They are slow in face mask. Now market is full of mask. China manufacturers already ramp up their production. Now only they want to start production. Not a good move. Highly competitive environment. Topglove also producing face mask but it’s complementary to their products. Notion core business has nothing to do with mask.
After the bonus issues , l have already sense the coming qr is nothing much attractive looking at the share price b4 the results is released . The company are using every measures to sustain the price is not workable.
If the price is maintained with upward bias between .75 and .85. then i will surely hold and probably top up more slowly . But i will not trust an over whelming increase in price and suspect that syndicates are taking us for a ride. If Management and groups willing to sell down and support any volume sellers and not let the price volatility be extreme, I believe with these steps all parties involved will reap mutual benefits in the long run. Any big drop in price will discourage retail investors to hold and probably cut loss and look for other counters to support. I hope management is on retail side as well as big investor funds , and as i feel this guy next88 is sincere and do everything in his power to translate management ambition and produce result. Other empty companies with cooking up the books and taking small investor for a ride, I feel this company will maintain the price out any price drop will be goodwill for this company. we will see tomorrow.
Q2 FY2020: Business Outlook: What happened in Q2 was not unexpected as Wuhan started the lockdown in Jan 2020 and as China went into pre Lunar New Year holidays and subsequent national lockdown due to Covid-19 outbreak and followed by transmission of the virus globally resulting in a pandemic of a global proportion last experienced during the Spanish Flu pandemic of 1918 to 1920. Chinese manufacturers form the largest hub of supply chain for the Electrical & Electronics sector besides other important industrial and metals sectors. Once this supply chain was disrupted, there was utter chaos and immediate global search for alternative sources and change of suppliers from other hubs but the delays and capacity to replace this vital Chinese supply chain was an impossible task. The missing of a component or a surface treatment process or delays in shipment or inadequate inventories by any supplier to the final assembler will result in an incomplete production of the end product. Even if you have the capacity to manufacture a certain component but a disruption of other suppliers can cause your components to be held back. A public health issue has become an economic challenge as every affected country began to shut its borders and locked down with social distancing and personal healthcare becoming priority over economic activities deemed able to transmit the virus. Compared to previous quarter, HDD was down 10%, Automotive down 12%, Camera down 39% and EMS down 3% resulting on overall sales down 11%. All sectors were negatively affected even though internet usage surged which means data storage in HDD will benefit but disruption by suppliers and the MCO lockdown took effect on production due to limited capacity allowed and in some cases no work for a period of time. The lower scale of production and sales with a lower gross profit was not sufficient to cover the other Overheads and Selling & Administration cost resulting in a loss of RM 3.8 million
Outlook for Q3 (April – June): April and May months performance is sharply down due to the extended MCO and only the HDD sector held up well but we expect June to recover from both Automotive and EMS sectors albeit at a lower level. The safety of our workers, staff and management took centre stage as we implemented work from home for non-essential personnel, temperature checking, sanitizing of hands, periodic disinfection and social distancing. Q3 results will be negative reflecting the true state of business disruption
Outlook for Q4 (July-Sept): We do not know how long this pandemic will last and whether there will be subsequent waves and when a cure and a vaccine is made available. Most reports do indicate a period of 12 to 18 months to realistically get a tested and approved vaccine ready. Although Europe and USA have started to reopen after a long lockdown, it is still not back to normal pre-Covid time and the recovery can be prolonged and challenged by further flareups of the pandemic. The good thing is China has reopened earlier and the virus seems well under control and the supply chain has recovered. But the shutting of borders, quarantine of 14 days, limited air travel and fear of catching the virus continues to bear on every country and its economic health. Health consciousness, use of face mask, social distancing and hand washing have become a global trend.
New Paradigm Shift: The Group has after much brain storming, decided in March to make a strategic move into the Healthcare sector in production of surgical/medical face mask, production of the face mask filter barrier, PP polypropylene meltblown (MB) fabric and later the inner and outer layers of face mask, PP polypropylene spunbond (SB) fabric and also the PP resins needed for the fabric production. The business will kickstart in the month of June and gradually increase in scale as we develop the market and iron out the kinks of manufacture. The Group will provide the new guidance for FY2020 and 2021 in the next quarter when the production and business is made clearer. The total investment thus far is RM7.5 million in capex with 4 lines of face mask production of output 10 million face mask per month, 5 lines of PP MB production of 50 tons each month which is sufficient for 50 million face mask production a month. The excess of PP MB will be sold to other face mask makers locally and overseas. We have not yet invested in PP SB machinery as yet but soon.
