Venture Corp Ltd

141 W Jackson Blvd Ste 3050 The Chicago Board of Trade Building Chicago, IL 60604 USA Tel +1-312 356 9000 Fax +1-312 356 9005 Website: www.phillipusa...

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Venture Corp Ltd Analyst Briefing Key Takeaways

2 March 2015

SINGAPORE | TECHNOLOGY | NON-RATED NOTE Highlights  

Strongest quarterly results in past eight quarters; FY14 results in-line with consensus. Strong boost from Test & Measurement / Medical & others product segment, driven by new customer acquisitions. Guided for long-term sustainable growth but wary of slowdown impact from Europe and Asia in the short-term.



SGD 8.16 N/A N/A N/A

LAST DONE PRICE FORECAST DIV TARGET PRICE TOTAL RETURN COMPANY DATA

275

O/S SHA RES (M N) : M A RKET CA P (USD mn / SGD mn) :

Results at a glance FYE Dec (SGD mn)

8.30 / 7.15

52 - WK HI/LO (SGD) :

4Q14

Pri nting a nd i ma gi ng

66

Networki ng & 114 communi ca tions Retai l s tore s ol utions 201 & i ndus tri a l Computer peri phera l s 72 & Da ta s tora ge Tes t & Mea s urement / 221 Medi ca l / Others Revenue 675 EBITDA 53 Net i ncome 39 Source: Compa ny, Phi l l i p Securi ties

4Q13 y-y(%)

3Q14 q-q(%) Comments

58

14.5

70

(5.8)

106

8.3

108

5.7

196

2.3

181

10.9

87

(17.0)

47

54.6

176

25.5

192

14.9

623 8.3 599 12.7 51 4.4 50 6.8 38 3.5 36 8.8 Res ea rch (Si nga pore)

0.36

3M A verage Daily T/O (mn) :

MAJOR SHAREHOLDERS (%)

ABERDEEN SPRUCEGROVE INVESTMENT MGMT NGIT LIONG WONG

Extended YoY decl i ne for 3 cons ecutive qua rters Strong growth dema nd, boos ted by new cus tomer a cqui s i tions Strong underl yi ng dema nd hi gher R&D expens e YoY norma l i s ed effective tax ra te

20.82% 8.04% 6.97%

PRICE PERFORMANCE (%) 1M T H

3 M TH

1Y R

COM P A NY

(0.1)

6.0

15.0

STI RETURN

0.4

1.9

12.8

PRICE VS. STI 8.50

Chart: Net profits YoY growth (%)

1645 / 2245

PATMI (S$mn)

8.00

YoY growth (%)

15 7.50

10 35 5

38 31

30

34

36

39

7.00 Mar-14

Sep-14 Jun-14 VMS SP Equity

Mar-15 Dec-14 FSSTI Index

So urce: B lo o mberg, P SR

0

KEY FINANCIALS

-5

SGD M N

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

Source: Company, Phillip Securities Research (Singapore)

Key takeaways from results briefing    

Management seeing negative impact fromEuro economy spillover to 1H2015. Profit growth mainly driven by strong underlying demand as strengthening of US dollar do not provide significant growth contribution. Group to focus on driving output productivity through R&D innovations and upgrading of operational skills among staff. Higher R&D expenses incurred due to new projects undertaken during the year. Management expect the new projects would hopefully yield results by 2016.

No stock rating or price target provided, as we do not have coverage on Venture Corp Ltd.

Page | 1 | PHILLIP SECURITIES RESEARCH (SINGAPORE) MCI (P) 019/11/2014 Ref. No.: SG2015_0081

F Y 12

F Y 13

F Y 14

2,432

2,388

2,330

2,465

EB ITDA

212

187

181

195

NP A T (adj.)

157

134

131

140

EP S (adj.)

0.57

0.49

0.48

0.51

P ER, x (adj.)

