Notion VTec; Buy; RM0.81
Price Target: RM0.90 (Under review); NVB MK
Recovery to continue in 2HCY13

9MFY13F earnings below our estimates but in line with market. Core net profit rose >100% q-o-q; received RM36m in insurance claim for YTD exceptional gains of RM8m. Expect 2HCY13 to improve on the back of growing enterprise HDD demand and DSLR product launches. Maintain BUY, TP under review.

Efficient E-Solutions; Trading Buy; RM0.13
Targeted Resistance Thresholds: RM0.17 (immediate), RM0.20 (next); EES MK
Rebound in sight

Efficient E-Solutions (market cap of RM92m) is poised to stage a rebound as investors hunt for fundamentally strong small-cap companies. The Group – which provides business process outsourcing (BPO) services – could see a gradual earnings recovery after being hit by tough industry developments last year. An added appeal is its cash and cash equivalents backing of 7.4 sen per share, which constitutes more than half of its existing share price. Future excitement may also come through its potential tie-ups
with its major shareholder Singapore Post (holding a 20.8% equity interest).

From a technical perspective, the stock – after plunging from RM0.245 in Jul 2011 to a trough of RM0.12 in May this year – is due for a technical rebound soon. Its share price will probably advance to challenge our targeted resistance thresholds of RM0.17 (immediate) and RM0.20 (next), offering potential upsides of 31% and 54%, respectively. Trading Buy.

Source: HwangDBS Research - 16 Aug 2013