01-03-2018, 12:33 AM (This post was last modified: 01-03-2018, 12:40 AM by Big Toe.)
Remuneration is completely different from being cautious and prudent to the extreme.
Higher ranked venture staff are paid market rate and overall annual remuneration beats most local listed companies but it varies according to its financial results. Do remember it bought up GES and the pie is now shared among more people as they grow larger. Those that have been around for a long time maybe holding on to shares and options that are in issued in the sub $1 range way back in time. Then again if you are holding to shares of venture during those days, you too will be doing very well now.
As for wages, it is not a choice they have, it is difficult to get good RnD staff and they will retain all whenever possible. It is a highly prized skill that can command a decent pay in most parts of the world. In any case, expert knowledge in most fields command high salaries.
Can the top performing companies be on top of their game without very talented pool of people? Impossible.
It is not by luck that companies do well for a prolonged period of time. Talent is huge part of the equation.
Venture's earnings has also been driven by Philip Morris's innovative Heat-Not-Burn cigarettes known as iQOS. iQOS generates much lesser smoke and yet offers similar experience to smoking unlike traditional e-cigarettes or smoking.
It appears to be in a high growth trajectory, accounting for 12.7% of Philip Morris revenue by 2017 after 2 years. If you look at slide 42, iQOS has taken a market share of 16.3% in Japan. In Korea, it has taken 7.6% market share after being launched only in Q2. The product is still waiting for FDA approval in USA, which will be another huge market for iQOS.
Venture's client base is certainly much better today compared to the traditional PC customers of the past.
Thanks shadow_walker for the interesting info. I always thought venture corp impressive result is due to medical devices. I read the info abt Phillip Morris IQOS device and I am not sure why it is popular. Probably I am not a regular smoker. First, the device needs time to heat up and is slow according to the link. Next, only 14 puffs compared to other e-cig which can give as many as 200 puffs. Also, needs regular charging and cleaning. I don't smoke but I do know how and did tried while I was a kid. I thought smokers prefer the smoke coming out of their mouths. Some even like to play with it. Creating bubbles with the cig smoke. The feeling of holding the cig using 2 fingers also felt better compared to holding a e-vaper. For me, I will still prefer the traditional cig then this IQOS. Comments from regular smokers out there?
(11-04-2018, 08:14 AM)Bibi Wrote: Thanks shadow_walker for the interesting info. I always thought venture corp impressive result is due to medical devices. I read the info abt Phillip Morris IQOS device and I am not sure why it is popular. Probably I am not a regular smoker. First, the device needs time to heat up and is slow according to the link. Next, only 14 puffs compared to other e-cig which can give as many as 200 puffs. Also, needs regular charging and cleaning. I don't smoke but I do know how and did tried while I was a kid. I thought smokers prefer the smoke coming out of their mouths. Some even like to play with it. Creating bubbles with the cig smoke. The feeling of holding the cig using 2 fingers also felt better compared to holding a e-vaper. For me, I will still prefer the traditional cig then this IQOS. Comments from regular smokers out there?
Not a smoker here nor have I tried the iQOS.
1 key benefit is that it hardly generates any smoke and does not leave any residual smell on your body. In Japan, it is not uncommon to see a sign where restaurants allow smoking iQOS inside but not the normal cigarettes.
Yet unlike vaping or e-cigarettes, iQOS delivers similar experience as it contains actual tobacco and not artificial nicotine.
(11-04-2018, 08:14 AM)Bibi Wrote: Thanks shadow_walker for the interesting info. I always thought venture corp impressive result is due to medical devices. I read the info abt Phillip Morris IQOS device and I am not sure why it is popular. Probably I am not a regular smoker. First, the device needs time to heat up and is slow according to the link. Next, only 14 puffs compared to other e-cig which can give as many as 200 puffs. Also, needs regular charging and cleaning. I don't smoke but I do know how and did tried while I was a kid. I thought smokers prefer the smoke coming out of their mouths. Some even like to play with it. Creating bubbles with the cig smoke. The feeling of holding the cig using 2 fingers also felt better compared to holding a e-vaper. For me, I will still prefer the traditional cig then this IQOS. Comments from regular smokers out there?
Allow me to provide some insights, I used to work for Uncle Philip. There are some very interesting aspect to the development of Iqos (Heat Not Burn Technogloy, and in short HNB) in the industry. I was aware that Venture was producing for PMI, but during my time there, i wasn't 100% convinced that Iqos will be a hit, as there were several predecessor to the product before and all have failed. Nonetheless, the company has proven me wrong. But from my observations, time spent there, as well as industry information which can be widely available, the product has a few thing going for it. Please allow me to sum it up from the perspective of both PMI and Venture
Positive
North Asia market is extremely receptive to the product or concept of Heat Not Burn
The product from PMI in specific has been deemed superior in terms of taste to other brands, the only one that has a strong brand following is Ploom, which is owned by JT. However, JT is suffering from slow development and might be ceding territory to PMI and BAT
Profit margin from Iqos is extremely high from the heet (not a spelling mistake) or heat sticks (depending on where you are), which means PMI is willing to reinvest the profits back into the product thru expansion of capacity or thru giving more margin to Venture to ensure product quality.
Consumers in developed market and China are aware of the products and have interest to have a trial - i.e. a lot of guys need to buy the equipment
The product has proven to convince smokers to switch to the heat not burn tech, both in research and from my personal exp. I have given that piece of product to my friend's hubby, and after trying out 1 pack, he can't smoke conventional cigs due to the stronger taste. It's like you drink zero sugar 100 plus for 1 month, and switching back to the normal 100 plus. You have changed your taste profile.
PMI has a huge lead over competitor in ALL market for the time being, i.e. Venture will stand to gain
Negative
PMI is selling the equipment at a loss and being PMI, i am not sure when will they start to squeeze their suppliers. Trust me, this company is a well oiled profit making machine. They are ruthless.
We have only heard positive stories from Asia, and zilch from Europe on the product. If Americans are not picking it up, that means there is a ceiling to the potential (which is my reason for not investing in Venture and PMI for the time being), and it might be over priced.
Competition is heating up, China Tobacco has already have products that are as good as Iqos. BAT and JT will soon be able to catch up as well. - so that will impact Venture.
Debt has been amassed pretty quickly (from my limited memory) over the years, i am not sure how will it impact Venture
I will not comment on the health aspect of the technology. I have not read the research papers and so, I will not comment. I am looking at it
1. Iqos has been launched in Europe including Germany, Russia and Spain but it's just that Korea and Japan are the stellar markets.
2. Iqos has not been launched in USA yet pending FDA approval. One can just Google about it.
3. VCL was the sole supplier in 2017 but it won't be the sole supplier in 2018.
The sharp drop appears to be an overreaction given that Venture has close to 200 customers. The sharp drop in Philip Morris share price looks to be Mr Market at work too.
Nobody expects iQOS to slow down suddenly in Japan, but there is still an opportunity in Europe and US awaiting FDA approval. Japan is likely an inventory adjustment as Philip Morris overestimated the spike in demand.
http://infopub.sgx.com/FileOpen/AGM%20Re...eID=500671
[url=http://infopub.sgx.com/FileOpen/AGM%20Results%20-%2024-04-18.ashx?App=Announcement&FileID=500671][/url]
Interestingly or not suprisingly? Shareholders voted down resolution 8 (Employee share options) 44% for, 56% against.
I do find shares options were issued quite aggressively and at $7 plus over the past one year.
Anybody went for the AGM? Any mention of slowdown in business?
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