More and more foreign investor, capital flow in to build more factories in Malaysia, more electricity require.

Fong/The Edge

KUALA LUMPUR (Sept 4): Malaysia secured RM85.4 billion in foreign investments in the first half of 2024 (1H2024), with Austria leading at RM30.1 billion.

This was followed by Singapore (RM16.5 billion), China (RM9.8 billion), the Netherlands (RM4.0 billion), and Taiwan (RM2.4 billion), according to the Malaysian Investment Development Authority (Mida).

The RM85.4 billion in foreign investments accounted for 53.4% of total approved investments of RM160 billion in 1H2024. Domestic investments contributed 46.6% or RM74.6 billion.


The total approved investments of RM160 billion represented an 18% year-on-year increase from RM135.6 billion in the same period last year, Mida reiterated, following Prime Minister Datuk Seri Anwar Ibrahim's announcement of the same on Tuesday.

https://theedgemalaysia.com/node/725477

“In the 2Q2024 earnings season, performance of companies under our coverage were largely in line with our expectation, except for Tenaga, which exceeded our estimate, attributed to better-than-expected sale of electricity, along with lower fuel cost and forex translation loss, amid the strengthening of the MYR (Malaysian ringgit),” BIMB said.

Tenaga’s sale of electricity escalated 4% quarter-on-quarter and 6% year-on-year (y-o-y), thanks to increased demand from the commercial (DCs included under this) and domestic segment by 10% and 12% y-o-y, respectively.

BIMB maintained an “overweight” recommendation on the sector, with a “buy” call on Tenaga at a target price (TP) of RM17.84, Malakoff at a TP of 90 sen.

Just a slight improvement in Tenaga %revenue will bring huge earnings to Tenaga in next coming next Qtr report. Now, 6 datacenter building, infrastructure are ready, bringing in equipment, tooling, expect start operation by end 2024. Then, another 4 new Data centers in building, more to come by end 2024. Imagine in year 2025, all big corporation Microsoft, Nvidia, Bytedyne, Amazon, Google, SEA are ready & start operation. How much power its require by then.

Not to mention, household & industrial TNB usage tariff charges increase, that will boost it revenue on top of global coal price drop, forex RM vs USD stronger & increase tariff cost charges.

Short term TP $17.00 by next Qtr result out.

PE 20 is including the last 4th Quarter of losing EPS -6.3sen due to one-time deal wipe off of PPE glove machine. If that exclude & expect next Qtr 4sen, then it will be 1.56sen (Q1) + 2.72sen (Q2) + 3.9sen (Q3) + 4.3sen (Q4 estimate) = 12.48sen. So it still undervalued based on purely organic grow & revenue improve

Latest HLIB report on 8th Aug

A record quarter 9MFY24 core net profit of RM39m (+>100%) was a beat thanks to stronger-than expected EBITDA margin. Aided by the favourable forex, 9MFY24 top line gained 36% to RM341m as the higher contributions from HDD, automotive and EMS were more than sufficient to negate the weakness in camera/industrial. After 3 consecutive quarters of robust growth in FY24, Notion anticipates 4QFY24 to
progress at a moderate pace in view of the volatility of forex. A stabilized earnings will allow Notion to position and prepare for further expansion in FY25. Maintain BUY with unchanged TP of RM3.28, pegged to 30x of mid-CY26f fully diluted earnings. It is well positioned to capitalise on: (i) increasing adoption of AI; (ii)
advancements in disk storage capacity; (iii) global manufacturing diversification;
and (iv) revival of E&E sector.

Beat expectations. 3QFY24 recorded the strongest ever revenue of RM136m (+21% QoQ, +63% YoY) translated into a core PAT of RM19m (+67% QoQ, +>100% YoY), bringing 9MFY24 to RM39m (+>100% YoY), which was above expectations, accounting for 81% and 75% of HLIB and consensus full year forecasts, respectively. The positive surprise was due to stronger-than-expected EBITDA margin. 9MFY24 one-off EIs included amortization of deferred income on government grant (-RM335k), gain on bargain purchase (-RM147k), gain on lease modification (-RM212k), inventories written off (+RM509k), impairment loss on receivables (+RM15k), PPE written off (+RM347k), net forex gain (-RM2.3m), reversal of receivables impairment (-RM359k) and reversal
of PPE impairment loss (-RM886k). Dividend. None (3Q23: none).

