Here’s why Venture hopes the greenback keeps roaring against the SGD

Its 15.7% revenue growth was due to forex.

While the global electronics provider is expected to see key gains from its Medical & Life Science sub-segment, it certainly can’t discount the robust advantages of a strong US dollar.

According to analysts from OCBC, 90% of Venture’s revenue is denominated in USD, and a further strengthening of USD against SGD will continue to boost its revenue growth ahead.

OCBC says this dependence on the USD was evident in 3Q15, when about 55% of the 15.7% growth in revenue was due to forex movement.

“According to Bloomberg consensus as on 8 Dec, the median forecast is for USD/SGD to strengthen from the spot rate of 1.40 to 1.47 by 4Q16,” OCBC said.

“Looking ahead, we expect VMS to continue its steady growth driven mainly by TMO (especially Medical & Life Science) segment,” they added.