SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Grand Venture Technology Ltd / Equity Bottom-Up

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<div><em><strong>These equity research reports are not written by the SGX</strong>.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></div>
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<h2>Grand Venture Technology Ltd</h2>
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<p><strong>Revenue growth offsets margin pressure</strong></p>
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<p>1HFY20 revenue and net profit were both above expectations, at 65% of our full-year forecasts.</p>
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<p>Although gross profit margin fell to 29.8% in 1H20 vs. 39.2% in 1H19, yoy revenue growth of 48.9% helped gross profit improve 13.3% yoy in 1H20.</p>
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<p>Reiterate Add. Re-rating catalyst is normalisation of gross profit margin as supply chain disruptions are resolved post Covid-19.</p>
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<p><strong>1HFY20 results above expectations<br></strong>1H20 revenue grew 48.9% yoy to S$26.9m, while net profit grew 46.2% yoy to S$2.2m. At 65% of our full-year forecasts, both revenue and net profit were above our expectations. Due to the disruptions to the supply chain from the Covid-19 pandemic, gross profit margin in 1H20 fell to 29.8% versus 39.2% in 1H19. Gross profit margin in the semiconductor segment was 28.0% in 1H20 versus 39.4% in 1H19, while in the life sciences, electronics and others segment, the gross profit margin in 1H20 was 33.7% versus 39.0% in 1H19. The semiconductor segment accounted for a higher 67.6% of 1H20 revenue (1H19: 53.8%), while the life sciences, electronics and others segment accounted for a lower 32.4% of 1H20 revenue (1H19: 46.2%). No interim dividend was declared. As at end-Jun 2020, the net gearing position was 0.82x.</p>
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These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.

Grand Venture Technology Ltd




Revenue growth offsets margin pressure






1HFY20 revenue and net profit were both above expectations, at 65% of our full-year forecasts.


Although gross profit margin fell to 29.8% in 1H20 vs. 39.2% in 1H19, yoy revenue growth of 48.9% helped gross profit improve 13.3% yoy in 1H20.


Reiterate Add. Re-rating catalyst is normalisation of gross profit margin as supply chain disruptions are resolved post Covid-19.






1HFY20 results above expectations 1H20 revenue grew 48.9% yoy to S$26.9m, while net profit grew 46.2% yoy to S$2.2m. At 65% of our full-year forecasts, both revenue and net profit were above our expectations. Due to the disruptions to the supply chain from the Covid-19 pandemic, gross profit margin in 1H20 fell to 29.8% versus 39.2% in 1H19. Gross profit margin in the semiconductor segment was 28.0% in 1H20 versus 39.4% in 1H19, while in the life sciences, electronics and others segment, the gross profit margin in 1H20 was 33.7% versus 39.0% in 1H19. The semiconductor segment accounted for a higher 67.6% of 1H20 revenue (1H19: 53.8%), while the life sciences, electronics and others segment accounted for a lower 32.4% of 1H20 revenue (1H19: 46.2%). No interim dividend was declared. As at end-Jun 2020, the net gearing position was 0.82x.

















Non-SGX Report: Grand Venture Technology Ltd: Revenue Growth Offsets Margin Pressure

Singapore

Grand Venture Technology Pte. Ltd. manufactures fabricated metal products. The Company focuses on manufacturing precision machining and sheet metal components for the semiconductor, analytical and life science, oil and gas electronics, and industrial automation industries. Grand Venture Technology serves customers in Singapore.

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Grand Venture Technology Ltd (GVTL SP)

Non-SGX Report: Grand Venture Technology Ltd: Revenue Growth Offsets Margin Pressure

These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors....

Singapore Exchange Ltd (SGX)

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