Notion ... Oct09

A leading listed maker of precision components for hard-disk drives (HDDs), will start making 2.5" HDD components for South Korea's Samsung Co by as early as next month.

Notion can initially make up to 500,000 pieces a month for Samsung with an average selling price estimated at RM4 a piece, and the volume can go up to one million pieces per month by mid-2010. Its qualification to produce for Samsung could be a significant earnings kicker going forward.

Samsung is the world's largest maker of liquid crystal displays, would fit in nicely with Notion's existing customer base.

Notion's biggest cutomers by revenue contribution are Western Digital Corp, the world's second largest maker of HDDs; Hitachi Ltd, Japan's third largest manufacturer; and Nikon Corp, the world's second biggest camera maker.

Currently, some 80 per cent of Notion's sales comes from the from the HDD and digital camera industries, while the remaining 20 per cent is derived from the industrial segment, particularly from electronic braking systems for the automotive industry.

For the year ending September 2009, Notion is poised to post a net profit of RM36.7 million, while for the following year, it is forecast that net profit would expand to RM45.5 million.