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Venture Corporation - RHB Invest 2022-08-08: No Hiccup From Supply Chain Constraints; BUY

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

Venture Corporation - No Hiccup From Supply Chain Constraints; BUY

  • Venture Corp reported robust 1H22 numbers, with revenue up 25.4% y-o-y to S$906.8m and NPAT surging by 24.1% y-o-y to S$90.2m – which is slightly higher than our estimates.
  • Going forward, management anticipates demand to remain unabated in 2H22, and expects this to mitigate supply chain constraints. As such, we raise FY22F PATMI forecast for Venture Corp by 2% to S$353m, which results in a new and higher target price (pegged to 19x FY22F P/E).



No halt to demand in 2H22F.

  • Venture Corporation (SGX:V03) expects demand to be maintained in 2H22, as it still sees resilient demand across its diversified customer base – especially in the life science & genomics, healthcare & wellness, networking & communications, test & measurement instrumentation and process & test equipment in the semiconductor technology domains.
  • Venture Corp's management does not anticipate any weakness in demand in the short term, and still expects this to remain robust across all its verticals.


Supply chain constraints not likely to affect performance.

  • Venture Corp continues to see supply lagging behind demand – with challenges from global supply chain constraints, rising inflationary pressures, and a tight labour situation. However, with its operational excellence and increased focused on inventory management, we expect the company to continue mitigating this this issue successfully – just like it did in 1H22.
  • We also think that this headwind is not likely to impact Venture Corp's 2H22 results, if the current condition is unchanged.


Venture Corp declared 1H22 interim dividend of S$0.25

  • Venture Corp declared an interim dividend of S$0.25 per share, just like the amounts paid in FY20 and FY21.
  • For FY22, we expect its dividend yield to be around 4%.

Targeting higher margin products of the future.






Jarick Seet RHB Securities Research | https://www.rhbgroup.com/ 2022-08-08
SGX Stock Analyst Report BUY MAINTAIN BUY 23.30 UP 22.800



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