Venture's earnings poised to recover in 2014

Earnings growth predicted to jump 11%.

According to Maybank Kim Eng, it expects Venture to see earnings growth pick up by 11% in 2014E as its businesses recover from the poor performance in 1Q13.

Here's more:

Potential cyclical upturns in the Test & Measurement (accounting for 26% of group revenue) and Retail Store Solutions (30%) segments, as well as fresh opportunities with new customers and new products such as 3D printing, could also result in better-than-expected upside to earnings in 2014E and 2015E.

The exception is the Printing & Imaging segment, where M&A activities involving a key customer Intermec (which was acquired by Honeywell in Sep 2013) could result in a temporary slowdown in volume. However, we estimate that Intermec, as just one of 19 customers in this segment, accounts for only 2-3% of group revenue.