Venture Corporation's profit rises 61% to $69.8m in Q2

This brings Venture’s 1H17 profits to $118.4m.

Venture Corporation’s profits surged 61% YoY from $43.4m to $69.8m in Q2.

For 1H17, the company’s PATMI, which formed 57.3% of OCBC’ Investment Research’s FY17 forecasts, rose 49.5% YoY to $118.4m on the back of a 41.3% growth in revenue to $1.86b, on similar reasons as 2Q17.

OCBC Investment Research noted that revenue climbed by 48.3% from $683.3m to $1b. Its diversified customers and strong execution of programmes in prior quarters contributed to the revenue growth.

Venture’s operating expenses grew 46.8% to $931.2m, due to increased changes in finished goods and work-in-progress, and raw materials used, as well as employee benefits.

Analyst Eugene Chua commented, “VMS’ (Venture) 1H17 PBT and net margins improved by 0.6ppt and 0.4ppt to 7.8% and 6.4%, respectively, driven mainly by: 1) management’s impressive execution of its strategy to pursue value creation for its customers, and 2) continuous efforts to increase productivity and efficiency.”