On 6 August 2025, Venture Corporation Limited (“Venture”) announced their half year result for FY2025. There were no significant changes during the period, and the results are mainly similar to the previous quarter. Management has disclosed that there is momentum in business wins across multiple technology domains, which in turn may translate to a stronger financial performance over the next few quarters.
Venture has declared a special dividend of SGD0.050 per share to be paid together with the interim dividend. This is the first time management declared for additional dividends to be paid, which is a welcome sign on the back of their strong financial position.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::Half Yearly Results
Financial Highlights
Revenue
| Metrics | Current | Previous |
|---|---|---|
| Revenue | -8.8% | -7.5% |
| Rating | Unfavorable | Unfavorable |
Revenue for the first half of FY2025 has decreased by 8.8% to SGD1,261 million when compared to SGD1,384 million for the same period in the previous financial year. Management have disclosed that Group revenue declined largely due to lower demand in the Lifestyle Consumer technology domain, where Venture improved the reliability and longevity for customer’s key products through R&D design innovation, which led to lower product replacements. The metric remains Unfavorable.
Earnings Per Share
| Metrics | Current | Previous |
|---|---|---|
| Earnings per share | -7.9% | -6.8% |
| Rating | Unfavorable | Unfavorable |
Earnings per share for the first half of FY2025 has decreased by 7.9% to SGD0.392 per share as compared to the same period in the previous financial year. The decrease is less than proportionate than the decrease in revenue, as the Group improved its net profit margin to 9.0% due to a favorable sales mix compared to the same period last year. The metric remains Unfavorable.
Operating Cash Flows
| Metrics | Current | Previous |
|---|---|---|
| Operating Cash Flows | -44.6% | No Update |
| Rating | Unfavorable | Unfavorable |
Cash flow generated from operations for the first half of FY2025 has decreased by 44.6% to SGD149 million as compared to SGD270 million for the same period in the previous financial year. The decrease was mainly due to the lower profit before income tax, and the absence of the inventory clearance that was noted in the previous period. The metrics remains Unfavorable.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 22.3% | No Update |
| Rating | Favorable | Favorable |
Gearing ratio as of 30 June 2025 stands at 22.3%. This is computed using total assets of SGD3,533 million and total liabilities of SGD789 million. The metric remains Favorable.
Interest coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 261.2x | No Update |
| Rating | Favorable | Favorable |
Interest coverage as of 30 June 2025 stands at 261.2 times. This is computed using profit before tax of SGD141 million and interest expense of SGD0.543 million. The metric is Favorable. The extremely high interest coverage is due to the Group has no external borrowings, which is a good position to be at in view of the current high-interest rate environment.
Price-To-Book ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.44 | 1.09 |
| Rating | Unfavorable | Neutral |
Price-to-book (“P/B”) ratio became more expensive at 1.44. This is computed using the closing share price of SGD13.73 as of 15 September 2025 and Net Asset Value (“NAV”) of the Group of SGD9.52 per share as of 30 June 2025. The metric shifted towards Unfavorable as investors will be paying a smaller premium for its assets compared to the previous quarter update.
Do note that for the last few quarters, Venture has been generating more than sufficient earnings per share to payout their dividend. This has allowed their NAV to continue to increase, which in turn lower the P/B ratio over the last few quarters.
Worth noting that Venture has cash and cash equivalents of SGD1,255 million and no borrowings as of 30 June 2025. With total ordinary shares of 289 million, this represents net cash of SGD4.34 per share.
As of 15 September 2025, the Market Capitalization is approximately SGD3,950 million.
Website: Yahoo Finance: Venture Corporation Limited (V03.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 5.83% | SGD 0.800 |
| 2024 | 5.46% | SGD 0.750 |
| 2023 | 5.46% | SGD 0.750 |
| 2022 | 5.46% | SGD 0.750 |
| 2021 | 5.46% | SGD 0.750 |
| 2020 | 5.46% | SGD 0.750 |
Although the Group does not have a formal dividend policy, it strives to pay dividends that are on par or higher than the previous year. Since FY2018, the Group has paid interim and final dividends. Barring unforeseen circumstances, the Group aims to declare dividends at sustainable rates.
There is an additional dividend of SGD0.050 per share paid out in September 2025. Excluding this special dividend, Venture has a recurring payout of SGD0.750 per share. This is a more conservative estimate for future periods.
With a closing share price of SGD13.73 as of 15 September 2025, this translates to a dividend yield of 5.46%. For my benchmark, a general reasonable yield would be around 4.75%. The dividend yield is Favorable.
Website: Reasonable Dividend Yield 2025Q3 – 4.75%
If using dividend yield of 5.75% as a benchmark, based on the dividend of SGD0.750 per share there is potential for Venture to see its share price drop by another 5.0% to SGD13.04.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 13.73 | – |
| 5.75% | 13.04 | -5.0% |
| 6.75% | 11.11 | -19.1% |
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Revenue | -8.8% | Unfavorable |
| Earnings per share | -7.9% | Unfavorable |
| Operating Cash Flows | -44.6% | Unfavorable |
| Gearing ratio | 22.3% | Favorable |
| Interest coverage | 261.2x | Favorable |
| Price to Book Ratio | 1.44 | Unfavorable |
| Overall | Neutral |
Overall, the metrics remains Neutral to invest in Venture. With the current uncertainty in the macro environment, this trend may continue for the rest of the financial year. Venture still has sufficient earnings and is in a strong financial position to capture opportunities and deliver long-term value to all stakeholders.
Background
Established in 1989, Venture is a leading provider of technology services, products and solutions to over 100 global brands across the world. Headquartered in Singapore, they harness the collective strengths of their 12,000-strong team globally in differentiated capabilities spanning R&D, product industrialization, advanced manufacturing, supply chain solutions and product lifecycle management.
Over the years, they have built in-depth knowledge and differentiated capabilities in numerous technology domains. These include Life Science and MedTech; Lifestyle and Wellness; Smart Industrial; Test Measurement and Instrumentation; NextGen Communications and other breakthrough technologies.
With more than 5,000 products and solutions and over three decades of experience in advanced manufacturing technology, they will continue to expand into new technology domains through its collaborations with their customers and partners in selected ecosystems of interest.
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Website: Venture Corporation Limited (SGX: V03): 2025 First Quarter Business Update
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