Stock With Momentum: Notion VTec

This article first appeared in The Edge Financial Daily, on August 27, 2018.
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Notion VTec Bhd (-ve)

Trading of shares in Notion VTec Bhd (fundamental: 2.25/3, valuation: 1.20/3) also triggered our momentum algorithm last Friday for the first time this year. Trading volume jumped to 19.64 million shares, seven times its 200-day average of 2.65 million shares. The stock closed two sen lower at 73 sen, for a market capitalisation of RM242.61 million.

Notion VTec’s net profit for the third financial quarter ended June 30, 2018 jumped to RM19.19 million, about seven times the RM2.77 million it recorded a year earlier, mainly on higher other operating income and lower operating expenses, while revenue stayed largely flat at RM67.34 million versus RM67.78 million.

In the cumulative first nine months of FY18, Notion VTec’s net profit fell 40% to RM8.26 million from RM13.65 million a year ago; revenue was down 9% to RM186.02 million from RM204.34 million.

Going forward, Notion VTec said it is focusing on increasing its non-core business in the precision parts industry, mainly in multinational corporations located in the country.