Wednesday, December 1, 2010

JCY falls on 4Q net losses

KUALA LUMPUR: Shares of JCY International Bhd fell in active trade on Wednesday, Dec 1 after it reported net losses of RM22.55 million in the fourth quarter ended Sept 30, 2010.

At 9.03am, JCY was down 3.5 sen to 86 sen with 1.21 million shares done after analysts downgraded the company.

The FBM KLCI fell 2.19 points to 1,483.04. Turnover was 16.48 million shares valued at RM16 million. There were 33 gainers, 36 losers and 48 stocks unchanged.

The hard-disk drive manufacturer posted net losses following a decline in the average selling price (ASP) and adverse foreign exchange losses.

Revenue declined 3% to RM485.97 million from RM501.21 million a year ago while loss per share was 1.1 sen compared with earnings per share of 3.59 sen.

JCY, in its outlook, said consumer spending in the US and Europe was still weak and the on-going debt crisis of some of the European countries had continued to affect the recovery of the demand for HDD products.

RHB Research Institute said JCY's FY09/10 core net profit came in at only 77.8% to 71.4% of its and consensus estimates respectively.

'Key variance was higher-than-expected cost of production. We reduce our FY11-12 EPS forecasts by 51.9% and 43.8% respectively to reflect higher production costs and lower HDD shipments. Downgrade to Underperform (from OP),' it said.

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