Here’s How Venture Corporation Ltd Makes Its Money

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider. Over the past five years, the company’s stock price has climbed by a decent 31%, which has beaten the market’s 3.7% return.

For current and prospective investors in the company, it is important to have an understanding of Venture’s sources of revenue.

Here’s a table showing the revenue from the five main components of Venture’s business in 2015 and 2014 (the latest numbers from 2016 are not available yet):

Venture Corp revenue table 2015
Source: Venture 2015 annual report

Besides the five components, Venture also segments its business into three areas, namely, Electronics services provider, Retail store solutions and industrial, and Components technology. You can see the three segments’ revenues in 2015 and 2016 in the following table:

Venture Corp segment table 2015
Source: Venture 2015 annual report

From the two tables, there are a few observations we can make.

Firstly, the Electronic services provider segment is the biggest revenue contributor, making up around 68% of Venture’s total revenue in 2015. This segment should account for the majority of the revenue from four of the five components mentioned earlier, with the exception of the Retail Store Solutions & Industrial Products component.

Secondly, the Electronics services provider segment was also the fastest growing segment in 2015, with its revenue up by 12%. The other two segments had mostly flat revenue in the year.

Lastly, within the fastest growing segment, the Test & Measurement/ Medical & Life Sciences/ Others component had the fastest revenue growth in 2015 at 14.3%.

A Foolish conclusion

There are many moving parts when it comes to Venture’s business. By understanding how Venture earns revenue, it can help current and prospective investors in the company to form better judgments on its long-term prospects.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.