Venture, according to Cheong and Mo, is also able to help customers mitigate geopolitical risks such as by sourcing for components from outside China from suppliers not owned by China-related companies.
Venture is also well positioned to capture several medium-term growth opportunities, such as in the fields of AI data centres, semiconductor equipment, life science and lifestyle consumer technology, the analysts say.
Cheong and Mo project that for the coming 4QFY2024 results, Venture will report earnings of $61 million, down 9% y-o-y but up 1% q-o-q, partly due to the high base last year as well as "softer orders".
For the current FY2025, they expect Venture to improve its earnings by 8% y-o-y.
The company's balance sheet, as expected, remains healthy, which supports its generous and steady dividend payout.
As of 3Q24, Venture had net cash of $1.2 billion, equivalent to just below a third of its market cap. In contrast, its US-listed peers are mostly in net debt positions.
The counter is now trading at 14x FY2025 projected earnings, or 9x ex-cash, and offers a decent dividend yield of 5.9%.
Venture Corp shares changed hands at $12.73 as at 10.08 am, up 0.16%, but down 7.82% in the past 12 months.
