Grand Venture Technology Limited (JLB) AI Stock Analysis

• Market Cap: S$315.54M
• Dividend Yield: 0.32%
• Average Volume (3M): 232.39K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.10
• Revenue Growth: 47.45%
• EPS Growth: 51.05%
• Country: SG
• Employees: 1,717
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): <0.01
• Shares Outstanding: 339,289,430
• 10 Day Avg. Volume: 147,590
• 30 Day Avg. Volume: 232,386
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.12
• Price Target Upside: 20.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: S$1.00 ▲(7.53% Upside)

The stock's overall score is driven by strong financial performance, despite challenges in profitability and leverage. Technical analysis indicates potential short-term risks due to overbought conditions. Valuation metrics suggest the stock is relatively expensive with limited dividend appeal.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, enhancing the company's competitive position and long-term sustainability.

Market Expansion

The secondary listing on Bursa Securities aims to broaden the investor base and increase liquidity, supporting future growth and market expansion, particularly in the semiconductor segment.

Cash Generation

Consistent positive free cash flow indicates strong cash generation capability, providing financial flexibility for reinvestment and growth initiatives.

Negative Factors

EBIT Margin Decline

Declining EBIT margins suggest potential challenges in maintaining operational efficiency, which could impact profitability and long-term financial health.

Rising Debt Levels

Increased leverage may strain financial stability and limit strategic flexibility, posing risks if not managed effectively.

Cash Flow Management

Inconsistent cash flow growth and low cash conversion efficiency highlight potential areas for improvement in cash management, affecting long-term financial resilience.

Grand Venture Technology Limited Business Overview & Revenue Model

Company Description

Grand Venture Technology Limited engages in manufacturing and selling precision machining and sheet metal components and modules in Singapore, Malaysia, the United States, China, and internationally. The company operates in three segments: Semiconductor; Life Sciences; and Electronics, Medical and Others. The Semiconductor segment manufactures precision machined components, sheet metal manufacturing, and mechatronics assembly. The Life Sciences segment manufactures components of mass spectrometers and liquid chromatography instruments used for various laboratories testing and pharmaceutical applications. The Electronics, Medical and Others segment manufactures consumable parts; manufactures and assembles surgical microscopes; and assembles modules for customers in industrial automation and manufacturing equipment businesses. It also offers precision machining services, such as metals, engineering plastics, ceramic, quartz, and sub-micron machining, as well as manufactures vacuum parts; sheet metal fabrication, including cutting/laser cutting, CNC bending and turret punching, welding and robotic magnesium inert gas welding, and wet painting/powder coating; and modular, electromechanical, mechatronics, and cleanroom assembly services, as well as testing services. The company was incorporated in 2012 and is headquartered in Singapore.

How the Company Makes Money

Grand Venture Technology Limited generates revenue through the manufacturing and sale of precision tools and components tailored to the needs of its clients in sectors such as semiconductor, electronics, and life sciences. The company's key revenue streams include custom manufacturing contracts, where it collaborates closely with clients to produce bespoke solutions, and standard product offerings that cater to broader market demands. Significant partnerships with industry leaders enhance its market reach and contribute to sustained earnings by securing long-term contracts and joint development projects. Additionally, the company invests in research and development to continuously improve its product offerings and maintain a competitive edge in the technology-driven manufacturing sector.

Grand Venture Technology Limited Financial Statement Overview

Summary

Grand Venture Technology Limited shows strong revenue growth with a healthy gross profit margin. However, the decline in EBIT margins and increased leverage indicate potential challenges in profitability and financial stability.

Income Statement

Grand Venture Technology Limited has shown robust revenue growth, notably from $40.1 million in 2019 to $159.5 million in 2024. The gross profit margin has remained healthy, albeit with some fluctuations, demonstrating strong operational efficiency in a competitive industry. However, the EBIT margin has seen a decline in 2024 compared to prior years, indicating potential challenges in operating profitability.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio that has increased over the years, reflecting increased leverage. The return on equity is respectable, suggesting effective use of shareholders' funds, though the high debt level poses risks. The equity ratio indicates a balanced asset structure, but the rising debt could impact financial stability if not managed carefully.

