- 4Q earnings more than tripled; beat consensus
- FY11 backed by recovery in corporate demand
- S$0.55 DPS (6% div. yield) above expected S$0.50
- Maintain Buy on marginally lower TP of S$11.40 still based on mid cycle PE of 15x FY11
Margin continues to drive outperformance. Net profit of S$54.2m beat street estimate of S$51m but below our aggressive forecast of S$60m. Sales dipped by an expected 23% y-o-y to S$705m, due to the loss of consumer Printing & Imaging business. Notwithstanding higher tax rate of 4.5% from 3% in 3Q10, net margin increased to 7.7% from 7.2% in 3Q10. We believe Venture's strategic business model will sustain such a margin trend going forward and the timely launch of higher value new products at the end of this year should further boost margin.
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