Venture

Venture: Unlike past M&As of customers, the latest two – involving two medical customers and a top 20 customer MICROS – could bode well for Venture. Also, a previously-announced M&A involving another top 20 customer, Intermec, may be more positive than expected for Venture. For the medical customers, their merger will create the biggest medical device company in the world. On the other hand, Oracle’s acquisition of MICROS will strengthen the latter’s position without threatening its hardware point-of-sale (POS) system, which Venture is a supplier. Lastly, Maybank-KE had previously expected order volumes for Intermec to fall following the acquisition by Honeywell Scanning and Mobility. However, the impact is less adverse than originally feared. As such Maybank-KE raises FY15E earnings forecast by 1% to account for this. Maybank-KE maintains Buy with increased TP of $7.78.