YTD DPS amounted to 1 sen (9M23: none).

QoQ. Aided by the favourable forex (3QFY24: RM4.73/USD vs 2QFY24: RM4.72/USD), turnover gained 21% due to higher contributions from HDD (+31%) and EMS (+77%) which were more than sufficient to offset the weaknesses in automotive (-12%) and camera/industrial (-31%). In turn, core net profit accelerated at a faster pace of 67% thanks to higher EBITDA margin (+0.3ppt) and lower effective corporate tax rate of 17%
(2QFY24: 21%). YoY. Besides the stronger greenback (3QFY23: RM4.53/USD), revenue surged by
63% thanks to improvements from all segments – HDD (+143%), automotive (+10%), EMS (+93%) and camera/industrial (+2%). Earnings improved from a loss of RM3m in 3QFY23 to RM19m in 3QFY24 attributable to higher EBITDA margin, lower D&A and lower effective corporate tax rate. YTD. For the same explanations above, top and bottom lines expanded by 36% and +>100%, respectively. Revenue growth breakdown: HDD (+39%), automotive (+16%), EMS (+81%) and camera/industrial (-7%).

Outlook:
After 3 consecutive quarters of robust growth in FY24, Notion anticipates 4QFY24 to progress at a moderate pace in view of the volatility of forex. A stabilized earnings will allow Notion to position and prepare for further expansion in FY25. The group is confident that FY24 will set a new benchmark for both revenue and profits,
marking a record year.

Reiterate BUY with unchanged TP of RM3.28, pegged to 30x of mid-CY26f fully diluted
earnings. We like its impressive turnaround and longer visibility in its earnings growth trajectory. The company is well positioned to capitalise on: (i) increasing adoption of AI; (ii) advancements in disk storage capacity; (iii) global manufacturing diversification; and (iv) revival of E&E sector.

Selangor Will Have 17 More Data Centres By Next Year With Development Cost Of RM52 Billion
By Editor - August 25, 2024

https://www.businesstoday.com.my/2024/08/25/selangor-will-have-17-more-data-centres-by-next-year-with-development-cost-of-rm52-billion/

https://www.aboutamazon.sg/news/aws/aws-launches-malaysias-first-cloud-infrastructure-region

https://www.aboutamazon.sg/news/aws/aws-launches-malaysias-first-cloud-infrastructure-region

Amazon AWS official announce & committed to invest in Malaysia data centers with RM57.3bil in Malaysia alone. That's a good investment in longer term especially starting next year 2025, big catalyst for AI data center of HDD, SDD storage memory. AI data center require 90% HDD, that a huge storage memory capacity in coming years.

"AWS Region: Boosting local data storage and reducing latency for businesses

KUALA LUMPUR (Aug 22): The launch of the Amazon Web Services (AWS) Asia Pacific (Malaysia) Region will allow local businesses to store and process their data within the country, said AWS Malaysia country manager Pete Murray in an interview with Digital Edge. This will facilitate faster application performance and better user experience can be achieved through reduced latency.

The AWS Region will enable businesses of all sizes to access cloud-based services, which empower them to scale and compete at a global scale, said Murray. AWS also plans to collaborate with local technology partners to develop solutions and services.

The total investment associated with the AWS Region from 2024 to 2038 will be RM29.2 billion. This investment is estimated to contribute RM57.3 billion in gross domestic product during the same period. Additionally, more than 3,500 jobs are expected to be created.


The region consists of three availability zones, which are data centre clusters that have independent power, cooling and physical security that are connected through ultra-low latency networks.

“Large enterprises, critical industry participants [and] regulated industries like financial services, healthcare [and] the public sector are now able to localise the data that they use…. In addition, we’ve also seen this as very exciting for start-ups and digital native community who are able to leverage the lower latency as well as data localisation here in Malaysia but be able to go global,” said Murray.

“One of the key and critical strengths of public cloud technologies is this concept of being able to go global in minutes.”

Industries that will benefit from the AWS Region include telecommunications, data centre operations, non-residential construction, electricity generation and security services for the data centres, which consequentially will have a ripple effect on the country’s broader economy, said Murray.

Murray also reiterated AWS’ commitment to provide training and resources to help local businesses to utilise the technology. Currently, AWS Malaysia has trained over 100,000 individuals in cloud skills.

