Y Ventures Group

Y Ventures Group | Buy

Target price: S$0.80

April 9 close: S$0.575

UOB Kay Hian, April 9

Given the market volatility, the share price has retraced 29 per cent from its peak, presenting an excellent entry opportunity.

2018 looks to be a promising year as initiatives in the past year are expected to bear fruit. These include the recognition of sales from Faire Leather (of over S$400,000) from its launch in Kickstarter in Nov 17 and its announcement in early January that it had successfully secured over 20 new consumer brands. Y Ventures has also grown its online book distributorship from one to five over the past six months, with meaningful contributions from 2018 onwards.

The potential partnership between Y Ventures and SingPost to develop Aora – a global buying platform focusing on cross-border purchases – could spell a new growth trajectory for the former.

Following our earnings and revenue upgrade, we maintain Y Ventures' target price at S$0.80, based on 2.6 times 2019F P/S (price to sales), which is at a 20 per cent discount to listed peers'.

Our valuation could have upside as we have not assumed an uplift from the new platform since this is only an MOU.

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