KUALA LUMPUR (June 18): Notion VTec Bhd (KL:NOTION), whose share price reached a decade high on Tuesday, said the surge could be attributed to its strong financial performance recovery, an industry turnaround, and heightened investor interest following a report in The Edge Malaysia weekly.

In response to an unusual market activity (UMA) query from Bursa Malaysia Securities, Notion said it recorded positive returns for the first two quarters of the current financial year ending Sept 30, 2024 (FY2024), leading to favourable responses from both retail and institutional investors, indicating confidence in its future prospects.

The group reported a net profit of RM14 million for the second quarter ended March 31, 2024 (2QFY2024), a significant turnaround from a net loss of RM7.77 million a year earlier, driven by higher revenue. Revenue rose 21.8% to RM111.6 million from RM84.7 million, mainly due to strong performance of the electronics manufacturing services and hard disk drive (HDD) segments.

Notion said its shares also benefited from a broader industry turnaround in technology stocks, particularly in the HDD and electronics manufacturing services sectors.

"This increase in sales was highlighted in the commentaries of the unaudited quarterly financial report for the second quarter of FY2024, where we indicated that the second half of FY2024 may outpace the first half," it said in a filing.

Additionally, Notion said the heightened investor interest may have been fuelled by an article in the May 27-June 2 issue of The Edge Malaysia with the headline: Well-diversified Notion VTec seeks next earnings boost.

Notion was among Bursa Malaysia’s top gainers on Tuesday, surging 17 sen or 9.39% to RM1.98 in early trade. This is its highest level since April 22, 2010, and was achieved after seven consecutive days of gains.

The stock closed the day at RM1.96, still up 15 sen or 8.29%, with over 34 million shares changing hands, double its 90-day moving average.

At RM1.96, Notion's market capitalisation has surpassed RM1 billion. The stock has gained over 500% year-to-date.

Notion's largest shareholder is its managing director William Choo Wing Hong, with a 7.29% stake, followed by executive director John Choo Wing Onn with 6.44%.