Stock Name: NOTION
Company Name: NOTION VTEC BHD
Research House: ECMLIBRA
Company Name: NOTION VTEC BHD
Research House: ECMLIBRA
ECMLibra Investment Research is maintaining its "buy" call for metal processor and tools maker, Notion VTEC Bhd's shares, as the company will start camera body mount production for Nikon.
The research house has put a target price of RM2.50 for Notion VTEC shares based on the historical five-year average price earnings ratio of 8.7 times.
"The contribution from the new business, both in the body mount and sub-assembly of lens, will more than compensate for the expected reduction in orders for cam barrels," said ECMLibra in its research note here, today.
Notion VTEC recently announced that its third factory in Klang will be supplied with raw materials from Nikon for the body mount production with immediate effect.
The company expect the new business to contribute between RM36 million to RM60 million in sales annually, which would add between 12.9 per cent - 21.5 per cent to ECMLibra's revenue forecast for Notion VTEC. -- Bernama
The research house has put a target price of RM2.50 for Notion VTEC shares based on the historical five-year average price earnings ratio of 8.7 times.
"The contribution from the new business, both in the body mount and sub-assembly of lens, will more than compensate for the expected reduction in orders for cam barrels," said ECMLibra in its research note here, today.
Notion VTEC recently announced that its third factory in Klang will be supplied with raw materials from Nikon for the body mount production with immediate effect.
The company expect the new business to contribute between RM36 million to RM60 million in sales annually, which would add between 12.9 per cent - 21.5 per cent to ECMLibra's revenue forecast for Notion VTEC. -- Bernama
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