The bulk of GVT's end demand comes from semiconductor, life sciences and aerospace customers in the rest of Asia and Europe.
"Management’s decision to maintain its 1HFY2025 revenue range at $90 to $96 million signals confidence in both order visibility and production efficiency," says DBS.
Grand Venture is actively engaging with its customers to reroute the majority of US-bound shipments to manufacturing facilities in Asia, thereby mitigating potential delays, or added costs.
"Meanwhile, the remaining portion of exports comprises so-called new product introductions, which are limited in volume and expected to scale regionally over time in Asia," adds DBS.
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"The combination of sectoral and geographic diversification, alongside strong execution agility, supports a sustained growth trajectory through FY2025, even as tariff risks evolve.
DBS cautions that a key area to watch is the potential for sector-specific tariffs on the semiconductor supply chain, which introduces indirect risks via softer customer demand or pricing pressure.
"While tariff details remain fluid, assuming a 25% tariff on semiconductor-related exports in line with sectoral precedents under the Trump administration, 50% of affected US-bound shipments can be rerouted to Asia, and the remaining tariff costs are partially absorbed (50%), we estimate a 4-8% drag on earnings, depending on pass-through dynamics and customer volume retention," says DBS.
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In addition, DBS says that while Grand Venture's China business does not have significant sourcing from China, there could be some downside bias to its margin assumptions should Trump’s broad-based tariffs contribute to an inflationary cost environment.
"Nonetheless, Grand Venture offers compelling value, trading at 14x FY2025 earnings and 11x FY26F earnings, based on April 11’s close price," says DBS.
