■ Increasingly, customers’ attitude is to “just deal with” the economic uncertainties compared to earlier caution.
■ Impact from recent M&A among customers expected to remain beneficial for Venture.
■ Maintain BUY, with unchanged forecasts and Street-high TP of SGD10.25, based on 10% discount to peer average.
Caution among customers earlier this year has turned into positive attitude as clients are learning to “just deal with it”. Earlier this year, growth uncertainties in Europe and China had raised concerns among customers. Management said it is “business as usual” and added it has not seen any major negative reactions by customers. Therefore, we remain optimistic on Venture’s business trajectory this year.
What’s Our View
Maintain BUY with TP unchanged at SGD10.25, based on 18x FY15 EPS, or 10% discount to peer average. Venture offers close to 7% dividend yield at this price. We think DPS could be raised back to SGD0.55 this year. (Read Report)
Source : Maybank Kim Eng Research