Venture Corp eyes 3D printing as its next cash cow

Here's why this will be a money-milking machine.

According to OCBC Investment Research, there has been much hype surrounding the growth prospects of the 3D printing market, although we believe it is still at a nascent stage of development.

Venture Corp has targeted this exciting segment as one of its new growth drivers, and is already working closely with a leading industry player on the architecture and design of its products (dealing with Fused Deposition Modelling and PolyJet technology).

Here's more:

According to industry watcher Gartner Inc, the combined end-user expenditure on 3D printers is projected to record a buoyant 43% increase to US$412m in 2013, of which 79% is expected to be attributed to enterprise spending.

Growth is forecasted to accelerate by 62% in 2014 to US$669m, led again by enterprise spending (+65%).

Climbing up the value chain

We like Venture Corp (VMS) for its capable management team, diverse customer base and competitive positioning in the electronics solutions provider space. VMS has 183 customers spread across five key business segments as at end 2012, and we believe this figure has since grown closer to 200.

It has constantly strived to move up the technological value chain, offering its designing, material planning, processing, engineering and manufacturing capabilities to its customers, thus allowing it to command stronger margins than its global peers.