Venture Corp

Venture Corp: Following Maybank KE's rpt on the group yesterday, UOB Kay Hian maintains its Buy rating on the counter with a TP of $8.70, based on 16x 2014 P/E. UOB KH is cautiously optimistic on the group although catalysts are lacking in the near term as Venture heads into a seasonal lull in 1H14. Customers remain conservative and cautious at this juncture. Nevertheless, prospects for stronger growth in the US economy have brightened due to balance in the housing market and a reduction in fiscal restraint. UOB forecasts that US GDP would expand 3.0% in 2014, faster than the 2.0% in 2013. The stronger economic expansion augurs well for improvement in corporate spending on IT and capex, which is positive for Venture in the medium term. In addition, the production of 3D printers is scheduled to commence at its Shanghai plant in 2H14. The new project provides opportunities to expand to sophisticated high-end models although volume may not be substantial at this stage. Stronger economic expansion is positive for Venture due to better prospects for improvement in corporate spending on IT and capex.