Notion VTec Berhad - Fire Incident (20 October 2017)

The above company regrets to announce that a fire had occurred at its main manufacturing plant in Klang, Selangor. The incident affects all Kaiten Precision Sdn Bhd, Notion Venture Sdn Bhd and Autic Sdn Bhd (all are wholly-owned subsidiary companies) and the plant belongs to Notion Venture Sdn Bhd located at Lot 6123, Jalan Haji Salleh, Batu 5 1/2, Jalan Meru, 41050 Klang, Selangor.

The consequence of the fire is 9 to 12 months production loss from 500 units of CNC (Computer Numerical Control) machines destroyed by the fire.

Dufu Technology Corporation Bhd is Notion's closest competitor and Dufu will now have an opportunity to absorb the 500 CNC machines output from Notion.

Dufu, through its subsidiaries, is engaged in manufacturing of industrial products, such as die components and precision machining of vice, computer peripherals and parts, for hard disk drive, precision steel moulds and parts and components for electronic equipment and optics, magnetism drivers and parts. Other activities include trading of computer disk-drive related components and investment holdings. Its direct subsidiaries are Dufu Industries Sdn Bhd, Futron Technology Limited and I.P.G. Metal Industry (M) Sdn Bhd.

During NOTION fire incident started at 2:00 pm on 20 October 2017, NOTION share price was nose diving but DUFU share price started to move up, as shown in the following two charts.

DUFU is a good FA company as shown in the following Quarter Result History.

At this moment, Industrial Products and Technology indices continue to break new high even though KLCI continues to break new low. Thus, we should continue to concentrate on these two sectors.

An analyst gives DUFU a target price of RM2.03 which is a 41% potential gain from its 20 October 2017 closing price of RM1.44.