Says sector is 30x pe so Notion share price can go to 3.00!

*(NVB MK, CP: MYR0.315, Not Rated; 12MH/L: MYR1.04/0.295)*
*A stellar 1HFY9/24 results; potential turnaround play*
 
Maybank IBG Retail Research
 
*2QFY9/24 results.* Notion Vtec returned to the black in 2QFY9/24 with a PAT of MYR14m (2QFY9/23 LAT: -MYR7.8m). This brought 1HFY9/24 PAT to MYR22.1m (1HFY9/23 LAT: -MYR11.4m). Excluding net exceptional loss of MYR0.4m, its 1HFY9/24 core PATMI amounted to MYR22.5m. An interim dividend of 1sen/sh was declared for the quarter. 
 
*Details.* The stronger 1HFY9/24 results were on the back of: 1) a 22% YoY growth in revenue, mainly driven by higher sales in both of its HDD and EMS segments; and 2) margin expansion. 1HFY9/24 GP margin expanded 15.3ppts YoY to 22.2% in (1HFY9/23: 6.8%) thanks to lower operating expenses.
 
*Prospect.* n other words, Notion offers potential turnaround play. Note that the group was loss-making in two out of the past three years. Moving forward, management expects a stronger 2HFY9/24 driven by growth from all of its business segments. The EMS segment will be supported by new projects secured in FY23. 
 
For its HDD business, growth will be supported by the increased adoption of cloud and enterprise computing, and for artificial intelligence. Meanwhile, outlook for its automotive segment appear to be driven by the persistent adoption of electric vehicles. Notably, the group has received new orders to supply aluminium solenoid valves for its automotive business which will commence operations in 4QFY9/24.
 
*Valuation.* Investors should continue to monitor its upcoming quarterly results. At current price, the stock is trading at 11.5x annualised 1HFY9/24 core EPS of 8.7sen. In comparison, the Bursa Malaysia Technology Index trades at a 2024E PER of 30.3x. Balance sheet wise, Notion has a net cash of MYR17.4m at end-Mar 2024.

Hi paktua,

Here is the latest IR from Notion’s website:

http://www.notionvtec.com/Docs_assets/240521-165433-Q2-FY2024-Presentation-Revised-19-May-2024.pptx

Good luck

hey guys check out their latest updated IR slides
http://www.notionvtec.com/investor_relations/ir_library

https://www.klsescreener.com/v2/announcements/view/3307665

notion announcement regarding gloves

check out notion ppe and ems biz update

http://www.notionvtec.com/Docs_assets/201209-105845-PPE-and-EMS-Business-Update-NVB-8-Dec-2020.pptx

check out their new IR material. after 3 years, notion secured the IQOS project!

http://www.notionvtec.com/Docs_assets/201127-010157-After-3-years,-IQOS-in-hand-26-Nov-2020%5B1%5D.pptx

FDA approval for N95 respirator for notion!

https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfRL/rl.cfm?lid=706616&lpcd=MSH

check out this link. shows that notion is FDA approved for gloves!

https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfRL/rl.cfm?lid=704296&lpcd=LZA

Edge weekly article on Notion page 32 dated 8 Aug 2020

Notion VTec Bhd:

Notion VTec - a supplier of high quality and precision machined components for the automotive, hard disk drive (HDD) and electronics manufacturing services (EMS) segments - ventured into face mask manufacturing this year. Its share price had appreciated 125% yaer todate to RM1.44 (as at Aug 4th), adding RM404 million market capitalisation to value the company at RM724 million.

On July 30, the company announced that its subsidiary Notion Venture Sdn Bhd is now registered with the US Food and Drug Administration to sell 3 and 4 ply surgical face masks for the use of the general public or health personnel. Executive Chairman Thoo Chow Fah tells the Edge that the group is now applying for the CE certification for the European markets as well.

"Malaysia has made it mandatory for face masks to be worn in public, especially in crowded areas, so our supply to the local market is doing well. When all our production lines are operating fully, which is likely in September, we will start to export. We already have enquiries from Singapore, Vietnam and Hong Kong," he says.

The group will be holding an extraordinary general meeting soon, where shareholders are expected to give their approval for the healthcare segment to be made a core business apart from its precision machined components business.

As Notion's healthcare segment will include the manufacturing of 3 and 4 ply surgical face masks, kid's mask, N95 respirators, Polypropylene PP meltblown filter fabric, Polypropylene PP spunbond and Polypropylene PP resin and masterbatch, the group will become an integrated and ones-stop centre for face mask.