JCY positive of financial position for FY15

KUALA LUMPUR: JCY International Bhd, which has set aside up to RM100 million as capital expenditure (capex) for the financial year ending September 30, 2015, is optimistic that its financial performance will stabilize moving forward based on the global shipment figures for hard disk drives (HDD).
"The number of vendors and competitors have reduced, hence I would say that most of our competitors are not many financially as sound as JCY, so I think in the longer term, we stand a better chance of competing. And I feel that the earnings for JCY has now stabilised, not like in the past where there were a lot of ups and downs," its executive director Datuk James Wong said in a media briefing here last Friday.
For the third quarter ended June 30, 2014, JCY posted a net profit of RM25.03 million versus a net loss of RM12.83 million in the previous corresponding period, mainly due to higher revenue and improved operational efficiency.
This brought its nine-month profit to RM93.38 million, a turnaround from the RM59.34 million net loss it made a year ago.
CY mainly supplies HDD mechanical components to Western Digital and Seagate, which are among the largest players in the HDD market globally.
According to Wong, global shipments for the HDD market stood at 137.93 million pieces in the second quarter of 2014 and are expected to exceed 140 million pieces in the third and fourth quarters, which bodes well for the group.
"First half tends to be slower, compared with the second half," he said.
Despite shipments for personal computers continuing to drop, he noted that demand from the enterprise drive segment has been encouraging, with a higher gross profit margin of 70% to 80% compared with the personal computer segment.