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JCY pre-tax profit for Q1 surges to RM77.78mil

Submitted by on February 24, 2010 – 11:07 PMNo Comment | 919 views


KUALA LUMPUR, Feb 23 (Bernama) Disk-drive component maker JCY International Bhd, has posted a higher pre-tax profit of RM77.788 million for its first quarter ended Dec 31, 2009, as compared with RM24.02 million previously.

The group, enroute to a listing on the main market of Bursa Malaysia, also recorded a revenue of RM528.2 million for the quarter, which was 22.9 percent higher when compared with the RM429.792 million posted previously.

“The improvement in revenue is due to a much higher demand from both our key customers, Western Digital & Seagate.

“The improved pre-tax profit is attributed to various factors like product mix, economy of scale, capacity utilisation, cost control measures implemented and raw materials cost,” said JCY, which will be listed on Thursday, in a filling to the Exchange.

The institutional offer price is RM1.60 per share while the retail price is RM1.52.

During the quarter, the Group had completed the disposal of a piece of land with a building at Tebrau IV, Johor Bahru, which is included in the non-current assets held for sales and realised a gain of approximately RM185,000.

“Barring any unforeseen circumstances, the directors of JCY expect the financial performance of the group for the financial year ending Sept 30, 2010 to be satisfactory.

“This is amid an increase in orders from key customers in view of the prevailing market conditions, among others, in the desktop and netbook segments,” it said.

Other segments that have seen an increase in orders are the mobile and consumer electronic segments, in the Hard Disk Drive (HDD) industry.- BERNAMA

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News adopted from: http://biz.thestar.com.my

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