For the uninitiated, Venture Group is one of the poster children of Singapore’s reputation as a high-tech hub.
The company was set up in the 80s as an electronics manufacturer, and is now a prominent manufacturer of high tech products with prestigious MNC clients all over the world.
Thinking of investing in Venture Group? Here’s a guide to hopefully help you make a decision.
Disclaimer: This article contains information on Venture Group share prices as well as the company’s recent performance trends. It is meant as a guide for readers only, not financial advice. Please practise your own discretion when making investment decisions.
Venture Group (V03) overview
|Sector||Technology equipment, electronic equipment and parts|
|Year of incorporation||1984|
|Total Market Cap||$4,342.86 million|
|Historical share price||Strong growth from 2016 to peak of $28.816 Apr 2018 before declining. Prices mostly at >$15 from the second half of 2018 before a dip to a low of $12.52 because of Covid-19.|
|Current share price||$15.58|
|Current dividend yield||4.673%|
|Dividend yield 5-year average||4.367%|
Note: The figures are accurate at the time of writing (Apr 2020), but due to the nature of this industry, this information changes very frequently. For the latest updates, do check Venture Group’s (V03) SGX listing.
Venture Group (V03) stock profile: Share prices, dividends and more
Venture’s market capitalisation is valued at over $4 billion, and it is tracked on the Straits Times Index. Their stocks are considered stable blue chips that have withstood the test of time.
Blue chip stocks are those that investors believe have sound financial performance. They are expected to be able to endure tough market conditions, and to give high returns when things are rosy.
Over the past decade, Venture has seen their net profit almost double, with a more modest growth in revenue.
However, in the recent years, their progress has been more volatile. Over the past five years, share prices gone from a stable $8-ish to rising sharply in 2017 and early 2018. It reached a high of $28.816 in April 2018.
Since that peak, prices have fallen, due in part to customers switching to other products, and stabilised in the $15 to $16 range. In March this year, Covid-19 caused a fall in share prices to a low of $12.52, but they are already showing signs of rebounding.
The company currently offers dividend payouts at a rate of 4.673%. While their dividend ratio is a little tight, their cash flow is strong, which is good news for investors. At 4.367%, the five year average dividend yield isn’t that much lower than the current dividend yield, which suggests that divided growth hasn’t been that strong.
About Venture Group (V03): Market news and updates
Venture Corporation was incorporated in 1984 and later became the Venture Group in 1989 after a merger. Venture Group is made up of about 30 companies with activities in Southeast Asia, Northeast Asia, The Americas and Europe. Their employee headcount is currently about 12,000.
Their products fall under the advanced industrials, fintech, life sciences and consumer/lifestyle segments. Their products are used in everything from handheld barcode scanners to gaming equipment.
They now work with lots of Fortune 500 corporations and other important technology companies to provide not only manufacturing but also R&D, supply and chain and product management and more.
One of Venture’s biggest strengths is that they’ve built up over decades a solid enterprise that is difficult for competitors to replicate. They also have a competitive price advantage thanks to the quality of their client base. Despite short-term volatility, their long-term future looks bright.
While their stock price has been affected by Covid-19 and US-China trade tensions might also have a negative impact, in the long run they are expected to grow, especially if they continue developing new products and making inroads into new markets.
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