According to OSK Research, by having as its customers the biggest names in the HDD and digital camera industries – the likes of
Western Digital, Hitachi and Nikon – Notion VTec’s business will likely mirror the performance of the two industries. Independent research has shown that demand for HDD will continue to rise in 2010 after experiencing its first contraction in sales in 2009 following many years of growth. Shipment of digital cameras, meanwhile, is also expected to be flat or to drop slightly for the first time in 2009 due to the global economic recession after a period of growth from at least 2003, but is also expected to resume growth in 2010. Digital camera shipments in 2010 are expected to increase by 3%.
New Boost For Earning Drivers
Is Asia Technology And IT Market Growth Still ?
Looking into its history, this HDD and digital camera maker has seen stellar growth over the last few years. The company entered the
HDD industry in 1997 with just sales revenue of around RM41 million then. And just four years back, the company was just a smaller-based Mesdaq listed company on Bursa Malaysia.
However, with its strong revenue and earnings growth, the company graduated to a main board listing at the height of the US financial crisis last year, which was probably not good timing as the company shares were sold down together with the equity market bloodbath worldwide then to as low as RM0.16 in March this year.
Technology VS Global Economic
Year 2008 was unforgettable year for most companies worldwide as the world recession kicked in. However, there is now a growing
sense of optimism that with most countries’ economies and equity markets stabilizing worldwide since March this year, the worst may be over for most companies’ earnings going forward into next year. Yet, quite a number of economists are still predicting the possibility of a double-dip recession in the US next year, which could tilt the scale back into a W-shaped recession for the world next year, one which could be worse than the one seen in 2008. While these predictions are now in the minority camp, equity investors will probably have to be mindful of these risks when selecting companies to be invested in their portfolios.
What is Malaysia Latest Economy Status?
Don’t be surprised and panic when your investments in capital guaranteed funds (CGFs) give you zero returns. This is increasingly
becoming the norm for this group of products.
Seen as the closest alternative to the relatively secure fixed deposit (FD), CGFs are designed to safeguard the capital of investors with the promise of returns higher than FD rates.
However, given the challenging economic and stock market conditions, many of these funds have performed dismally in the last one year or so. At best, many dished out marginal returns while others matured at par value, meaning that investors have only got back their capital.
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