Upgrade to Buy. Notion may post a minor loss of around RM5m in 1QFY12
(4QFY11: RM12m net profit) on flood-caused provisioning for its Thai
plant. However, we see a strong rebound in sequential earnings (led by
the HDD segment), which could prompt consensus to upgrade its FY12
estimates. We raise our FY12 EPS forecast by 12%, and now expect 6% YoY
growth (-5% previously). We upgrade the stock to a Buy, with a higher TP
of RM2.50 (+67%) on 4x EV/EBITDA.
Maybank Research 20 Feb 2012
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