JCY International Bhd has done well in the past year since it plunged to a year low of 14 sen in May last year. The counter rose 50% in the past year, touching a year high of 28 sen on March 14.

The company has recovered well since losing its major customer in 2021. It has been making losses since then but JCY is slowly recovering having narrowed its net loss to RM2.6 million for the 3 months ended Dec 31, 2023 from RM32.1 million a year ago.

The improvement net result was due mainly to the improvement of gross margin as a result of the cost rationalisation efforts that the group consistently putting in in the past quarters. Revenue rose to RM126.7 million from RM111.2 million a year earlier due mainly to increse in shipments as an early sign of recovery of demands from customers.

No doubt that loss making companies are a red flag for investors but given the rising interest on JCY, there are positive points. The 31 December 2023 quarter recorded a slight increase in HDD storage market unit shipments seeing a decline to 29 million pieces for the quarter ended 30 September 2023.

Data storage industry’s report of improved nearline and surveillance HDD demand which indicates early signs of recovery for recent months. JCY said it is seeing a slight pick up in its storage portfolio coming off from the bottom.

Its short to medium term strategy remains to strengthen its core in the storage industry while diversifying into other industries. With recovery in the sight for HDD industry, JCY appears to be heading upwards, both share price and financial performance.