Earnings for the six months to June was down 8.6% y-o-y to $113 million, on the back of a 8.8% drop in revenue to $1.3 billion.
Nonetheless, on a sequential basis, Venture's revenue for the most recent 2QFY2025 was an improvement of 4.7% y-o-y, and net margin was held steady at 9%.
To sweeten the numbers, Venture will be paying a special dividend of 5 cents per share on top of the 25 cents per share interim dividend that it typically pays.
In addition, there has been some positive news with Malaysia, where Venture has a significant manufacturing operation, will be subjected to a tariff rate of 19% instead of 25% as earlier thought.
Venture's outlook, from Yeo's perspective, remains positive, driven by higher value solutions, differentiated capabilities, new product introductions and better certainty of customer orders after US tariff rates for Malaysia was announced.
Yeo is keeping his earnings projections for the coming FY2026 and FY2027, as he anticipates earnings growth driven by more customer orders.
His new target price of $15 is based on 18x blended FY2025 and FY2026 earnings, in line with its peers' reratings. His previous valuation multiple was based on 15x.
As at 9.22 am, Venture Corp shares changed hands at $13.38, down 0.96% thus far today but up 1.9% year to date.
