Strong momentum to continue in 2H22
Impressive 1H22 results with growth from all segments; above expectations
Impressive 1H22 performance even though supply disruptions remain. Despite the ongoing global supply chain challenges and periodic lockdowns in China in 2Q22, Venture reported 1H22 revenue of S$1,796.1m, up 25.4% y-o-y. The group saw broad-based expansion in all technology domains. In particular, Healthcare & Wellness, Life Science & Genomics and Test & Measurement Instrumentation technology domains registered strong performance.
An interim DPS of 25Scts was declared, similar to 1H21.
Healthy margins despite rising inflationary pressures. 1H22 profit before tax (PBT) grew 31.6% y-o-y to S$212.8m, translating to a healthy PBT margin of 11.8% in 1H22, vs 11.3% in 1H21. This was achieved on the back of the group’s differentiating R&D capabilities and continued productivity gains despite rising inflationary pressures.
1H22 net profit jumped 24% y-o-y, above expectations; tax rate still high. Net profit grew 24.1% y-o-y to S$174.3m, translating to a healthy net profit margin of 9.7% despite a higher effective tax rate. Tax rate remains high, at 18% for 2Q22, same as 1Q22 but much higher than 13.1% for FY21. The higher tax rate was mainly from the Singapore operations. For 2Q22, net profit came in at S$90.3m (+20.2% y-o-y; +7.5% q-o-q), with net margin of 10.0%, an improvement from 9.5% in 1Q22. Overall, 2Q22/1H22 net profit account for 26%/50% of our full year forecasts, above expectations, as 1H typically accounts for about 45% of the full year number.