December 14, 2010

NOTION - Notion Vtec a 'buy' at HwangDBS

Stock Name: NOTION
Company Name: NOTION VTEC BHD
Research House: HWANGDBS



HwangDBS has rated Notion Vtec a "buy" with a lower target price of RM1.64.

The SLR camera division is expected to grow strongly on expectations of orders for new models of cam barrels and lens rings from major customer, Nikon, and other camera makers, noted HwangDBS.

"YTD-Oct 10 industry shipment volume was strong, growing 17 per cent year-on-year to 100.2 million units and likely to beat CIPA's full year projection of 109.9 million units (+3.8 per cent).

"We expect FY11F SLR camera division revenue to grow 35 per cent year-on-year to RM132 million, and account for 53 per cent of group revenue (vs 44 per cent in FY10)," said the research firm.

Notion has also started to buy back shares (3.7 million shares or 2.4 per cent of paid-up capital YTD-2010).

Near term share price catalysts are more orders for SLR camera components, recovering demand for mainstream PCs, and successful new business ventures.

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