Venture Corporation’s first half of 2025 (1H25) results have met expectations, with a slight improvement in net margin to 9.0% and a special dividend of 5 Singapore cents declared. Despite a broad-based recovery in the second quarter of 2025 (2Q25), the consumer lifestyle segment remains weak. DBS Group Research has maintained a “hold” rating on the company, raising the 12-month target price to SGD13.60 from SGD11.80, reflecting a 7% upside.
The company’s revenue for 1H25 was SGD1.26 billion, marking an 8.8% year-on-year decline, primarily due to reduced demand in the lifestyle domain. However, Venture’s strong cash position, with net cash of SGD1.26 billion, supports a dividend per share (DPS) of at least 50 Singapore cents in the second half of 2025, bringing the full-year DPS to 80 Singapore cents, implying an attractive yield of approximately 6%.
Venture is well-positioned to capitalise on the China+1 manufacturing trend, with facilities in Malaysia. The company is experiencing strong momentum in new business wins across diverse technology domains, driven by its research and development capabilities and operational excellence. The anticipated launch of a new product in the lifestyle segment next year could serve as a catalyst for recovery.
DBS Group Research’s higher target price is based on a 4-year average price-to-earnings ratio of 16x, reflecting the potential re-rating of quality stocks under the Monetary Authority of Singapore’s Equity Market Development Programme. Key risks include global economic slowdown and USD volatility, which could impact revenue and earnings.
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