Venture Corporation has announced a special dividend of S$0.05, bringing the total interim dividend per share (DPS) for the first half of 2025 to S$0.30. This comes as the company reported a revenue decline of 8.8% year-on-year to S$1.26 billion for the same period. Despite the drop, the company’s net profit of S$113 million exceeded expectations, aligning with Bloomberg’s consensus forecast, CGS International said in a report.
The decision to issue a special dividend follows shareholder demands for higher returns, voiced during the annual general meeting on 24 April. Venture’s balance sheet remains robust, with net cash of S$1.3 billion as of the end of June and a free cash flow of S$137.8 million.
The company experienced a slight revenue recovery in the second quarter of 2025, with a 4.7% increase quarter-on-quarter. This was driven by a rise in demand from sectors such as life sciences, medical, semiconductor, and advanced industrial segments. However, challenges persist due to uncertainties in the tariff environment and softness in the lifestyle domain.
Looking ahead, CGS International has upgraded its earnings outlook for Venture Corporation for the fiscal years 2025 to 2027, maintaining its net margin target of 8-10%. The company anticipates improved business conditions by 2027, with potential growth catalysts including new product launches and production diversification from China to Malaysia.
Venture’s stock has been upgraded to “Add” with a target price of S$13.45, reflecting a positive outlook as the company continues to invest in long-term growth and value creation.
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