Venture: Increasingly, customers’ attitude is to “just deal with” economic uncertainties compared to earlier caution with regards to growth uncertainties in Europe and China. Management said it is “business as usual”and added it has not seen any major negative reactions by customers.
The following remain high-growth areas for Venture:
Industrial Products - Seeing a good run-rate and demand coming from high-end communications devices that have pioneer tax exemption.
Life Sciences – Revenue is becoming quite substantial and margins are also high as production content is R&D intensive.
Networking & Communications – Set to continue to perform, given growing demand for carrier and non-carrier server and storage connectivity.
Maybank KE maintains its BUY rating with TP: $10.25, based on 18x FY15 EPS, 10% discount to peer average. Venture currently offers close to 7% dividend yield at this price.
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