Venture Corp's Q3 net profit shrinks from 2019, but improves from Q2

Singapore

ELECTRONICS manufacturing services firm Venture Corporation posted a net profit of S$80.2 million in the third quarter of 2020, a 5.9 per cent year-on-year decline compared to a year ago.

Q3's performance has however improved by 14.2 per cent, compared with Q2 at S$70.2 million, the company said in an exchange filing on Friday evening after the market closed.

Venture Corp said this is indicative of its trajectory of recovery in Q3 as it mitigates the adverse impact of Covid-19.

It is expecting performance in the second half of 2020 to be stronger than H1, if the Covid-19-induced lockdowns and disruptions do not deteriorate further.

Revenue in Q3 stood at S$818.4 million, 5.8 per cent lower than a year ago. However, this was an 18.2 per cent improvement from Q2.

Earnings per share was 27.5 cents, down 5.5 per cent from a year ago.

Net asset value per share was S$8.72 as of Sept 30, versus S$8.65 at Dec 31, 2019.

Despite the weaker year-on-year performance, Venture Corp noted that it maintained a stable profit before tax margin of 11.3 per cent and net margin of 9.8 per cent year on year, reflecting the resilience brought by its product and business diversity.

The company said there was broad-based growth across its portfolio of technology domains.

In particular, there was strong demand from customers in the life science and genomics, medical devices and equipment, healthcare and wellness, networking and communications and semiconductor-related equipment technology domains, it said.

It added that it will continue to execute its plans to strengthen and deepen its business interests in the US, China and South-east Asia.

Venture Corp's shares closed 12 Singapore cents or 0.6 per cent lower at S$19.82 on Friday.