The company will also take measures to reduce energy consumption and carbon emissions. AWS also aims to power their operations with 100% renewable energy by 2025 and achieve net-zero carbon emissions across its operations by 2040.

“AWS has multiple initiatives to reduce the carbon impact of the concrete required in the construction of data centres. Our new design standards require concrete that has 20% reduction of embodied carbon versus standard concrete in our US data centres. We expect to expand this requirement globally,” said Murray."

https://theedgemalaysia.com/node/723844

There are 6 AI Datacenters ready in last month, July 2024 & 3 more to come by year end. Now the 6 building is setting up its infrastructure, expected ready by end of this year. I expect HDD storage memory order will come by early 2025.

The issue here, not many investor fear to hold till year end to early next year. Once big operator collect enough share in high volume, less retailers investor hold.. then oncee spike up.. we normal retailer investor chase & pump up the share price, eventually sell out to retailer.

How low can it goes, that really depend on retailer investor dare to hold or not.

More and more corporate bankers, fund managers are eyeing on these potential growth stock. Dont simply sell your share for big operators, fund mgr eating up your hard earned high growth Notion Vtec stock. Really hard to find a good continuous golden gem stock in Bursa. 3 consecutives quarters growing up with QoQ double digit, that really occur opportunity in Bursa with proven result, figure & fact and NOT FICTION

https://theedgemalaysia.com/node/722596

AI related data center developers, Gamuda, Suncon is bottom up, starting to climbing up gradually, good support. Stay firm, hold and add up for Notion multi-baggar return in times

The intention I shared to you all is to be wise, dont blindly follow the price movement. Just keep and hold it, if drop buy by portion to accumulate at lower price as long as business revenue, earning & efficiency is growing. If felt too worry or stress on price movement, buy a moderate portion, then add it up as it goes up or down.
If next Qtr Notion hit EPS 4.3 to 4.5sen, that a good indicator moderate grow + moving into good direction to 2025 for big business revenue grow.

Be wise!

I do aligned to OTB fact & figure comment.

"The latest quarter Q2 2024 of Vstecs is 4.30 sen, the share price of Vstecs is 3.52.
The target price of Vstecs is said to be set at 6.00.

The latest quarter Q3 2024 of Notion is 3.90 sen, the share price of Notion is 1.72.
The target price of Notion is said to worth 30 to 50 sen only.

Both stocks are classified as "Technology" stocks. They are involved in "AI data centres" directly or indirectly.
I believe they (both stocks) will perform well.

Go and check all "Technology" stocks listed in KLSE, if the EPS per quarter is > 3.90 sen, what is the current share price ?

Vstecs = 3.38, EPS = 4.30 sen.
Notion = 1.72, EPS = 3.90 sen.
Greatec = 5.20, EPS = 2.55 sen.
MPI = 36.80, EPS = 16.47 sen.
Unisem = 3.47, EPS = 1.04 sen
PIE = 5.63, EPS = 4.46 sen
Mi = 2.28, EPS = 3.09 sen
Frontkn = 3.94, EPS = 2.12 sen
Inari = 3.55, EPS = 1.97 sen

I write with facts and figures, all data are just updated recently.
Decide yourself."

Those counter is way high overvalued vs Notion + it QoQ not yet showing improving revenue or earning grow compare to Notion. How these others stock justify to that share price based on future value which I believe is more high risk than Notion. Plus Notion is indeed making progress grow by organic grow, not yet factor in it next EMS China+1, Taiwan+1, Korea big catalyst on top of AI Data center HDD growth.

Be wisely, dont follow other people blindly without facts & figure proven result.

Momentum buying come, up +9sen to 1.55 in big buyer support. Dont miss the opportunity. Drop from peak 2.44 to 1.55, yet revenue, earning & efficiency continue improve organically. Imagine by year 2025 when its EMS China+1, Taiwan+1, Korea + big grow of AI Datacenter HDD boom for year 2025 onward.

