Outlook: Demand for large capacity HDDs mainly for cloud and enterprise computing and increasingly for Artificial Intelligence (AI) machine learning data storage has seen a resurgence of demand and orders as we serve that space diligently. We have established long-term relationships with these major HDD makers and the commitment for long-term supply is of paramount importance. We will grow in line with the industry growth pattern
*2QFY9/24 results.* Notion Vtec returned to the black in 2QFY9/24 with a PAT of MYR14m (2QFY9/23 LAT: -MYR7.8m). This brought 1HFY9/24 PAT to MYR22.1m (1HFY9/23 LAT: -MYR11.4m). Excluding net exceptional loss of MYR0.4m, its 1HFY9/24 core PATMI amounted to MYR22.5m. An interim dividend of 1sen/sh was declared for the quarter.
*Details.* The stronger 1HFY9/24 results were on the back of: 1) a 22% YoY growth in revenue, mainly driven by higher sales in both of its HDD and EMS segments; and 2) margin expansion. 1HFY9/24 GP margin expanded 15.3ppts YoY to 22.2% in (1HFY9/23: 6.8%) thanks to lower operating expenses.
*Prospect.* n other words, Notion offers potential turnaround play. Note that the group was loss-making in two out of the past three years. Moving forward, management expects a stronger 2HFY9/24 driven by growth from all of its business segments. The EMS segment will be supported by new projects secured in FY23.
For its HDD business, growth will be supported by the increased adoption of cloud and enterprise computing, and for artificial intelligence. Meanwhile, outlook for its automotive segment appear to be driven by the persistent adoption of electric vehicles. Notably, the group has received new orders to supply aluminium solenoid valves for its automotive business which will commence operations in 4QFY9/24.
*Valuation.* Investors should continue to monitor its upcoming quarterly results. At current price, the stock is trading at 11.5x annualised 1HFY9/24 core EPS of 8.7sen. In comparison, the Bursa Malaysia Technology Index trades at a 2024E PER of 30.3x. Balance sheet wise, Notion has a net cash of MYR17.4m at end-Mar 2024.
U see my long term stocks.this is the statement being made before. 22/5/24 12.04am Notion 47 cents Support 43 cents Dun be so happy yet.let see 1-2 march where it go. 1/3/24 12.15am. Sell call notion 33-33.5 cents.wait near 30 cents can buy back 22/7/2022 11.38pm
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....
Jameskk
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Posted by Jameskk > 2024-05-20 10:36 | Report Abuse
I think bursa kena rasuah.....no announce " UMA" for Notion