KUALA LUMPUR (May 20): JCY International Bhd saw its net profit increased 34% to RM51.15 million or 2.52 sen per share in the second quarter of financial year 2015 ended March 31, 2015 (2QFY15), compared to RM38.1 million or 1.88 sen per share in the previous corresponding quarter, due to weaker ringgit against the US dollar and better average selling prices (ASP).
In a filing with Bursa Malaysia today, JCY International (fundamental: 2.1; valuation: 1.8) recorded a 7.044% increase in revenue to RM508.8 million in 2QFY15, compared to RM475.32 million in the second quarter of financial year 2014 (2QFY14).
Year-to-date (YTD), net profit rose 48% to RM101.34 million or 4.99 sen per share, compared to RM68.36 million or 3.37 sen per share last year; while revenue rose 4.68% to RM996.67 million, compared to RM952.13 million last year.
The company has declared dividend of 1.25 sen per share.
In a statement, JCY International said gross profit margin in 2QFY15 stood at 10%.
The company said the improved performance was mainly attributable to the favourable exchange rate of US$ against the ringgit and better ASP.
JCY International's non-executive chairman Rozali Mohamed Ali said prudent financial management and with investment in automation processes have resulted in improvements in operational efficiency.
“This has enabled us to maintain our steady performance over the last quarter,” he added.
On its outlook, the company said original design manufacturer (ODM) shipment numbers that had been released recently for quarter ended March 31, continue to reveal softness in personal computer (PC) builds with output down slightly, compared with the shipment number in the previous financial 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 demand for cloud infrastructure and enterprise applications will continue to make up for the reduction in PC shipments,” the statement read.
“The recent appreciation of the US$ relative to the ringgit will continue to benefit JCY International’s results, as all sales are denominated in US dollar.”
The company said it will continue to automate its production process to improve productivity and reduce reliance on manual workers.
JCY International's share price was flat at 77 sen today, with a market capitalisation of RM1.573 billion.
(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.)