Even current price is way undervalued, less than PE 10. EPS 4.0sen x 4 = 16sen. Be firm and hold, dont let your profit become loss being sell & consume by others wait to collect it. What the point if continue sell, if company revenue & earning continue growth QoQ by double digit, u miss the multi baggar profit in coming weeks to months especially year 2025

Be patience. Which counter in Bursa right now business fundamental is getting solid, revenue increase, efficiency improve double digit QoQ right now? This counter is very like previous Hartalega, glove sector when it was small company about RM1bil market cap in past 12years ago. I bought it, hold it till fund mgr still not spot it, grow QoQ 25%, hold it for 1 year with no share price movement. Then out of suddenly, the price jump after 4 Quarters then it shoot up 100% in 6mths, then it begin multi-baggar due to operation efficient & more sales order of nitrile in US & Europe. That how I become financial freedom, no work for money in early year.

I has strong believe in Notion as long as revenue, earning continue grow + most important getting more efficient year by year. Organic grow on EMS is proven with QoQ improving. Plus, big macro level business of growing Data center is on-track for next big grow in year 2025 and beyond, at least 6years.

Let's us be patience and continue monitor its progress.

That assumption Rev RM1bil in FY2025, with PAT & EPS of RM160mil & 29.5sen is very conservative.
Based on the Notion record past 3 last Qtrs result of continuous improving %GM & better cost management operation efficiency, I believe can hit min PAT >20%, around RM200mil, PAT & EPS is 36.9sen by FY2025

This latest Qtr result, QoQ improve is still not yet factor-in China+1, Taiwan+1, Korea & AI data center HDD business grow in next 2025 financial report. All %revenue & %PBT earning gain are purely on organic grow with better than expected cost operation efficiency improvement.

So it will be good to collect, accumulate as it goes & hold for upcoming till 2025 as long as Notion's mgmt consistently deliver improving Qtr result.

Hi OTB,

I do not have a well round calculation if Notion's FY2025 reach RM1.0bil revenue as it Gross margin, PBT continue improve way exceed beyond calculation baseline assumption. That's mean Notion mgmt really improving their factory operation cost way better by each quarters than we can assume here.

For instance, even a small revenue increase from Q2 to Q3, its improve very drastically. I hardly see only One Quarter (Q3'FY24) result can be that good QoQ: Rev +21%, GM% +40%, PAT +42%. Plus Notion's mgmt very positive on FY2025 and set a new benchmark this Q3'FY24 result as a standard, moving forward as in next Q4'FY24. It even get excited & confidence moving into next year 2025.

I believe Notion does has something on-hand but cannot announce for now until it official lock-down, secured before announce to public on China +1, Taiwan+1 & Korea upcoming new business sales order.

Q3 FY2024, Rev=135.5M, PAT=20M [EPS 3.9sen]
--> QoQ: Rev +21%, GM% +40%, PAT +42%

AI related theme play stocks in US come back in aggressive mode, all up >20% in big revenge like AVGO, NVDA, AMZN, META in less than 4 continuous days trading, same across Taiwan, Japan stock exchange. Time to buck in and enter, before the train fly high and miss the big boat for multi-baggar return.

This Notion is still not factor-in the price appreciation even it hit $2.44 at highest point because its revenue is continue climbing from RM93mil to RM135mil in past 3 Qtr, impressively its earning up 150% growth. Notion's top mgmt already stated in TheEdge confidently last May'24, its revenue estimate to hit triple to RM1bil revenue in financial reporting by year 2025, begin its operation by mid/late Q4'24.

How do you define a company share price already price in, what is the timeline? Do you know if revenue can grow 3x triple, how much is the earning PAT will be? Its not a 1:1 ratio as of if revenue up 3x then earning PAT is the same. Wise versa, it can go beyond 6x or more as operation cost is fixed, once it hit its operation breakeven cost, every single +RM1 ringgit gain on revenue will convert to earning PBT, then minus tax it will be very significant to earning PAT.

Look ahead deeper on it reporting revenue Q1 to Q3, it revenue gain +RM42mil (RM93.7mil (Q1)--> RM135mil (Q3)), increase of +44%, but its earning PAT rose to +151% (RM8mil (Q1) --> RM20.1mil (Q3). See the different..

Assuming Notion's EPS with zero growth for FY 2025 is 4.0 x 4 = 16.0 sen, that PER=10 equal to $1.60. If Notion revenue up 3x per mgmt expected by year 2025, that EPS will be 16sen x 3 = 48sen, equal to PER 10 of $4.80. Conservative target price by HLIB's report at 3.28 is easily achievable at minimum.

