Notion Vtec has released its 2012 Q3 financial result. Its revenue rises 57% YoY or 13% QoQ to RM95.8 million, while net profit surges 96% YoY or 28.8% QoQ to RM19.8 miilion. Both represent a new record high for Notion.
Notion will give out interim tax-exempt dividend of 1sen, ex on 3rd Sep 2012.
| Rm mil | Revenue | Net profit |
| 2011 Q1 | 60 | 13.4 |
| Q2 | 54 | 10.8 |
| Q3 | 61 | 10.1 |
| Q4 | 62 | 12.5 |
| 2012 Q1 | 40 | -4.8 |
| Q2 | 85 | 15.5 |
| Q3 | 96 | 19.8 |
The rise in revenue and profit are mainly contributed by more business. After the Thai flood and Japan Tsunami, Notion's business seems to get better. It secures new customers for hard disc drive due to shortage of supply worldwide. It gets more jobs from Nikon after the camera manufacturer's factory in Japan was seriously affected by Tsunami.
In the next quarter of Q4, it is expected that its Thai plant will resume full operation and its Ijuk aluminum recovery plant will commence operation. Its venture in China will also scheduled to start in Q2 of 2013 (Jan-Mac 2013).
There is a very real concern that whether hard disc drive business will sustain in the near future, given the popularity of tablet computer such as ipad, samsung galaxy etc. The emergence of ultrabook may have given some room for HDD industry to breathe but how long can it sustain?
Notion has successfully spread the risk by increasing its camera parts manufacturing business, thus it will not be affected to drastically by a fall in HDD industry.
Notion's future looks promising. It can be a good stock to hold long term until something in the industry or management change.
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