Much has been written about Notion Vtec by Salvatore Dali in his posts, so I won't repeat here again.
- Resilient and high net margins in the range of 22%-25% since IPO in 2005
- Net profit to rise to about RM60mil in 2010 from RM36mil in 2009
- PER'09 and '10 at 12.9x and 7.8x respectively
- Nikon to hold 10% of Notion Vtec, further establishing Notion's business with Nikon and elevate Notion's branding among clients.
- Earnings growth expected to be strong from anticipated gains in market share.
- Backed by its earnings growth, high net margins, high ROE, higher reputation and Nikon as a shareholder, it has no business trading at PER'10 of 7.8x. Share price could potentially reach PER of 12-14x, breaching RM5.00 mark.
- Share base of 140.7 mil only, rather easy to nudge up the share price.
- Market Cap: RM467.2 mil
- Expected Div Yield: 3-4%, decent.