Hold Rating for Venture Corporation Amidst Declining Earnings and Uncertain Tariff Environment

John Cheong, an analyst from UOB Kay Hian, maintained the Hold rating on Venture (VEMLF – Research Report). The associated price target is S$12.01.

John Cheong has given his Hold rating due to a combination of factors affecting Venture Corporation’s performance. The company’s first-quarter earnings for 2025 were below expectations, with a reported S$56 million, marking a 7% year-over-year decline and constituting only 22% of the full-year estimate. This shortfall was primarily due to decreased demand in the Lifestyle Consumer technology sector, despite improvements in product reliability and longevity through research and development innovations.
Additionally, the ongoing tariff situation has introduced significant uncertainty in the global economic environment, impacting customer visibility and confidence. While Venture Corporation is making strides in other technology domains like Networking & Communications and Advanced Industrials, and has improved its net margin slightly, the persistent challenges in the Lifestyle Consumer segment and the uncertain tariff landscape contribute to the Hold rating. The company is, however, well-positioned to leverage its global operations to create competitive solutions and expand its market share in various technology domains.

In another report released today, DBS also downgraded the stock to a Hold with a S$11.80 price target.