Potential from gaming consoles. In addition, we also expect HDD demand
from the gaming segment to increase on the back of new gaming consoles such
as Microsoft‟s „Xbox One‟ and Sony‟s „PlayStation 4‟ that were released at the
end of 2013. According to the latest data from the market research firm, NPD
Group, hardware sales in Feb grew by 42% yoy from US$244m in Feb 13 to
US$347m in Feb 14, which indicates that the demand for these consoles is still
strong. Gartner forecasts global video game console sales to grow from
US$44bn in 2013 to US$55bn in 2015, which is at a two-year CAGR of 11%.

Big data and cloud computing are driving storage demand. Gartner
defines “big data‟‟ as high volume, high velocity and high variety information
assets that demand cost-effective, innovative forms of information processing
for enhanced insight and decision making. The big data phenomenon has
enabled organisations to perform analyses with higher accuracy for a better
decision making process. The industry research group, International Data Corp
(IDC), forecast the big data market to grow by 30% in 2014, exceeding the
US$14bn mark as demand for big data analytics skills continue to outstrip
supply. Cloud computing is a prime beneficiary of the surge in demand for big
data given that the agile nature, flexibility and highly scalable storage make it
an appealing solution for big data.
According to Cisco, the global cloud traffic volume is expected to increase by
more than 3x in 2017, driven by consumer traffic which is projected to grow at a
2012-17 CAGR of 36% to 4,300 exabyte (EB) from 1,400 EB currently (1
exabyte is equivalent to 1bn gigabytes). The strong growth will be coming from
applications such as video and audio streaming that are strong contributors to
cloud traffic growth. Moreover, the proliferation of mobile devices such as
smartphones and tablets, which have been traditionally constrained by limited
storage space, has created a huge demand for personal remote storage such as
iCloud, Dropbox, SkyDrive and Google Drive. Cisco forecasts personal cloud
traffic to increase from 1.7 EB in 2012 to 20 EB in 2017. Overall, we expect the
robust growth in cloud storage to continue to spur further demand for HDD.

2. OUTLOOK
2.1 Recovery in industry demand
We believe that JCY stands to benefit from a recovery in HDD industry demand
on the back of enterprise storage growth from “big data” and cloud computing,
pent-up demand from gaming consoles and potential exposure to the tablet
segment from ultrathin drives.
Gartner expects global HDD shipments to grow at a modest five-year CAGR of
2.9% from 552m units in 2013 to 635m units in 2018, driven by the increasing
demand for digital data storage despite the sluggish demand for PCs.
 The positive growth is expected to come from robust enterprise storage
demand which is forecast to grow at a 2013-18 CAGR of 25%.
 However, the slowdown in the PC segment is likely to persist with a
decline of 7% in CAGR during the period.
 Nonetheless, the demand for storage will continue to drive industry
growth as Gartner estimates that the average capacity for disk drives
will increase from approximately 2.1TBs in 2013 to 2.69TBs in 2014
(+28% yoy).
Meanwhile, Coughlin Associates, a storage industry consultant group, is also
expecting the decline in HDD shipments to ease and could potentially reverse
as early as 2014. The group expects HDD shipment volumes to grow by a higher
2013-18 CAGR of 5.6% on the back of rising demand from cloud storage and
consumer electronics.

component manufacturers which have enjoyed 237% share price growth over
the same period.
YTD, Nidec continues to lead with 15% growth, followed by JCY with 13%. In
the meantime, there are mixed performances between the HDD OEMs; WD was
up by 7% while Seagate fell by 2%.

1.3 Share price remains a laggard
JCY‟s share price was up by 15% since Jan 12, but it is still significantly lower
relative to its customers which have been enjoying tremendous share price
growth in the last 15 months. WD and Seagate, which are estimated to control
about 80-85% of the global HDD market, have been growing at a whopping
211% and 181%, respectively. Meanwhile, Nidec, which is the world‟s largest
HDD motor base assembly manufacturer, is the best performer among HDD

1.2 Earnings are improving
Following the improvement in industry demand, we saw JCY‟s earnings
gradually improved in the last quarter. 1QFY14 sales grew by 27% yoy to
RM477m from RM377m in 1QFY13, driven by a combination of higher
shipment volumes, higher ASP and favourable exchange rates. EBITDA margin
improved significantly to 13.9% in 1QFY14 vs. a 1.7% declined in 1QFY13 due to
better sales and improving operational efficiencies. As a result of its high
operating leverage, JCY recorded a significantly higher core net profit of
RM38.9m in 1QFY14 vs. a RM32.7m core net loss in 1QFY13. The company
declared an interim dividend of 1 sen during the quarter. We expect JCY‟s
earnings to rebound strongly on the back of the improving industry demand,
weakening competitive environment and better operational efficiency.

