Better not to sell too early the Artificial Intelligence and Data Centres shares that you have bought. After you have sold and the share price still go up, then you go and chase it back and the next it drops, then you panic sell and you loss whatever you have gained earlier.

Products of JCY International Bhd:

(1) Hard Disk Drive Components
Dual Material Laminate with Progressive Stamping, Die cut adhesive and Damper Assembly

(2) Solid State Drive Components
Extrusion, CNC Machining, ED Coat, Silk Screen Printing

(3) LED Light Bulb
Die Casting, Spray Painting

(4) Solar Micro Inverter
Die Casting, CNC Machining, Powder Coat, Silk Screen Printing

(5) Baseplate
Die Casting, CNC Machining, ED Coat, Aqueous Wash

(6) Cover
Extrusion, CNC Machining, Clear Anodizing

(7) Heat Sink
Extrusion, CNC Machining, ED Coat

(8) Prototype Hog Out
From 3D CAD model to product prototype samples. CNC machined from solid block of Aluminium or Acrylic.

(9) Prototype Hog Out
Machined from solid block of material

(10) Separator Plate
Extrusion, CNC Machining, Electroless Nickel Plating

(11) Separator Plate
Die Casting, CNC Machining, ED Coat

(12) Heat Sink
Extrusion, CNC Machining, Color Anodizing

(13) Steel Connector Plate
CNC Machining

(14) Actuator Arm Body
Extrusion, CNC Machining, Chemical Polishing

(15) Steel Connector
CNC Turning, CNC Machining

(16) Steel Connector
CNC Turning, CNC Machining

(17) Actuator Pivot Flex Circuit Assembly
Class 1000 and Class 100 Clean Room Assembly

(18) Form-In-Place Gasket
FIPG Plotting, Spot UV, UV Cure, Oven Cure

Aluminium extrusion project is the new project at advancement stage of discussion.

Now it is Notion Vtec's turn to have a big advertisement:

The key words are "LAGGARD NO MORE". Starting tomorrow, Notion will be goreng "kaw kaw".
At market close last Thursday, Notion VTec had a market capitalisation of RM536.7 million, lower than that of JCY (RM844.3 million) and Dufu (RM1.25 billion).
Catch up with JCY first, followed by Dufu.

“All three of these PLCs [Notion VTec, JCY and Dufu] are machinist companies serving the HDD sector. I would say Notion is the most diversified among them,” he says.
“But yes, Notion has been underperforming over the past few years, mainly because we had to struggle on with the new investment in healthcare, and as a result we took our eyes off precision machining. We are now back in force and we should see strong stable growth going forward.”
Except for a one-for-two bonus issue of ordinary shares in 2020, Notion VTec has not paid cash dividends since FY2019. The company is currently undertaking a one-for-10 bonus issue of free warrants.
“When you are losing money, there’s simply no money to fund dividends. It has been testing times. We know the pain, so investors need to stay patient while we work hard to restore and rejuvenate the business model,” says Thoo.
At end-December last year, Notion VTec had cash in the bank amounting to RM52.24 million. According to Absolutely Stocks data, its net cash position stood at RM16.8 million. The latest warrant exercise, assuming full conversion, is estimated to bring in additional cash of RM23 million over the next five years.
“However, very few would convert to the mother share until the tail end. Free warrants are to reward shareholders and great instruments in a rising share price environment,” he says.

Laggard no more?
Looking at Notion VTec’s share price performance against that of its closest peers, namely JCY and Dufu, Thoo concedes that his company was a laggard before the recent surge. At market close last Thursday, Notion VTec had a market capitalisation of RM536.7 million, lower than that of JCY (RM844.3 million) and Dufu (RM1.25 billion).

