Date: 28/02/2022
The Positive + Recovery in revenues. Revenue rebounded 9% YoY to S$905mn, just 3% shy of pre-pandemic levels. We believe some of the growth was driven by spill-over from prior quarter shutdowns in Malaysia. Growth was across all verticals.
The Negative – Cash-flow generated lower due to inventory build-up. Free cash flow generated in FY21 was S$91mn, a sharp drop from FY20 S$425mn. Around $382mn of working capital has been deployed to build up inventory to cope with component shortages. FY21 capex was a record low of S$11mn. Net cash in the balance sheet stands at S$807.9mn (FY20: 928.7mn).
Outlook Venture guided that demand is robust based on customer orders and forecast across all sectors. Notable strength is from analytical instruments, gene sequencing, instrumentation and lifestyle and wellness products.
Upgrade to ACCUMULATE from NEUTRAL with a higher TP of S$20.00 Our FY22e revenue is unchanged but PATMI is raised by 4%. Source: Phillip Capital Research - 28 Feb 2022 Labels: Venture More articles on Trader Hub >>
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