Venture Corp

Venture Corp: Since 3Q14, Venture’s customers have generally turned more positive. On the macro level, tailwinds in 2015 include 1) an overall improving US economy; 2) efforts to develop higher value-added manufacturing customers are starting to bear fruit, and 3) beneficial non-core gains from the stronger US$. CIMB believes that Venture has weathered the worst from consolidation at its customers end. Going forward, while customer M&As cannot be entirely ruled out, the frequency should be low. At the same time, customers have turned more positive. Venture's balance sheet remains in net cash (3Q14: $165m) and CIMB expects its free cashflow to sustain its DPS of 50¢, translating into an attractive 6.4% yield. House expects its share price to re-rate in the coming weeks as investors focus their attention on the dividend.