JCY’s Q2 earnings improve on favourable exchange rate

PETALING JAYA: JCY International Bhd saw a net profit of RM15.41 million in the second quarter ended March 31, 2017 compared with a net loss of RM6.43 million a year ago, due mainly to the US dollar’s favourable exchange rate against the ringgit.

The group posted revenue of RM406.7 million for the quarter, 11.1% lower than RM457.29 million in the previous year’s corresponding quarter, due mainly to lower sales volume and a lower average selling price.

For the six months period, its net profit rose 64.4% to RM57.48 million from RM34.97 a year ago, while revenue fell 16.8% to RM819.67 compared with RM985.45 million in the previous year’s corresponding period.

On prospects, JCY expects the total addressable market to remain at around 100 million per quarter with minor seasonal variation in the near term.

It said the average capacity for hard disk drive (HDD) continues to increase. The demand for 10TB drives should accelerate in the second half of 2017 and it appears that several hyperscale customers (end user of HDD) are looking to shift to 10TB solutions within this time frame. These transitions could create tight supply conditions both for 10TB drives and could benefit hyperscale server component suppliers.

“JCY continues to be competitive in the HDD space. We will also strive to leverage our operational efficiency and economies of scale to achieve reasonable returns from our business,” JCY said.