Venture Corporation Limited (SGX: V03) saw its shares plummet 3.08% in post-market trading on Friday. The decline comes as the electronics services provider approaches its dividend payment date amid mixed financial performance.
Venture is scheduled to pay a total dividend of S$0.80 per share for FY2025 on May 19, 2026, representing a 6.7% increase from the previous year. However, the company's financial results show FY2025 revenue fell 7.4% year-on-year to S$2,534.5 million, while net profit declined 7.4% to S$227.0 million. With diluted earnings per share at S$0.787, the dividend payout ratio exceeds 100%.
The stock price movement typically reflects the market adjustment as shares go ex-dividend, where the price is reduced by approximately the dividend amount. Additionally, investors may be concerned about dividend sustainability despite the company's strong net cash position of S$1.28 billion with zero debt. There are early signs of a turnaround, with Q1 2026 revenue growing 1.9% year-on-year driven by robust AI-related infrastructure demand, but continued weakness in other business segments creates uncertainty about the breadth of recovery.
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