Update JCY returns to the black with 2Q profit RM38.1m, dividend 1.25 sen

by **Cals** Tue 20 May 2014, 00:10

Update JCY returns to the black with 2Q profit RM38.1m, dividend 1.25 sen

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 19 May 2014 19:08

KUALA LUMPUR (May 19): JCY International Bhd has returned to the black with a net profit of RM38.1 million posted in the second quarter ended Mar 31, 2014, from a loss of RM20.8 million a year ago.

Revenue rose 18.4% year-on-year to RM475.3 million from RM401.4 million.

JCY said it recommended the declaration and payment of a single tier tax exempt second interim dividend of 1.25 sen per ordinary share.

In a filing to the stock exchange, the electronics manufacturer said for the half-year period, net profit chalked RM68.4 million versus a loss of RM46.5 million in the previous period, while revenue recorded RM952.1 million from RM778.2 million a year earlier.

JCY said the profit improvement was in line with higher revenue and improved operational efficiency in the current quarter.

The firm added the higher revenue was mainly due to the higher quantities shipped, better average exchange rate of US dollar against the ringgit and improved average selling prices.

“The decline in PC shipments has slowed down in recent quarters, resulting in a more stable global environment for hard disk drive (HDD) products,” said JCY on future prospects.

“Based on our customers' results and announcements, we continue to see demand stabilizing in HDD as part of the PC refresh cycle and positive long term demand trends in the enterprise space.”