KUALA LUMPUR: Notion VTEC Bhd
is optimistic that it is on course to record revenue and profit in the current financial year, off the back of three consecutive quarters of robust growth.
Following its quarterly result announcement yesterday, the precision components and tools supplier said it expects 4QFY24 to progress at a moderate pace in view of the volatility of the forex.
Meanwhile, Hong Leong Investment Bank (HLIB) Research said a stabilised earnings will allow Notion VTec to position and prepare for further expansion in FY25.
The research firm, which reiterated its "buy" call and target price of RM3.28 on the stock, said it likes its impressive turnaround and longer visibility in its earnings growth trajectory.
"The company is well positioned to capitalise on: increasing adoption of AI; advancements in disk storage capacity; global manufacturing diversification; and revival of E&E sector," it said in a results note.
Notion VTec’s net profit surged to RM20.1mil in the third quarter ended June 30 (3QFY24) compared with RM1.82mil in the same quarter last year.
Revenue jumped 62.8% to RM135.5mil against RM83.2mil while earnings per share (EPS) climbed to 3.9 sen from 0.35 sen posted last year.
The positive surprise was due to stronger-than-expected earnings before interest, tax, depreciation and amortisation (Ebitda) margin.