FYI, I'm already a financial freedom, no need work for money. My successful investment cycle over last 15yrs+ not because of luck, I invest based on solid fundamental growth company + market theme sentiment with CAGR mostly on Bursa & US stocks.

You already profit handsomely on Notion, buy at lower price, that good for you which I also profit from it. I continue keep it as it does provide a golden opportunity for multi-baggar return. But dont be black hearted with bad intention, mislead novice investor to sell down at lower price, then yourself buy back at lower price at expenses of other losses. Of course market sentiment need to monitor closely, day by day but that will be taxing for normal investors unless you are full time trader investor. But once you miss it, u will never buy it back if the company continue to provide solid growing revenue + earning profit.

Take example, Nvidia past 2yrs ago, share price was $9.30, now up $118 after 10:1 share split.. Now, opportunity come for Notion, will it be like Nvda or conservatively up 2x to 4x, can it potential in next 1-2 year? Dont forget, AI Datacenter still not starting yet, AI DC building still developing, expected ready by end 2024 & start operation in year 2025. How high can it goes, once worldwide AI DC is ready and require massive tons of billions of HDD, SDD till year 2030? How big it will be?

This cancel announcement is to confirm to cancel MOU, pertaining to power utility upon several status released past statement since Feb'24, zero effect to any Notion business segment. Make it a clear statement for investors to know it final confirmation.

Here i3investor chatroom is good to share insight information of business outlook, revenue projection, facts & figure with data. Dont blindly mislead novice investors who believe it gap down, then sell their share at a loss without knowing what the company business doing at all. If the company is lousy, bad management, revenue on declining with data & figures proven that fine to share and alert investor.

Dont be an asshole, always bad-mouthed without do any indepth research, market trend theme and revenue + earning growing. You are doing a bad karma to other people, eventually you are the one suffer the bad karma and lose big in investment world. It is way better if you just keep quiet.

In summary, all related AI DC storage memory market trend is positive, growing CAGR 26.5% yearly especially on high end nearline HDD high capacity memory products. Keep it for at least year 2025 when all AI DC building worldwide ready & start operation by late mid/end Q4 2024.

Need to firmly hold for big multi-baggar return profit in year 2025 till 2033 with yearly compounding growth of 26.5% annually.

Overall, AI DC storage memory market trend is positive, growing CAGR 26.5% yearly especially on high end nearline HDD high capacity memory products

https://klse.i3investor.com/web/blog/detail/NotionJCYDufustorage/2024-08-15-story-h-154193002-Hard_Drive_Capacity_by_Data_Center_market_Roadmap

https://klse.i3investor.com/web/blog/detail/NotionJCYDufuAIDCtrend/2024-08-15-story-h-154193840-AI_Powered_Storage_Market_Size_Share_and_Trends_2024_to_2033

https://klse.i3investor.com/web/blog/detail/NotionJCYDufuAIDCtrend/2024-08-15-story-h-154193840-AI_Powered_Storage_Market_Size_Share_and_Trends_2024_to_2033

https://klse.i3investor.com/web/blog/detail/NotionJCYDufuAIDCtrend/2024-08-15-story-h-154193840-AI_Powered_Storage_Market_Size_Share_and_Trends_2024_to_2033

Overall, AI DC storage memory market trend is positive

https://klse.i3investor.com/web/blog/detail/NotionJCYDufustorage/2024-08-15-story-h-154193002-Hard_Drive_Capacity_by_Data_Center_market_Roadmap

Notion's next big business catalyst customer China+1, Taiwan+1 on EMS business still in advanced negotiation, expected to be finalize by Sep to Oct timeframe, that will triple up Notion's revenue, starting mid Q4'24 & reporting actual financial report in next year 2025. Here we mention of 3x upside of revenue. Now, with continue substantial QoQ revenue jump RM93M (Q1) --> RM135M(Q3) & PAT earnings jump massively from RM8.02M (Q1) --> RM20.15M (Q3), a 151% jump PAT earning, EPS continuous growing up with consistent 3Qtrs, this showing its a well proven business revenue growing on what Notion's mgmt said & continuous 3Qtrs PAT earning really delivered so far and on good path for business expansion.

