Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED
Nomura Research in an Aug 4 research report says: "2Q11 results highlight that Venture remains on track for faster sales growth as business momentum in the enterprise segment picks up. While margins are seeing pressure, Venture's tight control over operating expenses has helped keep impact on the bottomline minimal.
"With dividend yield at 7.6% backed by FCF yield of 12.1%, we see Venture as an attractively priced defensive stock to own. With continued SGD depreciation hurting margins, we have lowered our FY201-2012F EBIT margin expectations by 20-30bps, resulting in a 4.3%/3.2% cut to our FY2011F/FY2012F net profit estimates.
"With rising macro concerns weighing on peer stock valuations, we also lower our adjusted target FY11F P/BV to 1.7x (earlier: 1.9x) to derive our new target price of $9.60. BUY"
Company Name: VENTURE CORPORATION LIMITED
| Research House: Nomura | Price Call: BUY | Target Price: 9.60 |
Nomura Research in an Aug 4 research report says: "2Q11 results highlight that Venture remains on track for faster sales growth as business momentum in the enterprise segment picks up. While margins are seeing pressure, Venture's tight control over operating expenses has helped keep impact on the bottomline minimal.
"With dividend yield at 7.6% backed by FCF yield of 12.1%, we see Venture as an attractively priced defensive stock to own. With continued SGD depreciation hurting margins, we have lowered our FY201-2012F EBIT margin expectations by 20-30bps, resulting in a 4.3%/3.2% cut to our FY2011F/FY2012F net profit estimates.
"With rising macro concerns weighing on peer stock valuations, we also lower our adjusted target FY11F P/BV to 1.7x (earlier: 1.9x) to derive our new target price of $9.60. BUY"
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