The Western Digital factor
In early April, it was reported that American computer drive manufacturer and data storage giant WD was seeing higher-than-expected demand across its entire flash and hard drive portfolio.
In response to the supply chain challenges in the electronics industry, WD had reportedly issued formal letters notifying its customers of product price increases. The adjustments took immediate effect in some cases.
Due to the growing demand for high-capacity HDD products driven by the artificial intelligence (AI) hype, WD’s rival Seagate Technology joined the price hike party a few weeks later.
Notion VTec has direct accounts with WD and Toshiba, as well as indirect accounts with Seagate through its unit in Thailand.
Thoo says Notion VTec’s main supply is in high-volume manufacturing of HDD spacers and disk clamps for the enterprise segment, which supports cloud and data centre storage.
“We have seen strong demand in recent months and this will continue in the next five years or more, driven by new demand in the generative AI data needed for machine learning text, videos and imaging tech for ChatGPT, full self-driving (FSD) AI led by Tesla and humanoid AI robots in the coming years,” he elaborates.
In any event, Thoo anticipates exciting times ahead for Notion VTec’s HDD segment, which is expected to contribute about 30% to group revenue.
“There are reports suggesting that the HDD demand is trending upwards due to this new AI growth trend. I believe this supply shortage is a result of the recovery of cloud and new data centres,” he observes.
For the automotive segment, Notion VTec produces the electronic braking system’s (EBS) aluminium hydraulic plunger for major manufacturers, including for electric vehicle (EV) customers.
“This sector will continue to grow with our new customer in South Korea supplying volume production of solenoid valves for the auto sector starting 2HFY2024,” says Thoo, adding that the automotive division is expected to contribute 35% to the group’s top line.
In the EMS accessories business, although Notion VTec already has a major client in the segment, the group has taken on board a few new customers.
“These new EMS clients are also in the high-end electrical appliances sector and other niche industries. We expect a 35% contribution to our group revenue,” he says.

However, Notion VTec would need to finalise some of its joint venture plans as realising the targets solely through organic growth would be challenging.
“Let me put it this way: our existing businesses [HDD, automotive and EMS] are not likely to drive us to achieving RM1 billion in turnover. Our next growth catalyst could be the aluminium extrusion business. If the new ventures do come about, they will have a major impact on our revenue from FY2025,” says Thoo.
Nearly two decades ago, in February 2005, he was appointed to Notion VTec’s board of directors. He is the brother-in-law of managing director William Choo Wing Hong and executive directors John Choo Wing Onn and Choo Wing Yew. As at Dec 29 last year, the Choo brothers and Thoo collectively owned 20.338% equity interest in the company.
Notion VTec’s earnings performance has been rather lumpy since the Covid-19 pandemic. After reporting a net profit of RM6.3 million in FY2020, the group slipped into the red with a net loss of RM7.8 million in FY2021.
Although Notion VTec returned to the black in FY2022, with a net profit of RM9.4 million, it incurred a net loss of RM45.02 million in the following financial year, attributing it mainly to impairment of plant and machinery amounting to RM30.69 million and inventory write-off of RM8.5 million.
Thoo concedes that it was a “painful decision” for Notion VTec to fully impair its PPE assets and investments as the group “cannot wait for a recovery” of the PPE industry. Like other PPE players, it suffered a decline in average selling prices amid an oversupply in the market.
“We have cut our losses and completed the impairment and exited the healthcare business. A hard lesson learnt,” he acknowledges. Notion VTec was among the first to jump on the PPE manufacturing bandwagon in 2020 in response to the shortage of such equipment following the Covid-19 outbreak.
“Many things have happened over the past five years. Certainly, the pandemic took us all by surprise and the time needed to restore [normalcy] was long. That’s when Notion VTec entered healthcare out of little choice,” says Thoo.
“Our main markets were disrupted by shipping, lockdowns, disruption of supply chain, downtime and other factors. It was a very unproductive period. It was scary in the beginning but we managed to gradually restore and recover. It’s a great time to learn and reflect too.”

