Tuesday, 23 August 2011
JCY in Red Alert
JCY International just posted its FY11 Q3 financial result, it makes a loss of RM 32mil and for the first time since listed in Feb 2010, its cumulative net profit falls into red.
The loss in current quarter is mainly due to lower sales and high material cost, with global demand of PC weaken. Recent fear of another round of recession definitely does not help JCY.
I still remember the time when JCY was listed, it is regarded as one of the biggest tech IPO in south east Asia. It is the largest HDD manufacturer in Malaysia, with a revenue 10x more than Notion Vtec and 4x more than Eng Technology. Its revenue and profit in the first 3 quarters of 2010 are impressive. However after that, everything seems to go wrong with JCY.
There is a remarkable turn in JCY's profit, together with the worrying reduction in its revenue.
Today JCY opens at 45sen, down 2sen from yesterday's close. From an IPO price of RM1.52 merely one and half year ago, JCY has seen 70% of its value wiped off. Those who bought the share at its high of RM1.95 in April 2010 and hold until now will suffer a substantial paper loss.
JCY since listed. Going downhill.
What about the whole FY2011 result 3 months later? Can JCY turn its fate around? I don't think so. Perhaps it will end the FY in red, from a RM176mil profit last year.