Stock Analysis: Venture | Lianhe Zaobao
Singapore's United Overseas Bank research recommends buying shares of Venture Corporation, with a target price of 16.70 SGD and a closing price of 14.97 SGD. Due to its differentiated solution strategy, the company is expected to achieve long-term growth, improved customer loyalty, increased orders, and higher profit margins. The company's earnings growth prospects are strong, cash generation capabilities are robust, the balance sheet is solid, and the dividend yield is higher than its peers. Despite the downside risks to earnings from slow demand and recovery pace, the research maintains a positive outlook on the company and continues to give it a "buy" rating
Venture Corp
- Recommendation: Buy
- Target Price: CNY 16.70
- Closing Price: CNY 14.97 (-0.20%)
Given Venture Corp's differentiated solution strategy that can drive long-term growth, we expect higher value solutions to enhance customer loyalty, thereby driving more orders and achieving higher profit margins. We are optimistic about it due to its strong earnings growth prospects, robust cash generation ability, solid balance sheet, and dividend yield higher than its peers.
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Venture Corp emphasizes to investors that it is not only engaged in manufacturing but also acts as an electronic manufacturing services provider, offering integrated capabilities that combine R&D and supply chain management.
Our forecasts also include downside risks to earnings due to demand and recovery pace being slower than expected. Overall, we maintain a positive outlook on the company and continue to give it a "Buy" rating. (Singapore United Overseas Bank Research)
