Notion VTEC Berhad Reports Q2FY2026 Results: Revenue and Profitability Under Pressure Amid Market Headwinds
Key Highlights from Q2FY2026 Financial Report
- Revenue Decreased: Q2FY2026 revenue was RM106.6 million, down 8.4% year-on-year (YoY) and 12% quarter-on-quarter (QoQ).
- Profitability Impacted: The Group reported a loss after tax of RM4.4 million for Q2FY2026, a reversal from a profit of RM5.3 million in Q2FY2025.
- Gross Profit Margin Declined Sharply: Gross margin dropped to 5.8% from 16.6% YoY due to unfavourable FX and higher production costs, especially surging aluminium prices (up 40%-45% YoY).
- EBITDA and Operating Results Weakened: Q2FY2026 EBITDA halved to RM3.1 million from RM5.4 million in the previous quarter.
- Segmental Performance:
- EMS Segment: Revenue fell 26% YoY, now RM31.7 million, due to global demand softness and intensified competition from China.
- Automotive Segment: Down 13% YoY, now RM24.6 million, but operational stability is maintained via new program ramp-ups.
- HDD/SSD Segment: Up 8% YoY to RM39.7 million, with ongoing investments in capacity and technology (focus on HAMR transition).
- Camera/Industrial Segment: Up 23% YoY to RM10.6 million.
- Negative FX Impact: USD depreciated by 11.4% YoY, further pressuring revenue and margins.
- Rising Production Costs: Quarter-average LME aluminium prices surged by up to 45% YoY.
- Net Assets Per Share: RM0.8067, slightly down from RM0.8266 as at 30 September 2025.
- No Dividend Declared: The Board did not recommend any dividend for the quarter. No dividends were paid in the current period.
- Cash Flow and Financial Position: Net cash generated from operating activities was RM12.4 million for the half-year, but net cash used in investing activities was RM24.9 million (mainly for PPE and investments). Cash and bank balances stood at RM51.3 million as at 31 March 2026.
- Borrowings Increased: Total loans and borrowings rose to RM67.7 million (up from RM59.9 million at end-FY2025), with increased usage of revolving credit and hire purchase facilities.
- Land Disposal Post-Quarter: On 25 May 2026, the Group announced the proposed disposal of a vacant industrial land in Johor for RM27.3 million – this is potentially price-sensitive and could improve liquidity and balance sheet strength in future quarters if approved by authorities.
- Capital Commitments: RM8.65 million approved and contracted for property, plant & equipment purchases.
- Tax: Effective tax rate was higher than statutory due to unallowable expenses.
- No Material Litigation: No ongoing material litigation as of the report date.
- EPS Turned Negative: Basic EPS was (0.82) sen in Q2FY2026 versus 0.97 sen in Q2FY2025, reflecting the loss position.
Important Information for Shareholders
- Profitability Under Pressure: The Group has recorded two consecutive quarters of losses. This could weigh on the share price if the situation does not improve in the near term.
- Land Disposal Could Be Price-Sensitive: The proposed disposal of industrial land for RM27.3 million, if completed, would strengthen the Group’s financial position. Investors should watch for regulatory approvals and completion announcements.
- No Dividend Declared: The lack of dividend payout may disappoint income-focused investors.
- Exposure to Raw Material Price Volatility: The significant increase in aluminium prices has materially affected margins. Any sustained high raw material costs may continue to impact profitability.
- FX Sensitivity: The Group is exposed to USD/MYR fluctuations, with recent USD depreciation having a negative impact on revenue and earnings. Any reversal or further weakening could affect future results.
- Strategic Initiatives Ongoing: The Group is prioritising operational discipline, margin enhancement and selective investments. HDD/SSD capacity expansion and customer diversification could provide upside in the medium term.
- EMS Segment Challenged: Heightened competition and weak global demand could persist, weighing on segment performance.
- Potential for Improved Visibility: The Group sees improving conditions in some industries and is pursuing opportunities aligned with different segment dynamics, but global volatility remains a risk.
Management Outlook
The Board remains cautiously optimistic, expecting that the execution of strategic plans, cost efficiency and diversification initiatives will contribute to improved performance over time. However, management acknowledges the ongoing risks from global macroeconomic volatility, raw material price swings, and rapid technological disruptions.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
Laporan Kewangan Notion VTEC Berhad Suku Kedua FY2026 – Maklumat Terperinci untuk Pelabur
Perkara Utama Laporan Kewangan S2FY2026
- Pendapatan Menurun: Pendapatan S2FY2026 ialah RM106.6 juta, turun 8.4% tahun ke tahun dan 12% suku ke suku.
- Keuntungan Terjejas: Kumpulan melaporkan kerugian selepas cukai RM4.4 juta untuk S2FY2026, berbanding keuntungan RM5.3 juta pada S2FY2025.
- Margin Untung Kasar Merosot: Margin kasar jatuh ke 5.8% daripada 16.6% tahun ke tahun akibat kesan FX tidak memihak dan kos pengeluaran lebih tinggi, khususnya harga aluminium yang melonjak 40%-45% tahun ke tahun.
