Venture Corporation (V03) H1 2024 earnings summary

Executive summary

• Revenue for 1H24 was S$1,384.2 million, down 12.5% year-over-year due to softer 1Q24 demand, but 2Q24 saw a 7.6% sequential increase to S$717.5 million, with net profit up 5.7% quarter-over-quarter to S$63.5 million.

• Net profit attributable to owners was S$123.7 million for 1H24, down 11.7% year-over-year, with net margin improving to 8.9% from 8.8%.

• Majority of technology domains contributed to sequential revenue growth, notably Advanced Industrial Technology, Semiconductor Related Products & Modules, Test & Measurement Instrumentation, and Networking & Communications.

• Diluted EPS for 1H24 was 42.6 cents, down from 48.0 cents in 1H23.

Financial highlights

• Cash generated from operating activities in 1H24 was S$302.3 million, up from S$290.9 million in 1H23.

• Net cash position as of 30 June 2024 was S$1,190.8 million, up from S$1,056.3 million at end-2023 and up 33% year-over-year.

• Net asset value per share increased to S$9.82 as of 30 June 2024, up from S$9.76 at end-2023.

• Investment revenue increased 49.2% year-over-year, mainly from higher net cash and favorable interest rates.

Outlook and guidance

• Expects stronger group revenue in 2H24 compared to 1H24, supported by new customer onboarding, new product introductions, and geopolitical risk mitigation.

• Continued investment in expanding capabilities in targeted technology domains to drive quality growth.