KUALA LUMPUR (May 21): JCY International Bhd was among top actives on Bursa Malaysia, after the hard disk drive components maker released an impressive set of  financial results for the second quarter ended March 31, 2015 (2QFY15).

However, there is not much movement on JCY's share price (fundamental: 2.1; valuation: 1.8). It is flat at 77 sen, with some 10.3 million shares traded, although it has chalked up 34% growth in net profit to RM51.15 million or 2.52 sen per share for 2QFY15.

And the board has declared a dividend payment of 1.25 sen per share.

The higher net profit was attributed to the strengthening of the US dollar against the ringgit and better average selling prices.

Year-to-date, its net profit rose 48% to RM101.34 million or 4.99 sen per share, from RM68.36 million or 3.37 sen per share last year, while revenue rose 5% to RM996.67 million from RM952.13 million a year earlier.

JCY share price has been on a steady climb since mid-December last year, rising from 47 sen to current level. The stock has gained nearly 63% in the past six months.

According to TheEdge Research, the stock is currently trading at price-earnings ratio of 11.23 times.

Its fundamental score of 2.1 is rather high on the scale of one to three. This indicates that JCY has a strong balance sheet with net cash position. As at March 31, the company had cash pile of RM329.1 million, while its long-term borrowings were RM1.89 million and short-term debts of RM104.68 million.

Going forward, the company said original design manufacturer (ODM) shipment numbers released for the quarter ended March 31 continued to reveal softness in personal computer builds with output down slightly quarter-on-quarter.

However, enterprise shipments are expected to recover in the second half of the year, on increased demand from traditional storage or server vendors, as well as hyperscale companies, the company said.

JCY International also said the Sony Playstation 4 finally commenced selling in China towards the end of March 2015, and the prospective PC refresh cycle resulting from Windows 10 may help to improve hard disc drive (HDD) shipments for the second half of 2015.

The company said it will continue to automate its production process to improve productivity and reduce reliance on manual workers.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)