Venture on the cusp of new growth cycle after ditching highly volatile product lines

What’s next after shedding consumer electronics?

Venture stands on the cusp of a new growth cycle after successfully shedding its low-margin volatile consumer electronics products.

Data from Maybank Kim Eng show that Venture’s stock is now trading in 5-year-high territory, back to levels before it started its metamorphosis. 

Maybank Kim Eng noted that Venture’s growth will be spearheaded by structural changes--such as new low-cost technologies supplanting current technologies or much-needed infrastructure investments--that should be able to resist periodic market weakness.

“We think Venture is on the cusp of a new growth phase that should be able to resist economic slowdowns better. We forecast low-double-digit EPS growth for FY15E-17E, building on FY14’s turnaround. Continue  to invest for the long term, supported by possible catalysts,” the report stated.