JCY suffered a slump in earnings between Sep 12 to Sep 13 due to the weakness
in HDD demand following the shift in consumer preference towards mobile
devices such as smartphones and tablets, which led to a decline in PC shipment
volumes. According to the industry research group, Trendfocus, global HDD
shipments in 2013 fell by about 4.4% yoy from 577m units in 2012 to 552m
units in 2013. Meanwhile, Gartner reported that global PC (desktop and
notebook) shipments fell by 12.3% yoy from 341m units in 2012 to 299m units
in 2013.
However, it is interesting to highlight that the overall decline in the HDD
market was relatively smaller compared to the decline in PC shipments. We
believe that this was due to the increasing demand from the enterprise and
mobile HDD segments which helped to cushion the softness in PC demand. We
expect the trend to persist as the demand from the enterprise segment will
drive HDD shipments as PC remains a drag.
Furthermore, we expect the weakness in HDD shipments to bottom out given
the improving demand in 2H13. Global HDD shipments in 4Q13 actually grew
by 4.7% yoy and 1.4% qoq. The better-than-expected growth was due to higher
shipment volumes from the mobile segment which grew from 67m to 72m
(+7.5% yoy) and the enterprise segment which grew from 14m to 17m (+21%
yoy). Moreover, the preliminary data from Trendfocus also showed that HDD
shipments in 1Q14 were hovering around 136m units, which was relatively flat
yoy.

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of ultrathin drives in the storage
industry.
Consolidation to aid margin
expansion
We expect that there could be a
round of consolidation among the
HDD component manufacturers to
grow the industry‟s profitability
given that some of its peers are still
struggling to recover from the
devastating floods in Thailand.
Considering its strong balance sheet,
prudent cash management and years
of experience, we expect it to take
advantage of potential M&A activity
to increase its allocation from WD
and Seagate and grow its margin
from better economies of scale.
Time to take another look
We think that JCY is already showing
signs of a recovery given the strong
earnings performance in 1QFY14.
Moreover, we do not see SSD as a
structural threat to HDD given the
shift in consumer demand towards
mobile and cloud computing. Hence,
we think that JCY‟s prospects of a
recovery could not be better.

Expecting a strong comeback

JCY is showing signs of a recovery following the strong earnings
recorded in 1QFY14 on the back of higher sales and better operational
efficiencies. We expect stronger HDD demand growth from the
enterprise segment, a weaker competitive environment and a potential
entry into the tablet market to drive JCY’s earnings recovery.

We expect its valuation to remain
attractive due to a strong earnings
recovery over the next two years. In
our estimation, JCY currently trades
at 8.7x CY15 P/E, which is a 30%
discount to its peers and a 23%
discount to HDD manufacturers and
OEMs. Applying a blended multiple
method, we get a valuation range of
RM0.99 to RM1.07 which indicates a
decent 31-42% upside. Our stance on
the stock is mainly trading-oriented.
A proxy to big data and
cloud computing growth
Most industry research groups
expect HDD demand to grow by a
modest 2.9-5.6% CAGR over 2013-18,
driven by strong growth from the
enterprise segment with an emphasis
on big data and cloud storage. We
see strong growth from the
enterprise segment providing an
attractive opportunity for JCY to
grow its exposure in cloud storage
and move away from the declining
PC market. We also think that JCY
may finally have exposure in the
tablet market given the development -------continue

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EG Industries (EG MK)
Technical BUY with +17.2% potential return
Last price : RM0.495
Target Price : RM0.545, RM0.580
Support : RM0.460
Stop-loss: RM0.455
BUY with a target price of RM0.580 with a stop
loss below RM0455. Following a retracement
from the recent high of RM0.485, EG’s share
price has rebounded to RM0.400 before
gradually recovering along a steeper trendline.
The recent selling pressure was absorbed
within the “cloud” during 24 Mar-8 Apr 14 as
EG accelerated the recovery by surging past
the immediate resistance of RM0.485 last
Friday accompanied by above 20-day average
trading volume which suggests a genuine
breakout. Given the uptick in RSI and a
positive development in MACD, we expect the
up-leg to continue as EG is already trading
above the rising trendline. Thus, we peg our
upside target at the 1.61x Fibonacci extension
level of RM0.580 over the medium term.

pang72--------what good news out today??

