Tuesday, 11 August 2015

Venture Corporation

UOBKyahian on 6 Aug 2015

FY15F PE (x): 14.7
FY16F PE (x): 13.5
Venture reported net profit of S$36.1m in 2Q15, in line with our forecast of S$35.3m. Acceleration in revenue growth. Revenue increased by 10% yoy (1Q15: 3% yoy) due to increased shipment to customers and appreciation of the US Dollar against the Singapore Dollar. The economic environment remains challenging. Venture was able to do well by securing more programmes from existing customers and winning new customers. Maintain BUY. Our target price is S$9.00, based on 16.5x 2015F PE (Benchmark Electronics: 12.8x, Plexus Corporation: 14.2x), justified by its average forward PE of 16.4x over the past 10 years.

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