Venture

[winston]

Not vested. From CIMb:-

PE 17; EPS growth -14% last year to +30% forward ?

Expect good yoy growth

Maintain OUTPERFORM. We expect Venture’s core earnings to make a more meaningful recovery, underpinned by a broad-based improvement in its business, including HP’s ODM printer projects.

We leave our FY10-12 profit forecasts intact ahead of its 3Q10 results announcement (after market on 29 Oct). However, we have raised our target price from S$10.91 to S$11.98 as we roll forward our 14x CY11 P/E
to CY12.

This is still based on the lower end of its 10-year historical average in view of its slower earnings-growth prospects.

( Winston: Are they growing at their 10 year historical average over the past few years ? )


We expect catalysts to come from:
1) a continuous recovery of its earnings
2) sustainable decent dividend yields.

http://www.remisiers.org/cms_images/Venture-2810101.pdf

[winston]

Not vested. And there's also a Fund Manager who has a habit of picking up some shares during Window Dressing season. Feel free to check on the SGX website on their purchases


RESEARCH ALERT-OCBC ups Venture target to S$12.10, keeps "buy"

SINGAPORE, Dec 7 (Reuters) - OCBC Investment Research has raised its target price for Singapore's electronics contract manufacturer Venture Corp to S$12.10 from S$10.73 and kept its "buy" rating.

STATEMENT: OCBC said Venture's near-term outlook remains cautiously upbeat while its medium-term outlook is good, as it shifts its strategy towards contract manufacturing higher-margin products for customers.

The brokerage noted that Venture's management has guided for sequential revenue growth in the fourth quarter as most of its customers have maintained positive sentiment.

"On its part, Venture has stocked up some excess inventory with the blessing from customers, which we believe accounts for its slightly more upbeat outlook," said OCBC in a report.

Shares of Venture have risen 2.6 percent so far this year to close at S$9.08 on Monday.


Source: Reuters

[winston]

RESEARCH ALERT- Kim Eng raises Venture target to S$11.80

SINGAPORE, Jan 7 (Reuters) - Kim Eng Securities has raised its target price for Singapore's technology firm Venture Corp to S$11.80 from S$11.30 and maintained its "buy" rating.

STATEMENT: Kim Eng Securities said it expects Venture to show sequential revenue growth of 4 percent in the fourth quarter, while net profit is likely to more than triple from a year ago.

"Although some customer caution still reigned in fourth quarter, we expect strength to have continued in point-of-sales, wireless infrastructure, and test and measurement as enterprise spending should have remained stable against consumer spending," said the brokerage.

Shares of Venture were up 0.21 percent at S$9.50, and have gained 7.3 percent since the start of last year.

Source: Reuters

[winston]

Not vested

Aberdeen bought 149,000 shares, raising their stake from 19.973% to 20.027%

[winston]

not vested

Venture Corp. (VMS SP), Singapore’s biggest listed electronics manufacturing services provider, slid 2 percent to S$6.83, after saying third-quarter net income declined 27 percent from a year earlier to S$35.4 million.

Source: Bloomberg

[winston]

not vested

Electronics contract manufacturer Venture Corp Ltd gained 3.6 percent after several brokerages such as CIMB Research and DBS Vickers upgraded the stock following the announcement of its fourth quarter earnings.

DBS Vickers upgraded Venture to buy with a target price of S$9.60, citing better-than-expected sales and slightly higher margins.

Source: Reuters

[winston]

not vested

STOCKS NEWS SINGAPORE-OCBC upgrades Venture Corp to buy

OCBC Investment Research upgraded Singapore electronics contract manufacturer Venture Corp Ltd to buy from hold and raised its target price to S$9.41 from S$7.83, on signs of an improving global economy.

Venture's shares were up 0.8 percent at S$8.67, and have gained nearly 40 percent so far this year.

OCBC said manufacturing data from China and the U.S. have been stronger than expected, indicating that conditions in the technology and manufacturing sector will improve.

The broker expects Venture's earnings to improve after the seasonally-weak first quarter, helped by new product launches and better relations with its key customers.

"Venture is well-positioned to acquire new customers and gain market share from competitors as it continues its strategic focus on moving up the technological value chain," OCBC said.


Source: Reuters

[winston]

Momentum to pick up from 2H

OUTPERFORM - Upgrade
Share Price S$7.87 - Tgt. S$9.25

--------------------------------------------------------------------------------

Earnings likely reached a bottom in 1Q12, and should improve from here.

We believe investors will be willing to pay a premium for its improved earnings visibility in 2H and solid cash flow business.

1Q12 core profit of S$33.1m is on target, at 19% of our FY12 and 20% of consensus (2H to be stronger).

We maintain our forecasts but upgrade it from Neutral to Outperform for its better visibility and our target to 14x CY13 P/E (5-year average) from 1.1x CY12 P/BV.


Source: CIMB

[winston]

not vested

Venture Corp: FY13 a likely point of inflection

We expect Venture Corp (VMS) to report a muted set of results during the upcoming 3Q12 earnings season, given the continued weak sentiment amongst its key customers.

We forecast flat to low single-digit revenue and PATMI growth for VMS on a QoQ basis in 3Q12.

Nevertheless, we are more optimistic on its financial performance in 4Q12 and FY13. This is underpinned by the launch of new programmes with both existing and new customers.

We retain our forecasts as we had already previously factored in the tepid industry conditions in our assumptions.

Reiterate our BUY rating and S$8.72 fair value estimate. In our opinion, VMS’s attractive prospective dividend yield of 6.9% would provide support to its share price, while also providing an investment merit for investors looking for high-yielding assets given the current low interest rate environment.


Source: OCBC

[winston]

not vested

Venture Corporation (VMS SP) – New Projects To Take Off In 2013

(BUY/S$7.72/Target: S$9.30)
FY11F PE (x): 15.6
FY12F PE (x): 13.2

Sluggish growth in 2H12. Management has guided a slow and flat 2H12 as demand remained sluggish. Customers were conservative and cautious due to the dismal economic climate. Venture intends to maintain a lean cost structure to weather this period of slow growth.

Upgrade to BUY. Venture’s share price has retraced from a recent high of S$8.08. We upgrade recommendation for Venture to BUY due to improved visibility for new product launches.

We have also rolled forward our valuation based on 2013F earnings.


Source: UOBKH