DMG & Partners Research in a Feb 28 research report says: "Venture's 4Q earnings of $38.0 million (-29.8% y-o-y) and sales of $632.5 million (+13.9% y-o-y) were in line with our estimates. For the full year, earnings fell 16.8% to $156.5 million, mainly attributable to (1) strengthening of SGD against USD and (2) higher employee benefits expenses.
"Moving on, 1HFY12 results are expected to remain weak as management continues to see tepid growth in business spending. Nonetheless, given improved traction with Venture's key customers, we are cautiously optimistic towards the group's FY2012 performance.
"Despite paying a hefty 55.0 cents per share of dividends (89% of its FY2012 earnings), we still forecast Venture to register a net cash inflow of $56.8 million for FY2012. Target price of $9.04 pegged to 14.6x FY12 earnings (5-yr historical average forward P/E). UPGRADE TO BUY."
"Moving on, 1HFY12 results are expected to remain weak as management continues to see tepid growth in business spending. Nonetheless, given improved traction with Venture's key customers, we are cautiously optimistic towards the group's FY2012 performance.
"Despite paying a hefty 55.0 cents per share of dividends (89% of its FY2012 earnings), we still forecast Venture to register a net cash inflow of $56.8 million for FY2012. Target price of $9.04 pegged to 14.6x FY12 earnings (5-yr historical average forward P/E). UPGRADE TO BUY."
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