Venture Corp set to benefit from Hewlett Packard split

HP has room for growth in emerging markets.

Mainboard-listed Venture Corporation is set to benefit from Hewlett Packard’s decision to split into two publicly traded companies.

According to Maybank Kim Eng, Venture supplies HP with enterprise printers that are sold to large corporations and SMEs in Singapore, and accounts for 5-6% of Venture’s revenue.

“The split may be good for HP, and by extension, Venture, as it could potentially improve HP’s nimbleness. Printer cartridges generate a lot of cash. Historically, this cash was used by HP for acquisitions unrelated to its printer/PC business. The new standalone company should be able to keep this cash for acquisitions to benefit its printer/PC business directly, which still has room for growth in emerging markets. HP's printer/PC revenue actually grew by 2% in the last 12 months, in contrast to a 4% drop by its enterprise business,” stated Maybank Kim Eng.