Thursday, January 14, 2010

Notion Vtec (RM3.32): Still cheap, worth accumulating now

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.
Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

No comments:

Post a Comment