Is Venture Corp worth looking into?

Singapore's Venture Corp Ltd provides contract manufacturing services to electronics companies worldwide, by trading and manufacturing electronics and computer-related products, developing and marketing colour imaging products for label printing.

Despite their Shanghai operations coming to a stop in March due to the strict COVID-19 regulations in major parts of China, its impact on Venture Corp was minimal. Following the release of their 2022 Q1 financial report, analysts have a positive outlook on the tech organisation, as they reported stronger-than-expected financial results for its first quarter of 2022. Analysts form major financial institutions such asPhillip Securities Research, upgraded its call on the counter to “buy” from “accumulate”, noting that its “current share price offers a 5 per cent dividend yield with an attractive unlevered return on equity and a strong balance sheet.” Another is DBS analyst Ling Lee Keng, who has a “buy” call on the counter, as she remains positive on Venture’s ability to attract quality customers.

Venture should also see a rebound from its factory shutdown in Malaysia and gain more traction from its new products in life science, lifestyle and wellness.

Considering the supply chain disruptions occuring due ot the Russia-Ukraine invasion, inflationary pressure and higher tax rates, could Venture Corp really mitigate the current global events and return to pre-pandemic levels?

Let me know what you guys think!

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