♦ Within expectations, but below consensus. JCY reported 9MFY09/10
core net profit of RM206.3m, which accounted for 84.2% of our and
67.2% of consensus full-year estimates respectively. We consider this to
be in line with our estimates as there could be potential earnings
weakness in the coming quarter as demand for hard disk drives (HDD)
moderates and price competition intensifies.
JCY International Berhad : Lower Shipments In 3QFY09/10 - 23/08/2010
Showing posts with label JCY International. Show all posts
Showing posts with label JCY International. Show all posts
Monday, August 23, 2010
Friday, June 25, 2010
Corporate Highlights - 25/6/2010
♦ Top Glove
Briefing Note : Demand For Gloves Still Positive
♦ JCY International Berhad
New Coverage : Riding The Technology Wave
♦ QSR Brands
Visit Note : Value In Quick Service Restaurant Business
Corporate Highlights - 25/6/2010
Briefing Note : Demand For Gloves Still Positive
♦ JCY International Berhad
New Coverage : Riding The Technology Wave
♦ QSR Brands
Visit Note : Value In Quick Service Restaurant Business
Corporate Highlights - 25/6/2010
JCY International Berhad - Riding The Technology Wave - 25/6/2010
One of the largest HDD component manufacturers. JCY International (JCY) is principally involved in precision engineering for hard disk drive (HDD) mechanical components, with plants in Malaysia, Thailand and China. The company is one of the largest HDD component manufacturers in the world with an estimated monthly capacity of 32m pieces.
JCY International Berhad - Riding The Technology Wave - 25/6/2010
JCY International Berhad - Riding The Technology Wave - 25/6/2010
RHB Equity 360° - 25 June 2010 (JCY, Top Glove, IJM Land, QSR, Gamuda, SapuraCrest; Technical: HL Bank)
New Coverage
- JCY International is principally involved in precision engineering for hard disk drive mechanical components, with plants in Malaysia, Thailand and China. The company is one of the largest HDD component manufacturers in the world with an estimated monthly capacity of 32m pieces.
- JCY’s main customers are the world’s top HDD vendors i.e. Western Digital and Seagate. Together, they combine a market share of 59%. JCY is estimated to command a global market share of 25% for the base plate, 16% of the top cover, and 12% of the APFA.
- We like JCY given: 1) its proven track record of manufacturing capability; 2) it is a leading HDD component manufacturer; and 3) its ability to diversify into various HDD components.
- We estimate FY09-12 EPS CAGR of 28.4% on good earnings visibility given the strong demand outlook for hard disk drives. We have assumed a target PER of 12x for JCY after imputing a discount to the peers’ weighted average FY11 PER of 13.6x to reflect its mid-range market cap.
- We initiate coverage on JCY with an Outperform call and a fair value of RM2.16 based on 12x FY11 PER.
RHB Equity 360° - 25 June 2010 (JCY, Top Glove, IJM Land, QSR, Gamuda, SapuraCrest; Technical: HL Bank)
- JCY International is principally involved in precision engineering for hard disk drive mechanical components, with plants in Malaysia, Thailand and China. The company is one of the largest HDD component manufacturers in the world with an estimated monthly capacity of 32m pieces.
- JCY’s main customers are the world’s top HDD vendors i.e. Western Digital and Seagate. Together, they combine a market share of 59%. JCY is estimated to command a global market share of 25% for the base plate, 16% of the top cover, and 12% of the APFA.
- We like JCY given: 1) its proven track record of manufacturing capability; 2) it is a leading HDD component manufacturer; and 3) its ability to diversify into various HDD components.
- We estimate FY09-12 EPS CAGR of 28.4% on good earnings visibility given the strong demand outlook for hard disk drives. We have assumed a target PER of 12x for JCY after imputing a discount to the peers’ weighted average FY11 PER of 13.6x to reflect its mid-range market cap.
- We initiate coverage on JCY with an Outperform call and a fair value of RM2.16 based on 12x FY11 PER.
RHB Equity 360° - 25 June 2010 (JCY, Top Glove, IJM Land, QSR, Gamuda, SapuraCrest; Technical: HL Bank)