Venture 2023Q3 Business Update

Last week, I wrote a long article on Venture and look at its historical performance. You can read it here if you have missed the article.

It just released its results yesterday and as expected, results continue to be weak. Breaking it down to quarters, it does show that weakness continues to persist in this quarter.

However, if one looks at cash flow and cash in balance sheet, the group continues to generate ton of cash and its cash continues to pile up. As mentioned by Egg_Farmer in Investing Note, they were stocking up inventories in FY2021 and FY2022. Coupled that with softer demand this year, the comparable is tougher.

What to expect for the last quarter?

I am expecting a similar results for the last quarter, meaning that FY2023’s revenue will be around the same level as what was seen in FY2020 and FY2021. However, margin would be lower at around 9%, as compared to 10% then, so EPS should drop to around $0.90.

While I am expecting the same final dividend of $0.50, I do hope that they can give a bit more as they have a very strong balance sheet. Or maybe a special dividend, if they have no use of the cash pile.

What I really like to see though, would be their success in rolling out of new products next year. That would allow them not just to grow both their top and bottom lines, but also open up possibly future opportunities.

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