10.8

16.4

16.2

15.2

0.9

1.2

1.2

1.1

DP S

0.55

0.50

0.50

0.50

Div Yield, %

8.9%

6.3%

6.5%

6.5%

ROE, %

8.5%

7.3%

7.2%

7.6%

Revenue

P /B V, x

So urce: Co mpany Data

Colin Tan

Investment Action

F Y 11

(+65 6531 1221)

[email protected]

VENTURE CORP LTD NON-RATED NOTE Contact Information (Singapore Research Team) Management Chan Wai Chee (CEO, Research - Special Opportunities)

Macro | Equities Soh Lin Sin Bakhteyar Osama

[email protected]

Research Operations Officer Jaelyn Chin [email protected]

Market Analyst | Equities Kenneth Koh [email protected]

US Equities Wong Yong Kai

[email protected]

Real Estate Caroline Tay

REITs Dehong Tan

[email protected]

[email protected]

Finance | Offshore Marine Benjamin Ong [email protected] Telecoms | Technology Colin Tan

[email protected]

[email protected] SINGAPORE Phillip Securities Pte Ltd Raffles City Tower 250, North Bridge Road #06-00 Singapore 179101 Tel +65 6533 6001 Fax +65 6535 6631 Website: www.poems.com.sg

[email protected]

Transport & Logistics Richard Leow, [email protected] CFTe Contact Information (Regional Member Companies) MALAYSIA Phillip Capital Management Sdn Bhd B-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel +603 2162 8841 Fax +603 2166 5099 Website: www.poems.com.my

HONG KONG Phillip Securities (HK) Ltd 11/F United Centre 95 Queensway Hong Kong Tel +852 2277 6600 Fax +852 2868 5307 Websites: www.phillip.com.hk

JAPAN Phillip Securities Japan, Ltd. 4-2 Nihonbashi Kabuto-cho Chuo-ku, Tokyo 103-0026 Tel +81-3 3666 2101 Fax +81-3 3666 6090 Website: www.phillip.co.jp

INDONESIA PT Phillip Securities Indonesia ANZ Tower Level 23B, Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia Tel +62-21 5790 0800 Fax +62-21 5790 0809 Website: www.phillip.co.id

CHINA Phillip Financial Advisory (Shanghai) Co Ltd No 550 Yan An East Road, Ocean Tower Unit 2318, Postal code 200001 Tel +86-21 5169 9200 Fax +86-21 6351 2940 Website: www.phillip.com.cn

THAILAND Phillip Securities (Thailand) Public Co. Ltd 15th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak, Bangkok 10500 Thailand Tel +66-2 6351700 / 22680999 Fax +66-2 22680921 Website www.phillip.co.th

FRANCE King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008 Paris France Tel +33-1 45633100 Fax +33-1 45636017 Website: www.kingandshaxson.com

UNITED KINGDOM King & Shaxson Capital Limited 6th Floor, Candlewick House, 120 Cannon Street, London, EC4N 6AS Tel +44-20 7426 5950 Fax +44-20 7626 1757 Website: www.kingandshaxson.com

UNITED STATES Phillip Futures Inc 141 W Jackson Blvd Ste 3050 The Chicago Board of Trade Building Chicago, IL 60604 USA Tel +1-312 356 9000 Fax +1-312 356 9005 Website: www.phillipusa.com

AUSTRALIA Phillip Capital Limited Level 12, 15 William Street, Melbourne, Victoria 3000, Australia Tel +61-03 9629 8288 Fax +61-03 9629 8882 Website: www.phillipcapital.com.au

SRI LANKA Asha Phillip Securities Limited No-10 Prince Alfred Tower, Alfred House Gardens, Colombo 03, Sri Lanka Tel: (94) 11 2429 100 Fax: (94) 11 2429 199 Website: www.ashaphillip.net

TURKEY PhillipCapital Menkul Degerler Dr. Cemil Bengü Cad. Hak Is Merkezi No. 2 Kat. 6A Caglayan 34403 Istanbul, Turkey Tel: 0212 296 84 84 Fax: 0212 233 69 29 Website: www.phillipcapital.com.tr

DUBAI Phillip Futures DMCC Member of the Dubai Gold and Commodities Exchange (DGCX) Unit No 601, Plot No 58, White Crown Bldg, Sheikh Zayed Road, P.O.Box 212291 Dubai-UAE Tel: +971-4-3325052 / Fax: + 971-4-3328895 Website: www.phillipcapital.in

INDIA PhillipCapital (India) Private Limited No.1, 18th Floor Urmi Estate 95, Ganpatrao Kadam Marg Lower Parel West, Mumbai 400-013 Maharashtra, India Tel: +91-22-2300 2999 / Fax: +91-22-2300 2969 Website: www.phillipcapital.in

Page | 2 | PHILLIP SECURITIES RESEARCH (SINGAPORE)

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