDER REVIEW MAINTAIN NEUTRAL 15.100 SAME 15.100



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