DBS analyst Amanda Tan maintained a Buy rating on Grand Venture Technology Limited yesterday and set a price target of S$1.12.
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Amanda Tan has given her Buy rating due to a combination of factors that highlight Grand Venture Technology Limited’s (GVT) promising growth trajectory and strategic positioning. The company has shown robust revenue and earnings growth, with a four-year compound annual growth rate of 27% and 20%, respectively. This growth is supported by a strong blue-chip customer base, which includes top-tier companies in both the semiconductor and analytical life sciences sectors. Furthermore, GVT’s entry into the Southeast Asian semiconductor market through a privatisation offer by Aalberts Advanced Mechatronics underscores its strategic importance and potential for expansion.
Another key factor in Amanda Tan’s recommendation is the significant contributions expected from GVT’s involvement in the front-end semiconductor space. The company’s engagement in advanced technologies such as etch, deposition, and high precision metrology is anticipated to drive meaningful revenue growth in the coming years. Despite the cyclicality of the semiconductor industry, the long-term outlook remains positive, with projections of it becoming a trillion-dollar market by 2030. This optimistic industry forecast, coupled with GVT’s strategic initiatives and increased revenue projections, supports the Buy rating with a higher target price of SGD1.12.
JLB’s price has also changed moderately for the past six months – from S$0.835 to S$0.955, which is a 14.37% increase.