UOBKayhian on 4 May 2015
FY15F PE (x): 15.5
FY16F PE (x): 14.2
Venture reported net profit of S$32.6m for 1Q15, below our expectations of S$36.2m.
Muted revenue growth. Test & Measurement/Medical, Venture’s largest segment, grew
7.4% yoy due to strong demand for life science products, such as genome sequencers.
Revenue from the Network & Communications segment grew 16.5% yoy due to product
transfers from Oclaro. There was weakness from retail store solutions as some of its
customers were affected by M&As.
Maintain BUY. Our new target price is S$9.00, based on 2015F PE of 16.5x (Benchmark
Electronics: 14.9x, Plexus Corporation: 14.5x), justified by its average forward PE of
16.4x over the past 10 years.
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