Bullish sales guidance. We came away from Notion’s analyst briefing
positive on its near-term earnings momentum. Management is bullish on
its prospective sales (FY12: +34%, FY13: +26%), supported by the new
baseplate outsourcing demand. We think market’s skepticism on the
sustainability of Notion’s post Thai flood-driven sales has been largely
addressed by Minebea’s decision to outsource for the mediumterm, at
least. We upgrade our FY12-14 EPS by 11-32% but maintain our TP, pegging
to its mean PER of 8x (4x EV/EBITDA previously).
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Source: Maybank Research - 21 May 2012
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