Brokers' take

Grand Venture Technology (GVT) | Hold (downgraded) Aug 19 close: S$0.22 Target price: S$0.22 CGS-CIMB, Aug 16

Net profit for the first half of FY2019 missed our expectations at 23 per cent of our full-year forecast. In the semicon segment, revenue fell 44 per cent year-on-year (yoy) as the semiconductor industry slowed down due in part to the global trade tensions. The life science segment did better with revenue growth of 83 per cent yoy.

We think net profit growth could resume in FY20 as the semicon industry recovers and new customers/products in the life science segment start to contribute.