To have an idea of the sales value of these new products, the face mask selling price is assumed at RM1 a piece and the PP MB selling price at USD50,000 or RM215,000 a ton. Finally, barring any unforeseen circumstances, the Board is cautiously optimistic that FY2020 will end up profitable once the new business grows. The Group is still in the metals business and developing new products in EMS as well as HDD, Automotive and using extrusion technology to further add depth to the engineering capabilities while awaiting the full recovery of the global markets.
this is not work as the company runs too many industry which mean the company cant focus on the main industry. some more the company has no experience in mask industry. company need to hire expert and buy lot machine to produce mask. the most important is the matter of time. when production is there and is the pandemic still there or lost? normal price for mask is just 59 cents (selling price but outlet to end user) before pandemic. there is too many mask in market after 6 months of the pandemic. running factory to produce mask is just another burden to the company. please correct me if i am wrong.
another case in point is DOw is up a lot// spillover effect and hence china loss is others gain ( even small amount to others wil be a big amount to MY
remember that there was a pack whicjh bought at the high end pre bonus and post bonus... that means that they still hold some even if they could have off loaded
JayC88: me too/// i have a paper gain.. and i got it after the big drop after it reached 1.30 pre bonus and collected on the way up. so my cost is also low but as low as yours. Congrats.. we swim or sink... but still on the priofit side cos very low risk of loosing and more probability of winning
happy if price holds in this rage & NOT happy if it goes too high as profiteeing and syn will play and cause too much volatility and perople will be scared to maintain this portfolio
Production of medical products only commence in June??? Way too slow way too late. Low margin products especially with so many companies jumping into it. Bad move by the directors. They should just focus on their high margin precision manufacturing unless they know their core business is doing really bad hence force to find alternative revenue.
Guys i have 750units of this shares. At first i bought 500 unit before the bonus.how to clear that extra 50 ya? Since we can only buy/sell in 100units.
Agreed with witan. This of this topglove is doing it as well. When they sell gloves, then can sell mask as well to the same buyer. They does not need to look for new customer. However for notion, they will need to look for customers whom may already bought from topglove
witan: i disagree.. what happens if extended slowdown and these pods are not too viable? at least Notion has a reputation to maintain and i kinda like their proactive stance trying to realign prods with the bigger space and income generating options, I can foresee complaints if Notion stuck to the safe slowdown prods and shows us lousy growth and we scream at Notion even louder. Anayways give it 2 qtrs and see results. If Positive we ride , if neg we abandon and seek others industries ... rinse and repeat. ( just my opinon)
Hold it until the next QR, their HDD segment is growing steadily, plus 20 Million Insurance fee from the fire, should be good profit next QR. Collect more now at low price!
Tollebunsmith, I disagree. Are you telling that AirAsia or Genting should produce gloves/face mask as well? They have much more capabilities than notion. We should focus on our area of expertise. Don’t try to jump here jump there
tollebunsmith: I just think for a successful business to grow they need to focus in what they are doing best instead of trying to become jack of all trades. Just my opinion
I mean if you look at Dufu and other similar companies, they are doing fantastic even during this covid19 outbreak. They don't try to diversify their business to something unrelated. So makes me wonder the direction of Notion management.
Thnaks for your POV.. just that in experience as a retired non management production line worker, i can see there space & staff already taken care off with only small adjustment/fine tuning. They let the staff go during slowdown and tey have to paid full salary. IF AA they have to find & employ new staff and new space and sources and equip. Thats why AA ventured into insurance & ho. .they are not just pilots... i know people will say they formed new company etc.. well this is the best ion could do under the circumstances. They might be wrong or right... how to find out... stay online here and wait at least 2 qtr.. that will be proof. I hope you wont take it in a wrong way. It is good to have a healthy exchange of vies so as to better make buying decisions and bach other. Thanks.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
stock_investor
526 posts
Posted by stock_investor > 2020-06-03 19:11 | Report Abuse
Useless counter. Pure goreng stock.