Stock Name: JCY
Company Name: JCY INTERNATIONAL BERHAD
Research House: RHB

KUALA LUMPUR: Shares of hard-disk drive manufacturer fell to its historic low of 87.5 sen in late afternoon trade on Wednesday, Sept 1 in the absence of fresh negative news despite RHB Research Institute maintaining a market perform call and fair value of RM1.32.

At 3.31pm, it was down eight sen to 88.5 sen. There were 23.74 million shares done at prices ranging from 87.5 sen to 96 sen.

RHB Research said that JCY, given its reliance on Western Digital and Seagate, was looking to expand its customer base as well as increase its margins.

Going forward, JCY's earnings will be mainly driven by: 1) strong demand for the 2.5'' HDD fuelled by stronger-than-expected demand for mobile PCs and consumer electronics; 2) resilient demand for the 3.5'' HDD stemming for demand for desktops and gaming consoles; and 3) improving corporate and consumer IT spending.

'We maintain our Market Perform call on the stock with a fair value of RM1.32/share based on an unchanged 10x FY11 EPS,' it said.