{"id":17433,"date":"2024-07-12T07:00:17","date_gmt":"2024-07-11T23:00:17","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=17433"},"modified":"2026-06-08T19:32:17","modified_gmt":"2026-06-08T11:32:17","slug":"venture-corporation-on-track-for-revenue-recovery","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hans\/venture-corporation-on-track-for-revenue-recovery\/","title":{"rendered":"Venture Corporation &#8211; On track for revenue recovery"},"content":{"rendered":"<p><em>Excerpts from CGS International report<\/em><\/p>\n<ul>\n<li>We provide an update on Venture Corporation.<\/li>\n<li>In its 1Q24 business update, Venture guided that 2Q24F\/2H24F revenue is expected to be stronger qoq and hoh.<\/li>\n<\/ul>\n<p>We reiterate Add as we expect Venture to see a resumption in EPS growth in FY24-26F, supported by its 5.40% dividend yield (over FY24-26F).<\/p>\n<h2>Targeting stronger 2Q24F and 2H24F<\/h2>\n<p>In its 1Q24 business update, Venture Corporation guided that it is targeting for 2Q24F revenue to improve qoq and 2H24F revenue to be stronger hoh.<\/p>\n<p>Venture also commented in its 1Q24 business update that it is onboarding new customers in the EMS++, Precision Engineering and Ventech Group businesses, including customers in the medtech and lifestyle sectors, as well as promising technology domains.<\/p>\n<p>Based on customers\u2019 feedback, Venture also sees demand strengthening in several technology domains for the rest of 2024F.<\/p>\n<p>In its 1Q24 business update meeting, Venture also commented that its new Batu Kawan facility could add an additional 10% to the group\u2019s total floor area and that the company is exploring with customers to gradually commence production at this new factory.<\/p>\n<h2>Customer concentration increased in FY23<\/h2>\n<p>Based on its 2023 annual report, we note that customer concentration risk has increased for Venture. According to the report, Venture has 2 major customers that each accounted for more than 10% of revenue in 2023 versus one such customer in 2022.<\/p>\n<h2>Some indirect benefit from the Artificial Intelligence (AI) trend<\/h2>\n<p>With more AI centric data centres, the demand for networking related components\/modules used in such data centres will increase, in our view.<\/p>\n<p>This could benefit Venture which supplies components\/modules to Broadcom Inc (AVGO US, NR, CP:US$1802.52), Marvell Technology Inc (MRVL US, NR, CP:US$73.14) and Lumentum Holdings Inc (LITE US, NR, CP:US$49.58).<\/p>\n<h2>Valuation\/Recommendation<\/h2>\n<p>We reiterate our Add call on Venture Corporation as we expect it to see a resumption in EPS growth in FY24-26F (as customers\u2019 orders pick up) and share price support from its 5.40% dividend yield (over FY24-26F).<\/p>\n<p>We retain our valuation basis of 14.6x FY25F P\/E (15-year average) and TP of S$15.93.<\/p>\n<p>Re-rating catalysts: new product launches by customers and better than-expected revenue opportunities over FY24-26F as further business opportunities arise from companies keen to diversify their production orders from China to Malaysia.<\/p>\n<p>Downside risks include:<\/p>\n<ul>\n<li>Potential supply chain disruptions affecting the availability of parts and components<\/li>\n<li>Labour shortages potentially lowering its production output and<\/li>\n<li>A worsening global economic outlook potentially further reducing orders from customers<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2024\/07\/Venture-Corporatipn-share-price-chart.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-17434 size-full\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2024\/07\/Venture-Corporatipn-share-price-chart.jpg\" alt=\"Venture Corporation share price chart\" width=\"1506\" height=\"462\" \/><\/a><\/p>\n<p>Venture Corporation share price chartYou can find the full report <em><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2024\/07\/Venture-2.pdf\">here<\/a><\/em> and the company website <em><a href=\"https:\/\/venture.listedcompany.com\/home.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here<\/a>.<\/em><\/p>\n<p>[thrive_leads id=&#8217;15712&#8242;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Excerpts from CGS International report We provide an update on Venture Corporation. In its 1Q24 business update, Venture guided that 2Q24F\/2H24F revenue is expected to be stronger qoq and hoh. We reiterate Add as we expect Venture to see a resumption in EPS growth in FY24-26F, supported by its 5.40% dividend yield (over FY24-26F). Targeting [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":17435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[3055,3051],"tags":[503,881,1241,1331,1943,2320,2725],"class_list":["post-17433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-electronic-ai-technology-singapore","category-singapore","tag-tech-stocks","tag-singapore-stocks","tag-venture-corporation","tag-singapore-stocks-to-buy","tag-singapore-stocks-ideas","tag-manufacturing-stocks","tag-venture-corporation-share-price-chart"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/17433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/comments?post=17433"}],"version-history":[{"count":5,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/17433\/revisions"}],"predecessor-version":[{"id":17443,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/17433\/revisions\/17443"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media\/17435"}],"wp:attachment":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=17433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/categories?post=17433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/tags?post=17433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}