Well-diversified Notion VTec seeks next earnings boost
This article first appeared in The Edge Malaysia Weekly on May 27, 2024 - June 2, 2024
PRECISION parts manufacturer Notion VTec Bhd (KL:NOTION), which has been under the radar of investors in recent years, appears to be solidly back in favour with its stock price surging 225% since the beginning of the year.
Its peers in the manufacturing of hard disk drive (HDD) components — JCY International Bhd (KL:JCY) and Dufu Technology Corp Bhd (KL:DUFU) — have also enjoyed investor interest, even though the counters have gained only 81% and 25% respectively.
The stronger share price performance of the three stocks is believed to be partly driven by news reports in April of Western Digital Corp (WD) and Seagate Technology raising their pricing for new HDD orders owing to supply shortages.
Main Market-listed Notion VTec currently operates in several business segments, including HDD, automotive and electronic manufacturing services (EMS).
In an interview with The Edge, Notion VTec executive chairman Thoo Chow Fah reveals that the group is in advanced negotiations with potential Chinese partners over aluminium extrusion and machining ventures, driven by the latter’s need to relocate their operations out of China because of US-China trade tensions and US tariff hikes on specific Chinese imports.
According to Thoo, in a blue-sky scenario, the aluminium extrusion projects are expected to generate an additional RM500 million in annual revenue, thereby creating a fourth major pillar in Notion VTec’s business portfolio.
“We are in the advanced stage of discussing ventures with two potential Chinese partners in aluminium extrusion and machining as these partners are planning to move their operations out of China. We are quite close to deciding which partner we want to team up with,” says the 71-year-old mechanical engineer.
Notion VTec generated revenue of RM334 million in the financial year ended Sept 30, 2022 (FY2022) and RM345 million in FY2023, with 23% coming from the HDD business, 31% from the automotive segment, 44% from EMS and camera and 2% from personal protective equipment (PPE). For 1HFY2024 ended March 31, 2024, turnover amounted to RM205.388 million (see chart).
Thoo says that, internally, Notion VTec aims to achieve a top line of RM500 million in FY2025 and double the target by FY2026.
“Overall, we are positive on the company’s outlook over the next five years in terms of top and bottom line. It is our board’s vision and hope to hit the RM1 billion revenue mark and we believe it should happen by FY2026 or beyond,” he elaborates.

I always look highly on pang72 on positive thinking.

Today is a good day for JCY but not a good day for Notion.

Summary of the article:
Will HDD regain its glory? Will JCY International be able to achieve success?

With the changes in technology, the rise of SSD (Solid State Drive), has begun to erode the market of HDD (Hard Disk Drive). JCY which sticks to HDD business has suffered loss for many years and its stock price has hit new lows.

Global data storage demand continues to search, giving the hard disk drive (HDD) market which has been demoralized for years, might have a turn around.
With the rapid rise of artificial intelligence (AI), HDD is becoming one of the key pillars of future data storage for data centres and demand has begun to exceed supply.

SSD is faster and more stable than HHD but HDD is eight time cheaper than SSD. SSD will be used for data application (such as AI learning models) while HDD will be used for data storage (such as database). Data centres are expected to be dominated by HDDs where its technology continues to improve constantly breaking through capacity limits (HDD can store more data than SSD).

Read carefully first. SSD which is faster and more stable are going to replace HDD. This is why JCY continues to have quarterly loss and make new lows these few years. Can JCY turn around, such that HDD is cheaper and can store up more data?

@FortuneBlooming: the ESOS at 0.25 in such a big volume looks worrying.

Mah Sing also produce plastic pallets in Malaysia and Indonesia.
www.msplastics.com.my

@jepun: Mah Sing glove factory in Kapar, Klang, Selangor is still operating.
www.mshealthcare.com

Mah Sing the Latest to Jump on Data Centre Bandwagon.

https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2024-05-31-story-h-160600083-Mah_Sing_the_Latest_to_Jump_on_Data_Centre_Bandwagon
This one sell on news. First day, it went up 19 sen. Then after market closed, the news was out. On the next trading day, it was down by 21 sen.

Kuala Lumpur (May 23, 2024)
Sime Darby Property Bhd (KL:SIMEPROP) said on Thursday it will build and lease out a hyperscale data center at its ELmina Business Park in a deal worth RM2 billion "marking the group's entry into the "data center segment ". This news helps SimeProp to jump from RM1.00 to RM1.24.

The Data Centre is for GOOGLE as it is confirmed by the EDGE.
https://theedgemalaysia.com/node/713588
But, for the second news, SimeProp got stuck at RM1.24.

Jakel invests in data centre project worth RM1.2 bil.
https://theedgemalaysia.com/node/713916

UEM Sunrise and Logos sign MOU to develop data centre campus in Johor.
https://theedgemalaysia.com/node/713819

Now venturing into Data Centres is just like "Little children playing sand". Even non-listed company like Jakel also wants to build a data centre.
For late comers, I think it is too late already.

Although I do not own any Ranhill share, I find that YTLPOWER is very unfair. The price of Ranhill now (Friday 31.05.2024) is RM1.34 but it force retailers to sell at RM0.995 via Mandatory General Offer. Last time Lembaga Tabung Angkatan Tentera offered to take BPLANT private at the price of RM1.55 when the share price was only around RM1.40 via Mandatory General Offer.

Now UEMS and LOGO signed an MOU to build a data centre campus in Southen Johor. The more the data centres they come, the smaller the data centres become. How to compete against NVIDIA, Microsoft and Google data centres.

