Notion Vtec Bhd. · MYX:NOTION
Notion Vtec Bhd — Q4 FY2020 Earnings Presentation
11 slides from Notion Vtec Bhd's earnings presentation, 2020
Slide 1: Pivot in direction and mindset
Pivot in direction and mindset NOTION VTEC BHD: Q4 FY2020 (JUL TO SEP) PRESENTATION
Slide 2: Recovery in Q4
FY20(RM’m) Q4 Q3 % change Revenue: 69.6 40.1 +74% PBT: 4.9 (11.3) +43% Recovery in Q4 PAT: 7.5 (10.9) +69% Significant improvement from previous quarter due to improved purchase orders and HDD: 24.0 21.6 +11% uninterrupted production. Auto: 21.5 9.4 +128% Camera: 2.0 1.7 +18% EMS: 19.0 7.1 +168% PPE
Slide 3: FY20 vs FY19
RM’mil FY20 FY19 % change Revenue: 242.3 237.7 +1.9% PBT: 4.2 14.1 -70% FY20 vs FY19 PAT: 6.7 7.5 -11% EMS contributed 82% more than EBIDTA: 41.1 45.1 -9% last FY and resulted in topline growth 1.9% HDD: 98.3 101 -1% PPE segment commenced and will grow Auto: 79 92.6 -14.7% Camera: 11.7 16.6 -29.5% E
Slide 4: Outlook for Metal Business
Starting Jan 2021 supply of aluminium extruded and machined parts to contract manufacturer for delivery to major EV (Electric Vehicle) maker Outlook for overseas Metal Business Notion Thailand starting new machining business for HDD baseplate for supply to top 2 HDD maker A significant win in EV
Slide 5: PPE outlook
Face mask business face challenges from exports ban and limitations, govt price control policy, impeded execution, intense competition and moderate demand. Our earlier projections are too optimistic PPE outlook The glove business will be cornerstone of PPE business and face mask business is an add
Slide 6: Face Mask
Malaysian ban on face mask exports cause delays Halal, FDA and CE certification also cause delays Due to the inability of getting support from suppliers located in China due to travelling ban, there were Face Mask execution challenges Malaysia’ face mask price control also affected the Locally p
Slide 7: Nitrile Gloves
Viewed as long term investment surpasses pandemic shortages to be quality & cost focused Capex budget: RM90 mil and fast tracked since we are placing glove lines in existing factory in Nitrile Gloves Klang Secured NBR latex supply Trading opportunities before and after start of glove lines by end
Slide 8: Will vaccines stop Covid 19?
Fast emergence of vaccines approved for emergency applications to treat symptoms of Covid 19 Will vaccines Target is to achieve 70% population coverage with stop Covid 19? steep challenges International differences in recovery rate makes Challenging to vaccinate 70% of uneven economic recovery an
Slide 9: Making sense of what Notion is doing
Notion is mindful of using Technology. Making sense of Being a high volume precision machined component manufacturer to MNCs what Notion is To evolve to owner of house brand and consumer doing: products in PPE Instead of a pure component Trading is a new activity to break into the nitrile manufa
Slide 10: As always Risks matter
Question: is Notion late in the nitrile glove game? Question: will the nitrile glove demand and ASP hold up when the vaccines emerge and pandemic As always Risks slows down? matter: Question: why the delay and when can we see the effects of PPE on financials? Risk mitigation is always on our mind
Slide 11: Final thoughts
Notion’s management is pro-active but not infallible We take calculated risks and embrace failures and successes Final thoughts Risk and opportunity assessment: a daily occurrence Be bold and strong. Be courageous. Notion’s mindset: Technology, Entrepreneur & Rome was not built in one day Speed