Venture’s net profit leaps by 12% to $40.6m

On back of value-creation and forex gains.

The global electronics firm is peaking at the right time as it enters a sweet spot for growth, registering a 16% jump in its earnings to $693m this quarter, its strongest quarterly growth in six years.

According to analysts from Maybank Kim Eng, Venture is entering a stage of transformation, led by the growth in its Test & Measurement/Life Sciences & Medical sector. The sector was the strongest performer for the company this quarter, making up 36% of its total revenue.

“This is the segment with the most traction in market share gains and value-creation, with existing and new customers. We expect the momentum to be sustainable into 4Q,” Maybank Kim Eng said.

Its other segments also performed decently, including improvements from Industrial products and computer peripherals.

“Following an 80% YoY rise to SGD53m in 1H15, FCF jumped 146% to SGD60m in 3Q alone on stronger operating CF. Venture may consider raising its DPS to SGD0.55 from the SGD0.50 DPS it has paid since FY12, likely next year,” Maybank Kim Eng added.