Venture Corporation

Venture Corporation: Reported 3Q results in line with estimates, with market already factoring lower YoY rev as grp pares down its printing & imaging business. Rev at $677.9m was down 26.9%YoY but up 7.3% QoQ, while Net Income at $48.6m was up 27.7%YoY and 6.6%QoQ, as net margins improve to 7.8% vs 4.1%YoY, with grp shifting strategic focus to the higher margin business of ODM and solutions Enterprise...

Result places 9m10 Net Income at $133.9m, up 5.5%YoY. Going forwards, grp maintains positive outlook and expects sequential revenue growth to continue into 4Q, with strong focus on innovation and technological competencies...

We note that grp’s balance sheet remains healthy with a net-cash position of $237.1m, which could be used to fund R&D or strategic acquisitions. With latest results, grp trades at an annualized EPS of 65.1c up 33.4%YoY and at Forward FY10 P/E of 13.9x, in line with Peers average. CIMB has Buy call with $11.98 TP rolling over estimates to 14x FY11 P/E.