Monday, June 24, 2013
Venture Corp: OCBC maintains Hold with $7.37 TP. House note that conversation with Venture highlighted that sentiment among its customers has largely remained cautious given the still uncertain macroeconomic conditions. This is in line with tepid macro data points which were released recently. House now expect grp’s 2H13 recovery strength to be weaker than its previous expectations. Hence, pare FY13/14F revenue forecasts by 5.4/1.6%, even as house take into account the recent appreciation of the USD vis-à-vis the SGD. FY13/14F net profit estimates are lowered by 7.8/6.6%, respectively. While house like Venture’s strategy of continuing its acquisition drive for new customers and growing its market share with existing customers by leveraging on its strong design and engineering capabilities, prefer to wait for clearer signs of a rebound in the global economic conditions before turning more positive on the stock.