Stock Name: NOTION
Company Name: NOTION VTEC BHD
KUALA LUMPUR: NOTION VTEC BHD [] shares slipped on Monday, Aug 15 after the company announced last Friday that negotiations with various parties for a possible takeover of the company had ceased and there were no further discussions.
At 10.25am, Notion fell six sen to RM1.91 with 12,000 shares traded.
ECM Libra Research in a note Aug 15 maintained its Buy call on Notion and said a key positive surprise was the company securing a new 4+3 year contract with TRW Automotive Holdings Corp to manufacture parts for the use of hydraulics braking system, contributing additional RM20 million revenue in FY12, with 15% net margins.
'Although we revise down our FY11-13 EPS by 14-25% after taking into account the weaker USD exchange rate and potential cutback in customer orders from an economic slowdown, we maintain BUY after rolling over our target price to FY12 EPS.
'We roll-over our target price to FY12 EPS while maintaining the historical 5-year average P/E of 8.7 times. ''As such, our new target price is reduced slightly to RM2.43 (from RM2.50 previously),' it said.
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Company Name: NOTION VTEC BHD
| Research House: ECMLIBRA | Price Call: BUY | Target Price: 2.43 |
KUALA LUMPUR: NOTION VTEC BHD [] shares slipped on Monday, Aug 15 after the company announced last Friday that negotiations with various parties for a possible takeover of the company had ceased and there were no further discussions.
At 10.25am, Notion fell six sen to RM1.91 with 12,000 shares traded.
ECM Libra Research in a note Aug 15 maintained its Buy call on Notion and said a key positive surprise was the company securing a new 4+3 year contract with TRW Automotive Holdings Corp to manufacture parts for the use of hydraulics braking system, contributing additional RM20 million revenue in FY12, with 15% net margins.
'Although we revise down our FY11-13 EPS by 14-25% after taking into account the weaker USD exchange rate and potential cutback in customer orders from an economic slowdown, we maintain BUY after rolling over our target price to FY12 EPS.
'We roll-over our target price to FY12 EPS while maintaining the historical 5-year average P/E of 8.7 times. ''As such, our new target price is reduced slightly to RM2.43 (from RM2.50 previously),' it said.
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