Cash Flow

Despite fluctuations in operating cash flow, the company has managed positive free cash flow in recent years, signaling an improving cash generation capability. However, the free cash flow growth has been inconsistent, and the free cash flow to net income ratio suggests limited cash conversion efficiency. These factors highlight potential areas for cash flow management improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	159.51M	111.30M	131.09M	116.26M	61.40M
Gross Profit	39.02M	27.82M	35.80M	37.69M	18.93M
EBITDA	29.20M	23.02M	30.21M	31.51M	14.19M
Net Income	10.89M	5.54M	13.32M	17.56M	5.22M
Balance Sheet
Total Assets	264.63M	203.38M	204.07M	182.87M	94.40M
Cash, Cash Equivalents and Short-Term Investments	22.29M	19.15M	23.15M	46.34M	7.49M
Total Debt	84.29M	55.85M	59.92M	51.43M	43.82M
Total Liabilities	132.00M	84.77M	85.99M	78.27M	57.54M
Stockholders Equity	132.63M	118.61M	118.08M	104.61M	36.86M
Cash Flow
Free Cash Flow	280.00K	5.44M	3.69M	-13.16M	-3.47M
Operating Cash Flow	10.90M	15.67M	13.43M	3.10M	3.96M
Investing Cash Flow	-25.60M	-9.73M	-15.80M	-15.96M	-7.34M
Financing Cash Flow	14.90M	-9.54M	-19.93M	51.78M	5.02M

Grand Venture Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:JLB, the sentiment is Positive. The current price of 0.93 is above the 20-day moving average (MA) of 0.93, above the 50-day MA of 0.93, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:JLB.

Grand Venture Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLB	64 Neutral	S$315.54M	32.40	7.60%	0.32%	47.45%	51.05%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
UMSSF	―	$768.88M	26.70	9.87%	―	―	―
MQR1	―	€209.10M	9.30	22.42%	―	―	―
BIX	63 Neutral	S$47.50M	36.54	2.00%	3.51%	4.89%	―
E28	63 Neutral	S$597.93M	15.37	9.11%	1.86%	11.57%	0.89%
AWX	57 Neutral	S$476.33M	34.94	2.87%	―	4.60%	―

Grand Venture Technology Limited Corporate Events

Grand Venture Technology Engages in Potential Transaction Talks

Grand Venture Technology Limited has announced that it is in ongoing confidential discussions with a third party regarding a potential transaction that might lead to an offer for the company’s shares. However, there is no certainty that these discussions will result in a transaction. The company advises shareholders and potential investors to exercise caution and consult professional advisors when dealing with its shares or securities.

The most recent analyst rating on (SG:JLB) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Grand Venture Technology Limited stock, see the SG:JLB Stock Forecast page.

Grand Venture Technology Limited Reports 1Q25 Business Update

Grand Venture Technology Limited has released a business update for the first quarter of 2025, highlighting its financial performance compared to the same period in 2024. The update provides insights into the company’s operational progress and financial health, which could impact its industry positioning and stakeholder interests.

The most recent analyst rating on (SG:JLB) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Grand Venture Technology Limited stock, see the SG:JLB Stock Forecast page.

Grand Venture Technology Engages in Confidential Transaction Talks

Grand Venture Technology Limited has entered into confidential discussions with a third party regarding a potential transaction that could lead to an offer for the company’s shares. As a result, the company has paused its proposed secondary listing on Bursa Malaysia Securities Berhad and will continue to evaluate its options with advisors. Stakeholders are advised to exercise caution and consult professionals when dealing with the company’s shares.

The most recent analyst rating on (SG:JLB) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Grand Venture Technology Limited stock, see the SG:JLB Stock Forecast page.

Grand Venture Technology Announces Share Pool Enlargement and Secondary Listing

Grand Venture Technology Limited announced plans to enlarge its pool of shares through a placement of new shares in conjunction with a proposed secondary listing on the Main Market of Bursa Securities. This move is expected to positively impact current shareholders by broadening the company’s investor base, increasing share liquidity, and providing additional platforms for future fundraising. The raised capital will support the company’s business expansion, particularly in the semiconductor segment.

The most recent analyst rating on (SG:JLB) stock is a Buy with a S$0.58 price target. To see the full list of analyst forecasts on Grand Venture Technology Limited stock, see the SG:JLB Stock Forecast page.