Wednesday, January 4, 2012

JCY sees surge in earnings, approves RM300m capex

KUALA LUMPUR (Jan 4): JCY International Bhd, whose share price had surged in recent weeks, has stated that the group is likely to record a surge in earnings for the quarter ended Dec 31, 2011.

In a statement to Bursa Malaysia on Wednesday, it said based on current available information, the group was likely to record an increase in net profit for the financial quarter ended Dec 31, 2011 'of approximately 1,900%' compared with a year ago where net profit was RM7.5million.

For the quarter ended Dec 31, 2011, it expected net profit to be an increase of 460% compared with the quarter ended Sept 30, 2011's net profit of RM26.4million.

JCY cited the surge in earnings to an increase in average selling prices caused by component shortages arising from the October 2011 floods in Thailand; effective product mix; appreciating US dollar against the ringgit and continuous efficient cost management.

'To cater for the increase in the component demands from the company's major customers, the board of directors has approved a capital expenditure budget of approximately RM300 million over the next 24 months period, for expansion of its facilities in Malaysia, Thailand and China,' it said.

JCY also said barring any unforeseen factors, the company expects to be able to increase its global market share of the hard-disk drive mechanical component industry over the next 24 months.

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