Imagine if next upcoming China+1 Aluminium (yearly RM500M revenue, big catalyst) announce business secure in coming Sep or Oct'24, what that will happen to Notion share price. Plus, we have not include or add any AI DC HDD massive business opportunity in year end 2024 to early 2025, whereby once all AI DC building across entire world & Msia as a overall ready, start purchasing tons of billions of HDD, SDD for memory storage in AI DC for next 2030, what that will be across of Notion, JCY & Dufu.

Question, why I still not dare to buy big on JCY, Dufu as I dont see the revenue, earnings proven on steady ground come from their business outlook growth, but it will eventually come once it AI DC building are all ready by late Dec'24 which will report on Feb'25 Qtr result. So for now, it is a safe invest on Notion as its EMS business proven coming in, cost factory operation improving more efficient & future outlook on 2H'24 is encouraging to expand further.

That's true OTB. Those who not research and study it's business fundamentals + business structural change are not well aware & understand that Notion is business transformation, getting more and more EMS business from China+1, Taiwan+1, Korea. Not only that, it's operation cost + gross margin efficiency is improving to double digit growth QoQ. Add on with new upcoming new catalyst businesses from these major customers, it will highly successful to hit $3.20 by eary 2025 or earlier.

With the moving buying trend & volume, I expect Notion this round can hit to $2.50 to $3.00 as long as US market current correction sentiment recover as right now big operator come in & accumulate the share in bigger volume as today just the first day, more to come everyday till end of Aug.

In term of palm oil, CPO price will slowly go up to RM4100+ & I believe Jtiasa palm oil tree is maturing, reaching average 14yrs+ good harvest period, up 30% growth annually for next 5 to 6yr at least. Plus is revenue & earning are way better than SOP, TSH and others blue stock. Opportunity is high for those who expect CPO price raising to RM4100 and beyond.

Now, who right or wrong. I told before, with good continue revenue & earning up, sooner or later bank will lift off the restriction. Now share price up, even banker also research show Notion is definitely a good structural business revenue change, just a matter of time will go back to $2.00 & then move to $3.00 once coming next Qtr result show EPS +4.3sen or more.

Notion this Q3 revenue is improving + earning grow significantly due to operational efficiency. Assume not factor in China+1 EMS revenue grow, just based on current latest Qtr earning EPS 3.9sen, assume all others remaining Qtr remain same, stay at this level, zero growth. It will be 3.9 x 4 = 15.6sen. Forward PE 10 will be $1.56, which currently a good support level to accumulate.

Those haters say Notion will be limit down, margin call which that impossible or hardly come, as all bankers already cap the trading margin buy since last mth already. Now all buyers are genuine buyer with cash, thus no margin call will come. 2nd, people fear as Notion up way too fast, possible go back now to 1.00 or below, is that's possible based on actual reported revenue and earnings grow from EPS point of view of Q1 (1.56sen) --> Q2 (2.72sen) --> Q3 (3.9sen)? Even Notion CEO very positive on next year 2025 with expect grow higher.
You do the maths and knowledge.

What to fear off? Any drop is opportunity to buy

https://klse.i3investor.com/web/blog/detail/notionvtecintact/2024-05-29-story-h-160659447-Why_I_believe_Notion_Vtec_s_share_price_easily_go_3_00_and_beyond

In short, just to summarize what theEdge interview column, also for myself remind of why I pick & buy Notion in first place.

What catalyst enablers Notion Vtec to achieve RM1billion revenue target by FY2026 (3times vs RM345mil in FY2023), CAGR 43% by segment breakdown to group revenue:

a) HDD: Revenue up 30% + high confidence continue expand 5 years due to recovery enterprise cloud & new data centers volume expansion

b) Automotive: Revenue up 35% + continue grow on new customer South Korea supply volume production of solenoid valves, starting 2HFY2024

c) EMS: Revenue up additional 35% due to few new EMS clients taken on-board in high-end electrical appliance

d) Aluminium extrusion & machining venture [New catalyst]: Revenue additional RM500mil/annual + advanced negotiation stage with potential Chinese partnership driven by need to relocate out of China operation due to US-China trade tension & US tariff hikes on Chinese imports, starting early FY2025

The prediction of Notion $3.28 (PE=10) by year 2025 still conservative, can go way beyond as still not factor in the massive opportunity revenue create from AI cloud & data center yet for Notion. This revenue is purely on new existing & new catalyst business for Notion instead only, that already potential boost to Rm1bil revenue generated, starting Q1'FY25.

