Earnings of Venture Corp increased by 7.6% to $140.4 million in 1HFY21 ended June, from the $130.5 million posted in the year before thanks to strong customer demand.
On a fully diluted basis, earnings per share was 48.1 cents, compared to 44.9 cents in 1HFY20.
With this net asset value per ordinary share stood at 893.0 cents on June 30, up from 875.5 cents on Dec 31.
Revenue for the first six months of the year was up 4.9% to $1,432.2 million, on the back of robust customer orders.
In 2Q21, the group registered an 8.6% q-o-q growth in revenue to $745.5 million, bringing its net profit up 14.9% q-o-q to $75.1 million.
In this time, Venture’s employees benefits expense rose by 7.7% to $156.9 million in line with the increased level of activities.
Depreciation and amortisation expenses softened by 10.9% to $19.0 million, while research and development expenses dropped by 38.2% to $10.0 million. The latter – which comprises prototyping, tooling, non-recurring engineering, materials and related services - had lower expenses due to customer’s requirements.
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The group’s working taskforces set up in collaboration with global partners, business associations and government authorities helped it mitigate most of the challenges brought on by the pandemic, it says in its results filing.
Meanwhile, its differentiated business models saw its net margin coming in at 10.1% in 2Q21 and 9.8% in 1HFY21. The latter is an improvement of 0.2 percentage points from the year before.
As at June 30, Venture’s cash and cash equivalents stood at $922.2 million, from $834.1 million in the year before.
The group has declared an interim dividend of 25 cents per share, consistent with what was paid out in 1HFY20.
Looking ahead, Venture says that the demand outlook appears “ebullient” for the next 12 months.
It sees sustained expanding demand for its innovative products and services under its life sciences technology and genomics division. Under this, the group is looking into new trends such as next-generation sequencing and diagnostics.
Venture’s R&D labs and operations segment is also involved in developing/manufacturing what it calls “breakthrough technology products””.
“An example is for an emerging life science technology group that has established an industry-leading position in single cell analysis and continues to expand its expertise to new adjacent domains through M&As," it explains.
Under its lifestyle consumer electronics cluster, Venture is supporting the launch of a new platform of next-generation device which is expected to launch in the second half of this year.
Potential growth areas for the group include liquid chromatography and mass spectrometry, test and measurement instrumentation, networking and communications, advanced industrials and semiconductor-related equipment.
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To cope with the component shortage in the industry, the group has taken steps such as redesigning parts and components to improve access to raw materials and its assurance of supply.
The group continues to operate as an essential economic sector in Malaysia despite the extended movement control order.
It has been improving its operational efficiencies through tactical strategies to support order fulfilment. It has also commenced vaccination at its sites in Malaysia and has plans to have over 80% of employees there to receive their first dose by 3Q21.
Shares of Venture Corp closed up 6 cents or 0.31% at $19.40 on Aug 6.
Cover image: Venture Corp
