Notion VTec Bhd is a precision parts manufacturer that is currently poise to grow after a series of unfortunate accidents which includes a major flood at its Thailand facility in 2012, a fire accident in its Klang production plant in 2013, losses from non-core investments in 2014, and losses suffered from its currency-related derivatives exposure in 2015 and 2016.
It’s two main business is manufacturing precision camera barrels for SLR cameras as well as HDD precision parts. Back in 2013, noticing that their SLR parts business is in the decline they went ahead to purchase a silver mine in Australia, through Alcyone Resources Ltd, in an attempt to diversify their business. However that investment did not end well and ended up in receivership 2014 in which, together with a negative business environment cause the company to report a net loss. Further it’s attempted diversification into the smartphone business had also not ended well. The company suffered a net loss of RM27.74 mil in the financial year ended Sept 30, 2014.
Going into 2015 saw one of the most difficult times in the history of the company. It was a period of severe cash flow constraints with hard soul searching by the management of the company. It’s shares traded below 50 cents.
However with perseverance and hard work, and after two years of losses, notion managed to come back with a net profit of RM5.68 mil in FY16 from RM13.02 mil in the previous year, in a successful turn-around story that resulted in the company being awarded with the Best Turnaround category in Focus Malaysia’s Best under Billion Awards (BUBA) 2017 which aims to reward companies which has succeeded in navigating through headwinds to return to profitability.
But luck was not to be with Notion as in 2018, bad fortune strikes again with another factory fire.
The saving grace for Notion Vtec would come in their Automotive business segment, especially it’s business in the Electronic Braking System (EBS).
Recently Notion has also ventured into the Electronic Manufacturing Sector (EMS) with together with the Automotive sector will be the main driver in Notion Vtec’s future growth. They also have new business from their HDD (Toshiba Storage), Automotive (Delphi Technologies) and Camera(Fuji Film).
Notion is expecting EMS to be their main growth driver for Q1’2020 and to set them up into a high growth mode. From their FY2019 revenue of RM238 mil, they are expecting revenue growth into FY2020 revenue to hit RM320 and poised to hit >RM400 mil by FY2021 with is almost a doubling of revenue in just 2 years. If this is the case, Notion VTec might just be the next Pentamaster in the making.

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