Imagine what happen if you include AI cloud & data center massive increase sales order and better ASP price for all Notion, JCY & Dufu bring towards it's revenue in 2H'24. What's that will happen as more and more big giants corporate Nvidia, Microsoft, Google committed to invest total Rm30billions+ and more to come in Msia here & globally to build data center with require massive HDD, SDD memory storage. What the future lie ahead for data center which contribute to data storage of HDD & SDD throughout now till year 2030? That will be a blowout massive revenue for all related Western Digital, Seagate & other tier2 , tier3 supply chain starting year 2025.

Do the maths, that you know why Notion, JCY & Dufu their huge potential of revenue growth.

https://klse.i3investor.com/web/blog/detail/notionvtec/2024-05-28-story-h-160714258-Notion_Vtec_s_well_diversified_RM1billion_revenue_target_by_FY2026_CAGR

This restriction prevent margin cash trade, must be genuine cash on-hand to buy only, no margin allow. I believe this will be lift off soon after next Qtr result out with estimate Q4 EPS 4.3sen, restate to next actual PE 13 on upcoming 4 EPS actual rolling in total

Why in first place, banker set this restriction rule as it previous last 4th Qtr result show -6.98sen (Q4'FY23), the loss due to one-time impairment loss PPE glove of plant & machinery RM 30.7mil + RM8.5mil. After that, it start to recover & rebound fast fundamentally earning grow starting Q1 (1.56sen) --> Q2 (2.72sen) --> Q3 (3.9sen). Expect come Q4 hit 4.3sen and then moving into new starting Q1'FY25 (Dec), it will expand to triple 3x its revenue by year 2025.

You may read my blog research update for better understanding, as this was shared in TheEdge interview column back on May'24 by Notion Mr. Thoo.

Notion CEO quoted in Qtr report, "This period of stabilised earnings will position us well as we prepare for further expansion in the next financial year," the group noted.

That's stated clearly in CEO for next Q4'24 (Dec) result, will be massive expansion growth starting Q4'24 soon after EMS Aluminium revenue start to kick in mid/end Q4'24, triple up its 3x revenue growth till end 2025 financially. Plus, its stated, upcoming Q3'24 (Sep) will have modest grow. I estimate will hit revenue RM150mil, with earning RM25mil (EPS 4.33sen) in next Qtr result. Overall, business is stable, growing & expanding great in next 6mths to 1 yr for triple revenue gain by 2025. It's is a business revenue structural change toward expansion mode with each Qtr better %profit margin operational cost improve financially proven in Qtr report.

I dont see any reason to sell beside sentiment movement. I will continue hold, buy & collect when opportunity come, even buy on upside as well if buying momentum mode comes in for next RM3.28 (PE 10) or higher as long as mgmt continue to deliver & business growing.

It's goreng up, not entirely goreng as it support by revenue + earning result continue grow. Imagine from Q1 revenue from 93.7mil to 135mil in 6mths, but its earning grow massively from 1.56sen up to 3.9sen, that 150% gain in operation efficiency, better margin profit to get this better earning profit result, that massive growth to be frank even not factor in AI DC building ready for next HDD/SDD storage business grow by year end. Compare to other EMS companies with average PE 20+ with less to low grow, this Notion is purely more better invest upon vs others. The only driven factor that potential make Notion or even all others stocks in the market is sentiment movement now. As long as Notion mgmt really good in deliver its business revenue & earning quarterly, then any drop we can collect it gradually through dollar averaging.

Its revenue up QoQ & impressive result, even AI DC not ready entirely, but still deliver better result
Q1'FY24 --> 93.7M, earn 8M (EPS 1.56)
Q2'FY24 --> 111.5M, earn 14M (EPS 2.72)
Q3'FY24 --> 135.5M, earn 20M (EPS 3.9)
Q4'FY24 --> >150M, earn 25M (EPS 4.33) ?? Potential achieve, i believe conservatively can hit to this target

Then Q1'FY25 --> 150M to 180M, earn 30M (EPS 5.0 to 5.4) ??

Then subsequent, every Qtr modestly growing and get higher once EMS China+1 start to kick operate & revenue continue up till end of 2025, it will triple its revenue to RM1bil, then it will be massive opportunity if to buy now & hold for it. As long as Qtr result continue to show good, impressive growing trend, i dont see any issue of it beside too focus on sentiment movement. We can buy dollar averaging to manage market sentiment provided it revenue & earning continue growing.

