KUALA LUMPUR (May 20): Electronics manufacturing services (EMS) firm Notion VTec Bhd (KL:NOTION) reported a net profit of RM14.04 million in the second quarter ended March 31, 2024 (2QFY2024), a turnaround from the net loss of RM7.77 million a year ago, driven by strong demand for the group’s EMS products.

It recorded earnings per share of 2.72 sen for the quarter, compared to loss per share of 1.51 sen in 2QFY2023, as shown in Notion VTec's bourse filing. The group declared an interim dividend of one sen per share.

Revenue climbed 32% year-on-year to RM111.6 million for 2QFY2024 from RM84.69 million, primarily driven by higher orders in the hard disc drive (HDD) and EMS segments.

Particularly, EMS segment revenue more than doubled to RM36.1 million in 2QFY2024 from RM17.51 million in 2QFY2023, attributed to sustained demand for quality metal components.

Meanwhile, HDD segment revenue also increased by 13% to RM29.56 million from RM26 million a year ago, supported by global inventory shortages and a recovery in Notion Thailand’s HDD machining business.

For the first six months of FY2024 (1HFY2024), the group achieved a net profit of RM22.1 million compared to a net loss of RM11.42 million in 1HFY2023, with revenue climbing by 22% to RM205.39 million from RM168.04 million a year ago.

On prospects, the group sees the trade war creating opportunities for Asean manufacturers, especially in automotive, solar cells, semiconductors, steel, and aluminium products, as multinational corporations seek alternatives to Chinese suppliers.

"Our group is positioned for such opportunities, having been in the manufacturing space for a while and earned a good reputation for product quality and delivery. Consequently, we are discussing a few deals with new potential customers," the group said, adding that it is optimistic about FY2024 being a turnaround year, with 2HFY2024 expected to surpass 1HFY2024.

Prior to the quarterly result release, Notion VTec shares hit a new three-year high on Monday, surging 16.5 or 18.9% to RM1.04. The counter closed at RM1.00, still up 12.5 sen or 14.3%, with some 44.9 million shares traded, giving the group a market capitalisation of RM516.09 million.