- EBITDA & Keputusan Operasi Lemah: EBITDA S2FY2026 menurun separuh kepada RM3.1 juta berbanding RM5.4 juta suku sebelumnya.
- Pencapaian Segmen:
- EMS: Pendapatan turun 26% tahun ke tahun kepada RM31.7 juta akibat permintaan global lemah & persaingan dari China.
- Automotif: Turun 13% tahun ke tahun kepada RM24.6 juta, namun kestabilan operasi dikekalkan melalui pelaksanaan program baru.
- HDD/SSD: Naik 8% tahun ke tahun kepada RM39.7 juta dengan fokus kepada perluasan kapasiti & teknologi (HAMR).
- Kamera/Industri: Naik 23% tahun ke tahun kepada RM10.6 juta.
- Kesan FX Negatif: USD menyusut 11.4% tahun ke tahun, menambah tekanan pada pendapatan & margin.
- Kos Pengeluaran Meningkat: Harga aluminium LME sukuan meningkat hingga 45% tahun ke tahun.
- Aset Bersih Setiap Saham: RM0.8067, sedikit menurun dari RM0.8266 pada 30 September 2025.
- Tiada Dividen Diumumkan: Lembaga tidak mencadangkan sebarang dividen untuk suku ini. Tiada dividen dibayar dalam tempoh semasa.
- Aliran Tunai & Kedudukan Kewangan: Tunai bersih daripada operasi ialah RM12.4 juta untuk setengah tahun, manakala RM24.9 juta digunakan untuk pelaburan (terutamanya PPE & pelaburan lain). Baki tunai RM51.3 juta setakat 31 Mac 2026.
- Peningkatan Pinjaman: Jumlah pinjaman meningkat kepada RM67.7 juta (dari RM59.9 juta akhir FY2025), dengan penggunaan kredit bergilir & sewa beli yang tinggi.
- Pelupusan Tanah Selepas Suku: Pada 25 Mei 2026, Kumpulan mengumumkan cadangan pelupusan tanah industri di Johor bernilai RM27.3 juta – potensi impak harga sekiranya diluluskan pihak berkuasa.
- Komitmen Modal: RM8.65 juta diluluskan dan dikontrakkan untuk pembelian PPE.
- Cukai: Kadar cukai efektif lebih tinggi dari statutori akibat perbelanjaan tidak boleh ditolak cukai.
- Tiada Litigasi Material: Tiada litigasi material setakat tarikh laporan.
- Pendapatan Sesaham Negatif: EPS asas (0.82) sen untuk S2FY2026 berbanding 0.97 sen S2FY2025, menunjukkan kerugian.
Perkara Penting untuk Pemegang Saham
- Keuntungan Tertekan: Dua suku berturut-turut mencatatkan kerugian. Ini mungkin memberi kesan negatif kepada harga saham jika berterusan.
- Pelupusan Tanah Berpotensi Sensitif Harga: Jika pelupusan tanah RM27.3 juta diluluskan, ia dapat mengukuhkan kedudukan kewangan Kumpulan. Pantau pengumuman kelulusan & penyelesaian.
- Tiada Dividen: Ketiadaan pembayaran dividen mungkin mengecewakan pelabur berorientasi pendapatan.
- Keterdedahan kepada Volatiliti Harga Bahan Mentah: Kenaikan harga aluminium memberi kesan besar kepada margin. Jika harga kekal tinggi, keuntungan mungkin terus terjejas.
- Sensitiviti FX: Kumpulan terdedah kepada turun naik USD/MYR, dengan penyusutan USD baru-baru ini memberi impak negatif. Sebarang perubahan lanjut boleh mempengaruhi keputusan masa depan.
- Inisiatif Strategik Berterusan: Fokus pada kecekapan operasi, margin & pelaburan terpilih. Perluasan kapasiti HDD/SSD & kepelbagaian pelanggan boleh beri impak positif sederhana panjang.
- Segmen EMS Mencabar: Persaingan sengit dan permintaan global lemah mungkin berterusan & menekan prestasi segmen.
- Potensi Peningkatan Jangka Sederhana: Pengurusan melihat penambahbaikan dalam beberapa industri, tetapi risiko global & makroekonomi kekal tinggi.
Pandangan Pengurusan
Lembaga kekal berwaspada tetapi optimis, dengan harapan pelaksanaan strategi, kecekapan kos dan kepelbagaian akan menyumbang kepada prestasi lebih baik dari masa ke masa. Namun, pengurusan mengakui risiko berterusan daripada ketidaktentuan global, harga bahan mentah dan gangguan teknologi pantas.
Penafian
Artikel ini adalah untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur dinasihatkan menjalankan penilaian sendiri dan mendapatkan nasihat profesional sebelum membuat keputusan pelaburan. Kenyataan pandangan ke hadapan adalah tertakluk kepada risiko dan ketidaktentuan yang boleh menyebabkan keputusan sebenar berbeza secara material.
