Thursday, October 13, 2011

Notion continues to slide on Thai flood woes

KUALA LUMPUR: NOTION VTEC BHD [] shares extended their losses on Thursday, Oct 13 as its Thailand facility remains temporarily closed due to the floods.

At 9.40am, Notion fell seven sen to RM1.52 with 10,000 shares traded.

Maybank Investment Bank Bhd in a note Oct 12 had downgraded Notion to a Hold (from Buy) with lower TP of RM1.50 (from RM2.40), and cut its FY11-13 earnings by 18-43%.

' While share price has fallen by 32% (from peak in Apr '11) and is trading close to its trough valuation, we think negative newsflows will cap its upside: (i) the flood in Thailand is likely to delay the completion of its Thai plant, and (ii) imminent slower global consumer discretionary spending will affect its existing sales, which feed into consumer goods such as cameras, HDDs and auto,' said the research house.

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