This Notion qtr result is impressive. Not to forget, its mgmt stated way before that only 2H'24 will see growth & will triple its revenue by FY2026 after mid/end Q4'24 China+1 Aluminium start operation. By then, it will be massive growth, hit target of RM3.20 (PE 10) by year 2025. In term of fundamental growth, Notion is structural changing & growing business toward new era of EMS + HDD especially when HDD data center come by year end after all AI DC building ready to operate throughout the world, not only Msia. Market sentiment does driven fear & uncertain but no one know when it will play, this week negative, then next week positive & then later all clear.. it shoot up high then we end up chasing & buying at high end and lose it. We need to invest through dollar averaging if it drop, then hold for massive gain in next half to 1 year.

One thing JCY has many short term traders, trade in & out very fast, volatile. Slightly hard to push up higher unless JCY next Qtr result is good, mgmt able to deliver and hit EPS 1.6sen. Hope it does. Just trade caution.

With Seagate Qtr report out, it obvious end-customer for AI cloud data center start buying HDD, SDD memory across the globe. Starting this Q2'24 result and moving forward, this is a kickstart big for all storage memory with raising AI data center across the world. Imagine there will be billons of billions of HDD require to support 10,000 data centers across the world till year 2030. That's a massive big in HDD revenue & earning starting this Qtr and for next 2030.

With Seagate Qtr report out, it obvious end-customer for AI cloud data center start buying HDD, SDD memory across the globe. Starting this Q2'24 result and moving forward, this is a kickstart big for all storage memory with raising AI data center across the world. Imagine there will be billons of billions of HDD require to support 10,000 data centers across the world till year 2030. That's a massive big in HDD revenue & earning starting this Qtr and for next 2030.

True, sentiment play a major role in determine price fluctuations. In terms of stability, I more prefer Notion as too many short term players in JCY vs Notion, like to play trade in and out. Invest caution.

Remember, we buying JCY & Notion is for 2H'24 revenue & earnings when all AI data center across worldwide are ready & start operate. Tonight Seagate's future guidance business is very important to determine the next 2H24 & year 2025 onward. It will provide a clear overall HDD, SDD business. Opportunity to collect is now & hold till year end 2024 to Feb2025 for Notion $3.50 to $4.00 target price.

Remember, we buying JCY & Notion is for 2H'24 revenue & earnings when all AI data center across worldwide are ready & start operate. Tonight Seagate's future guidance business is very important to determine the next 2H24 & year 2025 onward. It will provide a clear overall HDD, SDD business. Opportunity to collect is now & hold till year end 2024 to Feb2025 for $2.00 target price.

Notion, in term of EMS sector alone, Notion is still the most undervalued with super big growth opportunities in upcoming business grow across its sector. Including the AI data center HDD business, that even massive growth in year 2024.
Dont forget, the next catalyst enablers for Notion to achieve RM1billion revenue target by FY2026 (3times vs RM345mil in FY2023), CAGR 43% by segment breakdown to group revenue:

a) HDD: Revenue up 30% + high confidence continue expand 5 years due to recovery enterprise cloud & new data centers volume expansion

b) Automotive: Revenue up 35% + continue grow on new customer South Korea supply volume production of solenoid valves, starting 2HFY2024

c) EMS: Revenue up additional 35% due to few new EMS clients taken on-board in high-end electrical appliance

d) Aluminium extrusion & machining venture [New catalyst]: Revenue additional RM500mil/annual + advanced negotiation stage with potential Chinese partnership driven by need to relocate out of China operation due to US-China trade tension & US tariff hikes on Chinese imports, starting mid/late Q4'2024

Once a golden opportunity to buy Armada, stable, secure, profitable with super earning+ high net profits margin 35% + next Rm20bil business lock down.. what's else provide a secure, guarantee business to investors, super undervalued. Huge opportunity

I m buying Armada, huge potential for price spike up with FPSO demand continue rise worldwide. Easily go beyond $1.00 with forward PE 6 + MISC to buy it's share. Can up 80% by couple of weeks once big fund mgr observed it potential with sales order Rm9.1bil + additional Rm10.7bil, that Rm20bil secured business, plus now MISC plan to buy Armada to expand it's FPSO business, opportunity is huge