Results within expectations. Notion VTEC's minor loss of RM5m for 1QFY12 was within our and market expectations. The operations reported a small RM0.7m core net profit before including a RM5m negative one-off for the floods in Thailand. However, we see a strong rebound in sequential earnings led by the HDD segment, which could prompt consensus to upgrade its FY12 estimates. Additionally, Notion also declared a 3-for-4 bonus issue and 1-for-4 free warrants. Maintain Buy and TP of RM2.50 (unchanged) on 4x EV/EBITDA.

Maybank Research 21 Feb 2012

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