Notion Vtec Bhd. · MYX:NOTION
Notion Vtec Bhd — Q2 2020 Earnings Presentation
17 slides from Notion Vtec Bhd's earnings presentation, Jun 4, 2020
Slide 1: A New Paradigm Shift
A New Paradigm Shift Notion VTec Bhd Q2 FY2020 Results Dated 4 June 2020
Slide 2: Caveat Emptor Applies
Caveat Emptor Applies: This is not investment advice but business outlook with unaudited forward projections meant for presentational purposes not for making investment decisions. Investors please seek professional advice for buying and selling decisions. Investment in stocks is risky. Add a footer
Slide 3: About Us
HDD Automotive Camera EMS Notion’s approach to business strategy: • Diversification of industries & customers in high volume manufacture. About Us • Integrated manufacture. We are a diversified precision engineering and manufacturing • Scalable business. group of companies mainly in HDD, Automotive,
Slide 4: QoQ Comparison Revenue RM'mils
QoQ Q2 Q1 Q4 Q3 FY2020 FY2020 FY2019 FY2019 ComparisonRevenue 62.3 70.3 65 56.4 RM’mils COGS (58.2) (55.6) (49.4) (48) Gross Profit 4.0 14.7 15.6 8.0 Other Op Profit 4.5 16.0 12.0 1.9 Other Op Expenses (11.0) (11.8) (11.7) (7.7) Operating (2.4) 18.9 15.8 2.2 Profit/Loss Finance cost (1.1) (1.1) (1.2
Slide 5: Rolling Quarter on Quarter Comparison
Rolling Quarter on Quarter Comparison 80 Sales vs PAT/Loss (removing insurance claims) 70.3 mil 70 62.3 mil 65 mil 56.4 mil 60 50 40 30 20 10 5.1 mil 4.6 mil 1.8 mil 0 Q2 FY2020 Q1 FY2020 Q4 FY2019 Q3 FY2019 -10 (3.7) mil Sales Add a footer TREY 5 re s e a rc h
Slide 6: Comparison of Segments
Comparison of Segments Segmental (RM millions) Q1 FY2020 Q2 FY2020 Segment RM’million Segment RM’millions % change s HDD 24.9 -10% HDD 27.6 Automotive 22.4 -12% Automotive 25.4 Camera 3.0 -39% Camera 5.0 EMS 11.8 -3% EMS 12.2 Total 62.3 -11% Total 70.3 TREY 6 re s e a rc h
Slide 7: Reasons for Losses in Q2
Reasons for Losses in Q2 1. Under utilised capacity: under-absorption of overheads to COGS of RM7.3 mil 2. Additional purchase of aluminium billet for extrusion startup of RM0.4 mil 3. Additional renovation cost on face mask production of RM0.4 mil 4. Loss of orders contributions due to China supply
Slide 8: A Quantum Leap Strategy
A Quantum Leap Strategy Notion has embarked instead of an incremental to a quantum leap strategy TREY 8 re s e a rc h
Slide 9: 3 Ply Surgical and N95
3 Ply Surgical and N95 Add a footer TREY 9 re s e a rc h
Slide 10: Healthcare Products Investments
Healthcare Products Investments Long term investments in: • Surgical 3 ply face mask • Medical 4 or 5 ply face mask/respirator N95 • PP MB fabric filter production • PP resin additive production as feed stock to PP MB • Later PP spunbond (SB) production Capacity: • 3 ply of 10 million pcs per month
Slide 11: Why wearing a Face Mask is a new norm?
Why wearing a Face Mask is a new norm? What is driving this industry: • Panic buying • China imported face mask/respirators as its face mask output was 20 mil a day. Current output 120 mil face mask a day • Chinese workers of 560 mil need daily 400 mil face masks, the sustainable daily demand is 150
Slide 12: Face Mask will follow the way of Hand Gloves?
Face Mask will follow the way of Hand Gloves? • Market is divided into: 1) N95 respirators & 3 ply surgical for healthcare staff and doctors, testing staff, front- liners 2) 3 ply surgical face masks for the general public • Social distancing will stay for a long time and wearing a face mask reduces
Slide 13: A Quantum Leap Strategy
A Quantum Leap Strategy In the healthcare business sector, there are a couple of directions we can expand: 1. Expand 3 ply surgical mask output 2. Convert to exporting surgical mask 3. Start medical N95 grade mask/respirators for export 4. Expand PP meltblown output 5. Start PP resin additive produc
Slide 14: Notion: Healthcare Products Revenue
Notion: Healthcare Products Revenue Assumptions: • Face mask 3 ply we assume RM1 a unit price • PP MB we assume USD50,000 a ton Revenue each month: • 3 ply face mask max revenue of 10 mil pcs using 10 tons PP MB a month: RM10 million • PP MB max revenue on balance 40 tons a month: USD2 million or RM
Slide 15: Notion: Key expansion Catalysts next 3 months
Notion: Key expansion Catalysts next 3 months: • 3 or 4 ply face mask expansion of 16 mil pcs a month: RM16 mil potential sales • PP meltblown expansion of 50 tons or more: RM10.9 mil potential sales • N95 respirators expansion of 2 mil pcs a month: assume RM4 a piece: Potential RM8 mil sales • Tota
Slide 16: Conclusions of New Paradigm Shift Strategy
Conclusions of New Paradigm Shift Strategy • Metals business + new Healthcare Products. Common: automated machines and high volume & quality manufacture. A new Paradigm Shift • HDD growth sector for now, the EMS and Automotive sectors recovery in late 2021 but HDD spacer growth is limited by competi
Slide 17: Thank You
Thank You Thoo Chow Fah Executive Chairman Notion VTec Bhd www.notionvtec.com TREY 17 re s e a rc h