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

KUALA LUMPUR: Shares of JYC International Bhd rebounded in late morning trade on Thursday, Sept 2 as CIMB Research said the recent selldown was unjustified and instead viewed this as an opportunity to accumulate the shares.

At 11.58am, it was up 8.5 sen to 98 sen with 16.7 million shares done.

The FBM KLCI was up 1.66 points to 1,433.62. Turnover was 442.22 million shares valued at RM695.59 million.

CIMB Research continued to rate the stock an OUTPERFORM with an unchanged target price of RM1.88, still based on 12.0 times CY11 P/E.

'Potential catalysts for the stock include (1) turnaround of the hard disk drive sector, (2) more meaningful contributions from Hitachi and Samsung, and (3) positive news on its successful penetration into Toshiba,' it said.

The research house said the foreign labour issue was solved in mid-August;

The Edge FinancialDaily reported that JCY's share price had plunged more than 22% over the past 1'' weeks, due to a delayed market response to labour protests in mid-August.

CIMB Research said: 'This was discussed during the results briefing on Aug 20. We understand that the issue was quickly addressed and there was minimal disruption to production. We do not think the share price plunge is justified and that with the big decline in share price, the upside now is very significant at 109%,' it said.