Venture

UOBKayhian on 10 Nov 2014

FY14F PE (x): 15.1
FY15F PE (x): 13.2

Venture reported net profit of S$36.1m for 3Q14, in line with our expectation. Positive
shift in product mix. Venture did not experience the usual seasonal pick-up. Revenue
grew only 1.7% yoy, held back as the US$ depreciated against the S$. Revenue
contribution was stable for most segments, except for Computer Peripherals & Data
Storage, where revenue declined 15.8% qoq as Honeywell acquired Venture’s major
customer Intermec.

Upgrade to BUY. We lift our target price slightly to S$8.25, based on 16.5x 2014F PE
(Benchmark Electronics: 14.9x, Plexus Corporation: 14.5x), justified by its average
forward PE of 16.5x over the past 10 years.