Venture: CIMB hosted NDR for Venture. Less than 15% of Venture’s manufacturing content is derived from Singapore, as such Singapore NODX has not been an effective leading indicator of performance. 60% of shipments are to US, 25-30% to Europe, and rest to APAC. Views that global economy is generally benign, though Europe could still be a concern.
Top 10 customers make half of sales. Growth potential in Life Sciences and 3D Printing. Venture focuses on niche and less price sensitive product, where it can offer value-add to justify pricing.
Venture opines that a fragmented share ownership may expose the company to some M&A risk while its strong cashflow generation capacity could attract private equity players.
The house rolls over to CY17 forecasts and raises TP to $9.37, from $8.56, still premised on 14x earnings. The house maintains Add on Venture
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