Dear Friends of i3 Forum (Please read as we type now)

As we expected JCY posted another set of Good Turnaround Profits

Refer Bursa

See

Cash and bank balances 

Rm155,708,000 (2024)

Rm 103,126,000 (2023)

Cash YoY is Up Rm52,582,000 or increased by 50.9%

JCY already Cash Rich

Now More CASH HAS FLOWED IN

Now see Borrowings

Short term borrowings

Rm 34,783,000 (2024)

Rm 44,143,000 (2023)

Borrowings improved by Rm9,360,000

So Borrowings pared down by 21.2%

EXCELLENT!

EXCELLENT!!

CLAP!

CLAP!!

CLAP!!!

Cash Increased And Borrowings Down?

Let's see Total Cash less Debt

So 

Rm155,708,000 - Rm34,784,000

= Rm120.924 Milions

How Much Per Share?

​

5.74 sen per share net cash

It is rare to see A Tech Company even after 2 years of losses turn into a Net Cash entity

Look forward Refer Bursa

Detailed Analysis for current quarter and cumulative period

The Group has been resilient and returned to profitability in the second quarter ended 31 March

2024 after recording losses for the past two financial years ended 30 September 2022 and 2023.

Net profit for the 6-month financial period ended (“FPE”) 31 March 2024 amounted to RM2.7

million versus a net loss of RM57.4 million for the 6-month FPE 31 March 2023, on the back of a

rise in demand for both hard disk drives (“HDD”) and solid-state drives, coupled with an

improved cost structure.

The positive momentum continues into the current reporting quarter (ended 30th June 2024).

The Group recorded a revenue of RM165.3 million for the reporting period, this represents an

increment of 23.8% in revenue for the reporting quarter compared to the previous year's

corresponding period. The Group recorded a net profit of RM9.9 million for the reporting

quarter, compared to net loss of RM3.6 million recorded in the previous year's corresponding

period. The Group’s two straight quarters of profit is significant given its capacity utilization rate

is just reaching 50% in the current reported quarter.

For the reported quarter, cash generated from operating activities amounted to RM21.8 mil.

Cash balance improved to RM 155.7 mil, with no changes in bank borrowings (RM 34.8 mil).

Note this

 The Group’s two straight quarters of profit is significant given its capacity utilization rate

is just reaching 50% in the current reported quarter.

VERY SIGNIFICANT

TWO STRAIGHT QTRS OF PROFITS BUT UTILIZATION RATE JUST REACHED 50%

IN OTHER WORDS THERE IS MORE ROOM FOR GROWTH

AND HOW DID IT INCREASE BY SUCH GOOD PROFIT MARGINS EVEN THOUGH SALE CAPACITY UP A MODEST SUM

See

FUTURE PROSPECT

The Group recorded a revenue of RM165.3 million for the reporting period, this represents an

increment of 12.4% compared to RM147.1 million revenue recorded in the immediate preceding

quarter ended 31 March 2024. The higher revenue is in line with improved demand from our key

customers.

The Group recorded a net profit of RM9.9 million for the reporting quarter, compared to net

profit of RM5.3 million recorded in the immediate preceding quarter ended 31 March 2024. As

mentioned in B1 above, the company continued to improve its revenue, cost structure and enjoy

economies of scale for some of the products.

The reported quarter total HDD storage market showed a 2% increase Quarter on Quarter (QoQ)

in units shipped and 11% QoQ total Storage Capacity shipped, increasing to 290 Exabytes (EB).

This is the 3rd straight quarter that the industry is seeing unit HDD shipment increase

Read again

The reported quarter total HDD storage market showed a 2% increase Quarter on Quarter (QoQ)

in units shipped and 11% QoQ total Storage Capacity shipped

Total Storage increased by only 2%

BUT UNITS SHIPPED IS 11% IN STORAGE CAPACITY

SO EFFORT INPUT 2% AND OUTPUT IS 11%

UP A 550% MULTIPLE!

JCY HAS LOW COST LABOUR BUT ITS PROFIT MARGIN NOW GOING HIGH 

AN EXCELLENT VIRTUOUS CYCLE OF GROWTH

Calvin further comments,

Now as we Know we are just 2 Years into Covid 19 Recovery from 2022 to 2024

Many DATA CENTERS ARE MUSHROOMING ALL OVER THE WORLD

IT TAKES 2 TO 3 YEARS TO SEE ALL NEW DATA CENTERS COME ON STREAM

AS SUCH THE "FUTURE ORDERS" FOR HDD & SSD ARE YET TO COME IN

NOW SALES STILL IN TRICKLE

LATER WILL BE IN TORRENTS

So We Will Hold JCY & DUFU & Anymore Sell Down on Notion we will buy and average down slowly

Our First Buy Calls

JCY 32 sen

DUFU Rm2.20

NOTION 52.5 sen

Notion still up by a Big Margin While DUFU is the Laggard

Therefore we will add DUFU on Weakness as Well as JCY

And if Notion comes back down then we will slowly add

Please do not simply punt or play contra

Buy only if you can pick up & hold longer term

With Kind Regards to All

Calvin Tan

Please buy/sell after doing your own due Diligence or Consult your Remisier/Fund Manager