MANUFACTURING | Staff Reporter, Singapore

Venture Corp to reap yields as USD gains strength

Around 90% of its revenue are denominated in USD.

The recent spate of events affecting the global economy, including Brexit and Trump win, has certainly cast clouds on high-tech design and manufacture firm Venture Corp. But the recent spike in US dollar strenght has proven to be beneficial to the firm according to OCBC Investment Research.

OCBC said Venture will surely benefit from the said spike, as around 90% of its revenue is denominated in USD.

"This could further boost its sales should strength in the USD sustain," the research firm noted.

More so, Venture will receive additional boost due to the weakening of Malaysian Ringgit. OCBC argues that this is significant as around 60% of its manufacturing operations are done in Malaysia.

"Hence, we believe if the weakness of MYR against SGD persists, VMS may benefit from lower operating expenses, and could potentially see some lift in earnings as a result," OCBC explained.

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