JCY International Forecasts Surge In Fiscal 1Q Net Profit

04 Jan 2012

KUALA LUMPUR --JCY International Bhd. (5161.KU)--a Malaysian hard-disk-drive component maker--said Wednesday it is likely to post a substantial year-on-year increase in net profit for its fiscal first quarter. The profit guidance for the three months ended Dec. 31, 2011 is based on factors including increase in average selling prices caused by component shortages arising from flooding in Thailand and appreciation of the U.S. dollar against the ringgit, JCY said in a stock exchange filing. During the same period a year earlier JCY posted a net profit of MYR7.5 million. JCY plans to spend MYR300 million over the next two years to expand its facilities in Malaysia, Thailand and China to cater for the increase in component demand from the company's big customers, it added.

The stock may re-test Wednesday's high of MYR1.20 but it could soon succumb to profit-taking after having climbed more than 66% since December 14. JCY shares ended Wednesday up 2.6% at MYR1.18.