1Q26 Results · In line with expectations
Revenue
S$628.5M
+1.9% y/y reported
+8.2% constant currency
Net profit
S$56.3M
+0.7% y/y
24% of FY26F · 1Q is seasonally the weakest quarter
Net margin
9%
Prior year: 9.1% · Stable
Consistent 9% across FY23–26F
Net cash
S$1.28B
Zero debt
~28% of market cap
Portfolio revenue split — 1Q26
Consumer lifestyle volumes fell after reliability improvements extended product lifecycles
Driven by AI-related infrastructure demand — first y/y growth in three years
Broker recommendations
6 May 2026
UOB Kay Hian
John Cheong, Heidi Mo
+20.3% upside vs S$17.17
Prev TP: S$18.64 → S$20.65
23.7x FY27F PE · 3SD above long-term historical mean
6 May 2026
DBS Group Research
Lee Keng Ling
+27.0% upside vs S$17.17
Prev TP: S$17.90 → S$21.80
24x FY27F PE · near historical peak multiple
8 May 2026
Phillip Securities
Paul Chew
+28.7% upside vs S$17.17
Prev TP: S$16.80 → S$22.10
25x FY26F PE · US-listed peer parity (33x forward PE)
12 Jun 2025
RHB
Alfie Yeo
+-26.6% upside vs S$17.17
Prev TP: S$12.50 → S$12.60
Blended 15x FY25–26F PE · –0.5SD of mean
⚠ Pre-1Q26 report. Estimates and TP reflect June 2025 context.
Broker forecast comparison
Revenue (S$M) — FY24A through FY28F where available
Note: RHB (Jun 2025) excluded from forecast chart — pre-1Q26 estimates not comparable. FY28F only available from UOB Kay Hian.
Business segments
FY25 revenue: S$933.4M
- ·Life science, genomics, molecular diagnostics and related materials technology
- ·Medical devices and equipment
- ·Healthcare & wellness technology, lifestyle consumer tech, health improvement products
Consumer lifestyle volumes fell after reliability improvements to a customer's key product reduced replacement demand. A recovery could emerge in 2HFY26, supported by new product introductions (NPI) aimed at improving user experience. Life science near-term revenue likely broadly flattish; healthy NPI pipeline supports medium-term outlook.
Source: DBS, Phillip Securities
FY25 revenue: S$1601M
- ·Instrumentation, test & measurement technology
- ·Networking & communications, security & safety, building automation, industrial IoT
- ·Advanced payment systems
- ·Advanced industrial technology, computing & productivity systems, printing & imaging, related components technology and others
Direct AI exposure
Networking cards and other electronic content deployed in data-centre infrastructure
Indirect AI exposure
Test & Measurement instrumentation, network-monitoring devices, GPU-related infrastructure, wafer-fab equipment and other electronics throughout the AI infrastructure value chain
Semiconductor optionality
Opportunities broadening beyond wafer-fab equipment into controllers, sensors and other semiconductor-related systems. Revenue contribution still relatively small today.
Source: DBS, Phillip Securities, UOB Kay Hian
Growth drivers
First y/y growth in 3 years
1Q26 marked the first y/y quarterly revenue and net profit growth after three years of negative y/y comparisons. Revenue +1.9% y/y reported, +8.2% on a constant-currency basis.
Source: DBS, Phillip Securities
AI infrastructure — direct and indirect
Direct: networking cards and electronic content in data-centre infrastructure. Indirect: T&M instrumentation, network-monitoring devices, GPU-related infrastructure, wafer-fab equipment.
Source: DBS
Semiconductor broadening
Opportunities broadening beyond wafer-fab equipment into controllers, sensors and other semiconductor-related systems. Revenue contribution still relatively small — early-stage runway.
Source: DBS, Phillip Securities
R&D traction in hyperscale and life science
VMS' R&D labs gaining traction in hyperscale data centres and life science domains with new programs and products. R&D work in consumer lifestyle has advanced to collaborative technology development.
