Tng’s confidence stems from Venture’s annual report issued on April 2 which shares how the company has been “strengthening” foundations for the next phase of growth as it “advances momentum” across multiple technology domains and deepens strategic customer collaborations.
For the networking and communications domain, Venture shared that it is ramping up activities in the hyperscale data centre space and expanding its network connectivity solutions. Meanwhile in the test and measurement segment, management guided that there has been new product wins and market share gains with customers.
On the semiconductor-related equipment front where Venture is a leader in high value-add and complex printed circuit board assembly modules for customers such as Nasdaq-listed Lam Research, the company is “making progress”. For the lifestyle consumer domain, Venture states that it is working closely with a customer to co-develop next generation products.
Tng expects recovery in the lifestyle consumer and test and measurement segments to support a stronger 2HFY2026 performance. Forecasting earnings per share to grow by an average of 8% from FY2026 to FY2028, he increases his TP to $21.78, based on 23 times of FY2027 forecasted P/E. He adds that the EQDP rally is fueling this valuation which is three standard deviations above the 20-year average (2007 to 2026 forecasted).
See also: UOBKH's Loh trims CLI's target price over China drag
Rerating catalysts for Tng include new products launched by customers which increase profitability and better-than-expected revenue outlook as companies diversify their production from China to Malaysia, creating more revenue opportunities for Venture.
Shares in Venture are up by 66 cents, or 4%, to $16.86 as at around 11.07 am on May 4.
Earlier, Tng had made “bold, on-point” calls on AEM Holdings and ISDN Holdings.
