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PR Newswire
28-03-2014, 09:42 PM
Venture Corp: A golden goose for dividends
Venture Corp (VMS) managed to deliver continued sequential improvement in its quarterly results for FY13. We believe this reflects the recovery momentum of the global economy and consequently VMS’s operations, although FY13 revenue and PATMI still came in 2.4% and 6.1% lower than FY12, respectively. Given VMS’s strong balance sheet and our free cashflows/share forecast, we believe its FY13 S$0.50 DPS remains a sustainable baseline scenario. Looking ahead, although we continue to expect FY14 to be a recovery year for VMS, we conservatively trim our revenue forecast by 3.7% as there are still pockets of uncertainty in the global economy. Coupled with a higher effective tax rate assumption, our FY14 PATMI projection is lowered by 6.0%. Maintain BUY on VMS, albeit with a reduced fair value estimate of S$7.98 (previously S$8.50), pegged to 15x FY14F EPS. (Wong Teck Ching Andy)
Venture Corp (VMS) managed to deliver continued sequential improvement in its quarterly results for FY13. We believe this reflects the recovery momentum of the global economy and consequently VMS’s operations, although FY13 revenue and PATMI still came in 2.4% and 6.1% lower than FY12, respectively. Given VMS’s strong balance sheet and our free cashflows/share forecast, we believe its FY13 S$0.50 DPS remains a sustainable baseline scenario. Looking ahead, although we continue to expect FY14 to be a recovery year for VMS, we conservatively trim our revenue forecast by 3.7% as there are still pockets of uncertainty in the global economy. Coupled with a higher effective tax rate assumption, our FY14 PATMI projection is lowered by 6.0%. Maintain BUY on VMS, albeit with a reduced fair value estimate of S$7.98 (previously S$8.50), pegged to 15x FY14F EPS. (Wong Teck Ching Andy)