Source: UOB Kay Hian
Portfolio A NPI recovery expected 2H26
Recovery in Consumer Lifestyle segment could emerge in 2HFY26, supported by new product introductions aimed at improving user experience and rebuilding volume momentum.
Source: DBS
Fortress balance sheet — S$1.28B net cash
Net cash S$1.28B, zero borrowings, ~28% of market capitalisation. Supports FY26 DPS of 80 cents (~4.9% yield) and accelerated share buyback programme. S$3.8B returned to shareholders since 1992.
Source: DBS, UOB Kay Hian
Key risks
Global slowdown / business cycle
Vulnerability to business cycles. A broad global slowdown would compress capex across tech domains.
Source: DBS, RHB
USD weakness
Revenue faced a 6.3 percentage-point drag from the weaker US dollar in 1Q26. Further USD weakness keeps reported headline numbers below constant-currency reality.
Source: Phillip Securities
Consumer lifestyle drag continues
Weaker- or later-than-expected recovery in customer orders. If NPI timelines slip, Portfolio A drag extends into FY27.
Source: RHB, DBS
Life science near-term flattish
Near-term Life Science revenue likely broadly flattish despite healthy NPI pipeline. Immediate growth trajectory remains muted.
Source: DBS
Tariff uncertainty
Customers temporarily stalling production to mull over tariff implications. VMS has ~20–30% export exposure to the US market.
Source: RHB, Phillip Securities
Weakening client end-demand
Weakening of clients' end-demand and/or the US Dollar remains the primary downside scenario.
Source: DBS
Balance sheet highlights · Source: UOB Kay Hian, DBS
Net cash
S$1.28B
Zero debt
% of market cap
~28%
Net cash vs mkt cap
FY26F DPS
S$0.80
~4.9% yield
Returned since 1992
S$3.8B
Dividends + buybacks
Peer comparison · Source: RHB (12 Jun 2025)
| Company | Ticker | Mkt cap | Trailing PE | Fwd PE | P/B | Net margin | ROE | Div yield | Net cash/debt |
|---|---|---|---|---|---|---|---|---|---|
| Venture Corp | VMS SP | USD 3.7B | 21.4x | ~20x | 1.7x | 9.0% | 8.5% | 4.9% | Net cash S$1.28B |
| Plexus Corp | PLXS US | USD 3.6B | 22.7x | 19.1x | — | 2.8% | 11% | — | Net debt (low) |
| Jabil Inc | JBL US | USD 18.6B | 25.2x | 19.3x | — | 4.8% | 24% | 0.2% | Net debt (high) |
| Flextronics | FLEX US | USD 16.1B | 18.6x | 14.7x | — | 3.2% | 16% | — | Net debt |
| Celestica Inc | CLS US | USD 14.0B | 35.2x | 24.0x | — | 4.4% | 26% | — | Net debt |
| Sanmina Corp | SANM US | USD 4.7B | 19.3x | 15.7x | — | 2.9% | 11% | — | Net cash (low) |
| Foxconn Technology | — | USD 2.8B | 22.9x | 19.9x | — | 4.7% | 3% | 2.3% | Net cash |
Sources
UOB Kay Hian
6 May 2026
1Q26 Results Note
Analyst: John Cheong, Heidi Mo
DBS Group Research
6 May 2026
1Q26 Results Note — Upgrade to BUY
Analyst: Lee Keng Ling
Phillip Securities
8 May 2026
1Q26 Update — Upgrade to BUY
Analyst: Paul Chew
RHB
12 Jun 2025
Company Update — Pre-1Q26
Analyst: Alfie Yeo
Pre-1Q26 — datedThis dashboard is a research synthesis only and does not constitute investment advice or a recommendation to buy or sell any security. All estimates, target prices, and opinions are those of the named brokers as at their respective report dates. Users should read the full reports and disclosures issued by each broker and seek independent financial advice before making any investment decision.