Venture isn’t a volume player and that’s perfectly fine, say analysts

It’s slowly finding out that diversity is strength.

The high-tech design and manufacturing firm prides itself on high-value and highmix electronic products, and analysts say its diversification is a good sign.

According to a report by UOB Kay Hian, Venture is selective and focuses on businesses that are sustainable. It also has a total of 192 customers.

“Its largest customer accounted for only 10-15% of revenue. Its top-10 customers accounted for 45- 50% of revenue. It aims to maintain net margin above a minimum of 5%,” UOB Kay Hian said.

UOB Kay Hian says Venture is on good footing to weather the possible slowdown owing to its well-diversified customer base, compounded by its ability to create stickiness in customer relationships.

“It forges close partnership with customers by supporting them during the front-end product development stage to reduce time-to-market. Its engineers also help customers miniaturise their products and lower production costs by reducing component count,” UOB Kay Hian said.

Meanwhile, existing customers also provided a huge chunk of Venture’s growth, gaining market share by securing a larger allocation of production volume and winning new programs from existing customers, according to UOB Kay Hian.

“There were also contributions from new customers. About two-thirds of the increase in business volume came from existing customers and the remaining one-third from new customers,” they added.