Venture could raise dividend payout to $55 cents

Its net cash improved to $337m.

UOBKayHian gauged that Venture could afford to increase dividend payout from 50 S cents/share to 55 S cents/share for 2016 due to the resurgence in growth.

The research house estimated dividend payout ratio at an affordable 86.8%

UOBKayHian notes that working capital shrank by S$66.7m yoy to S$747.8m due to improved collection of receivables and stretching out payables. Free cash flow was S$181.3m during 9M16, up 35.7% yoy.

The improved free cash flow translated to higher net cash of S$337m or S$1.21/share.  

The research house also raised its existing earnings forecasts for 2016 by 3.8% and for 2017 by 6.4% due to the sustainable improvement in margins.