MANUFACTURING | Staff Reporter, Singapore

Venture expects boost from US-China trade tariffs

It is aiming for a 6-10% net profit margin range.

Singaporean chipmaker Venture Corporation expects to benefit from the current US-China trade tension due to positive tariffs, CGS-CIMB revealed in a research note after the company’s non-deal roadshow.

However, the company thinks global manufacturing supply chains will take time to change. Venture CEO and chairman Ngit Liong Wong noted that he remains optimistic on the long-term growth outlook for the company.

Also read: Short seller reports put heat on Venture for the rest of H1

Venture generally tries to aim for a 6-10% net profit margin range, added CGS-CIMB analyst William Tng. “This, however, requires the whole corporation to work in tandem, in our view, and Venture would have to continuously add new differentiating capabilities,” he said.

The analyst noted that Venture has more than 50-60 key professionals in the company that are part of the team that is driving future growth for the company.

“Venture will continue to go beyond operational excellence and has allocated resources to identify new business clusters/technology domains where it can add value and justify better margins,” Tng concluded.

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