Venture’s transformation more than meets the eye

SINGAPORE (Oct 10): A shift in product offerings towards test & measurement, and medical and life science equipment is opening up new opportunities for Venture Corp, says UOB Kay Hian who is sticking to its “buy” call with a higher target price of $10.30.

Last year, Venture managed to secure six new customers by focusing on product development in these two high-end sectors. This would contribute to long-term growth beyond 2017.

This year, there is US-based customer Danaher which recently acquired an air and water filter manufacturer. In an Oct 6 note, analyst Jonathan Koh says this will provide Venture with the opportunity to expand into the US$20 billion ($27.5 billion) filtration market. And while demand for advanced purification systems is driven by biomedical companies, Koh believes the same technologies could be applied to food processing and quality.

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