Notion’s 9MFY11 net profit of RM34.3m was in line with consensus forecast but ahead of our numbers at 77% and 84% of the estimates respectively, due to improved showing from its camera segment as Nikon’s restoration of production surged ahead of its initial schedule. While we remain cautious over the gloomy outlook for consumer electronics sales amid renewed fears over Europe’s debt crisis, we like Notion’s increasing presence in the camera segment on its established tie-up with key customer Nikon as we step into FY12. Hence, we upgrade our call to BUY at a revised Fair Value of RM2.25 based on 7x FY12 PER.
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