Closing 1.49. No pump up today in the last 5 minutes. Consider OK loh. Go and take a look.at MAH SING data centre. Yesterday, it went up 19 sen; today drops 21 sen.

This rr88 is a bad person. Always talk bad about YTLPOWER. Now YTLPOWER dropped, he is so happy.

rr88 here already. Not a good sign.

https://klse.i3investor.com/web/cube/blog/blposts/Chloe_Tai_Blog/ChloeTai
What is inside a data centre: HDD (Hard Disck Drive) and SSD (Solid State Drive). JCY, Notion and Dufu are HDD & SSD producers.

https://klse.i3investor.com/web/cube/blog/blposts/Chloe_Tai_Blog/ChloeTai
What is inside a data centre: HDD (Hard Disk Drive) and SSD (Solid State Drive). JCY, Notion and Dufu are HDD & SSD producers.

https://klse.i3investor.com/web/cube/blog/blposts/Chloe_Tai_Blog/ChloeTai
What is inside a data centre: HDD (Hard Disk Drive) and SSD (Solid State Drive). JCY, Notion and Dufu are HDD & SSD producers.

The all time high is RM2.50 in August 2020. Still has legs to climb higher.

DUFU turns from red to white already but NOTION still in red.

Today JCY in green but Notion in red. Opposite of yesterday.

kkwong13 has published a blog explaining clearly on why Notion deserved a RM3 and above share price, due to the rising demand and higher ASP (Average Selling Price) for HDD (Hard Disk Drive) and SSD (Solid State Drive) for the coming AI Data Centres.

Hope tomorrow morning (30 May 2024) will not be like today morning (29 May 2024) where it gaps down sharply instead of gaps up.

Dufu also turn white. JCY still.red. Jia yu JCY please.

Is it that JCY target price is RM0.50. So, it could not go up higher.

Notion is recovering. Buy JCY still in deep red.

Synergy House 1st quarter results for FY2024 was below expectation where there is a 12.2% drop QoQ. Analysts are expecting at least a 10% rise QoQ.

I have gone through JCY home page. It seems that the company has the technology to produce both the usual version of HDD (Hard Disk Drive) and the high tech new version SSD (Solid State Drive). 👍

pang72: I like your positive comments which bring good luck to all of us. Cheers.

The whale did not appear today. Danny123 so happy. Anyway, it may appear in the coming days.

Notion and Notion-D turn back green alteady but don't know can last or not.

I sapu the NOTION-WD. Premium 16.27% is OK because it is just 10 days old (expiring on 7 May 2029).

Dear Calvin Tan, why NOTION-WD goes up 12 sen but the mother share only goes up 4 sen?

Initially, I thought the rise of Notion is by 'goreng' until they came out with their 2nd consecutive profit quarters, then I believe the HDD and SSD increase demands have facts. JCY did not react for the first three days after its profit making quaterly results (turn from loss to profit). It is only on the fourth day it started to react positively. Dufu is not doing very well. Just hope for the best and luck is with us and Calvin Tan (the promoter).

https://theedgemalaysia.com/node/705528
SunCon secures RM748 mil job to build data centre in Selangor. Data centres keep on booming. How many HDD and SSD do they need?

https://gamuda.com.my/2024/05/gamuda-bags-rm928-6mil-data-centre-co
Data centres keep on booming. How many HDD and SSD do they need?

https://www.youtube.com/watch?v=n2b0ljMXyEg

Sedenak Tech Park Johor

Still under construction and will be completed in 3 years time under the care of YTL and YTLPOWER. How many HDD and SSD do they need?

The SEDENAK TECHPARK is in Kulai, Johore.

I try searching for data centres in Malaysia. I could only found one, which is STT in Cyberjaya. The SEDENAK TECHPARK is still under construction, but is is going to be the biggest one in Malaysia. Malaysia is still quite far behind.

https://www.youtube.com/watch?v=kd33UVZhnAA

In terms of Solid State Drive (SSD) and Hard Disk Drive (HDD) producers, Notion and Dufu are much better than JCY. But I cannot afford to buy them. So, I have no choice but to buy JCY. Calvin Tan has stated that the immediate target price of JCY, which I bought at RM0.445 is RM0.50. Calvin Tan stated that JCY should be 73 sen after the August and November 2024 results. JCY has stated in their quarterly report that the 2nd half will be better than the first half for FY2024.