OCBC Investment Research has reiterated its “buy” call on Venture Corp after the company delivered in-line 1QFY2016 results.
Revenue grew 3.6% y-o-y to $630.7 million. However, as 1Q16 operating expenses grew at a slower pace of 3.1%, the company’s profit before tax and PATMI rose at a higher 10.7% and 10.1% to $42.5 million and $35.8 million, respectively, despite a 15.6% jump in income tax expense to $6.6 million.
Among the positives cited by the broker are Venture’s strong balance sheet, consistent positive cash flow generating ability and diversified revenue base.
The broker expects Venture’s steady growth momentum to continue, driven especially by its life science sub-segment as well as strategy to focus on value creation for customers.
It says that over the longer term, the strategy allows Venture to “1) sustain its margins through value creation, and also 2) to produce more products efficiently with lower headcount, resulting in sustainable growth”.
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Revenue grew 3.6% y-o-y to $630.7 million. However, as 1Q16 operating expenses grew at a slower pace of 3.1%, the company’s profit before tax and PATMI rose at a higher 10.7% and 10.1% to $42.5 million and $35.8 million, respectively, despite a 15.6% jump in income tax expense to $6.6 million.
Among the positives cited by the broker are Venture’s strong balance sheet, consistent positive cash flow generating ability and diversified revenue base.
The broker expects Venture’s steady growth momentum to continue, driven especially by its life science sub-segment as well as strategy to focus on value creation for customers.
It says that over the longer term, the strategy allows Venture to “1) sustain its margins through value creation, and also 2) to produce more products efficiently with lower headcount, resulting in sustainable growth”.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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