Crest Builder Holdings
(CBH MK)
Technical BUY with +17.9% potential return
Last price : RM1.56
Target Price: RM1.74, RM1.84
Support : RM1.49
Stop-loss: RM1.47
BUY with a target price of RM1.84 with stop
loss placed below RM1.47. Following a second
failed attempt to surpass RM1.59 on 25 Feb
14, CBH has been consolidating downward
ever since but remains steady above the
immediate support of RM1.49. However, last
Friday’s breakout above the “cloud” on a
higher trading volume of 1.5m shares (vs 20-
day average of 0.25m) signals the end of the
current consolidation as the share price is
ready to resume its uptrend. A bullish
crossover in MACD and Stochastic suggests a
surge in momentum, thus CBH is likely to test
the immediate resistance of RM1.59 soon. A
positive closing above the aforementioned
level should trigger fresh buying interest which
could catapult CBH toward our projected target
at the 1.61x Fibonacci extension level in the
medium term.

jolie2---are you holding supermax?

THE ABOVE FIRST REPORT IS FROM KENANGA,,THE SECOND IS CIMB,,,thanks

Sit tight for another round of
re-rating

THE ABOVE IS CIMB REPORT dated 14//04//14

 Coverage includes (1) bodily injuries of the third party, (2) damages to
third party’s property, (3) fire on the insured vehicle, and (4) damages
to the insured vehicle during an accident
Policy Type 3
 Only covers third parties, including the loss of life, bodily injuries as
well as damages to the property of the third party.
Policy Type 3 + 3 Plus
 Coverage includes the loss of life and bodily injuries for a third party,
damages to the property of a third party as well as damages to the
insured vehicles during an accident
 Marine and transportation (cargo)
 Coverage for loss or damage of goods while in transit, through the
means of ships, airlines, cars and trains or by mail.
 Personal accident (PA) – provides 24-hour coverage everywhere around
the world, whether the policyholders are at work, at home and travelling.
 Cancer insurance
 Insurance risks
 Legal liability insurance
 Insurance for SMEs

The new products for TIM include snatch-theft insurance, employer-liability
insurance and cheaper-cost life insurance (for its tie-up with a life insurance
company).

Lifting earnings forecasts and target price
We are raising our EPS forecasts by 1.6% for FY14 and about 4% for FY15-16 to
factor in the two corporate exercises, as follows:
 Factoring in the tie-up with Cozmo increases our net profit forecasts by
1-2.4%, based on the assumptions of a rise of 5-11% for gross premium and
10-20% for the travel insurance business's operating costs.
 As we factor in the proposed acquisition of Osotspa in Thailand, our net
profit forecast for FY14 increases by 0.7% and that for FY15-16 rises 1.6%.
This is based on the assumptions of (1) 15% of its travel insurance
premium generated in Thailand, (2) a 70:30 sharing of the premium in
Thailand for Tune Ins and its partner, (3) 50% net profit margin, and (4)
Tune Ins acquiring a 49% stake in Osotspa.
The higher EPS forecasts also cause our target price to increase from RM2.55 to
RM2.71.

APPENDIX
Information on Osotspa Insurance
 Fire – perils of fire, lightning, earthquake, explosion hazards due to
water-based vehicles and aircraft disasters (not including flood)
 Expanded coverage – temporary housing
 Addition of coverage for natural disasters – flood, hurricane,
windstorm and hail – with a combined liability of THB100,000
 Addition of coverage for flood, hurricane and tsunami, with a combined
liability of not more than THB100,000
 Compulsory motor insurance – Victims Insurance Protection Act of 2535
requires all types of automotive vehicles registered with the Department of
Transport to be insured for deaths and physical injuries of the
drivers/passengers. The insurance also has third-party coverage.
 Medical expenses not exceeding THB50,000 per person, in case of
injuries
 An amount of THB200,000 per person for death and permanent
disability
 The total claims shall not exceed THB204,000 per person
 Voluntary motor insurance
Insurance Type 1 (most comprehensive coverage)
 Own and third-party vehicles or property coverage
 Coverage of losses from fire on the motor vehicles
 Addition premium for riders to cover insurance for personal accidents,
medical costs and bail expenses in criminal cases
Policy Type 2 (Class 2)
 Coverage includes (1) bodily injuries of the passengers and third party,
(2) damages to third party’s property, and (3) fire on the insured
vehicle
Policy Type 2 + 2 Plus

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Benefits of the tie-up
The JV will benefit Tune Ins in the following manner:
 A new stream of revenue
 Diversifying away from AirAsia
 A maiden venture into Middle Eastern markets
The contributions from this JV may be small compared to those from AirAsia as
(1) AirAsia is one of the leading low-cost carriers in Asia, (2) Tune Ins only
owns 49% of the JV company, and (3) the commission rate in Middle East is
higher at 50-70% compared to 25-30% in other countries. However, the JV
should be earnings-enhancing due to the low start-up costs relative to the
revenue.

New catalyst No. 2
Planting the flag in Thailand
On 4 Apr 14, the Office of Insurance Commission Thailand gave the approval
for Tune Ins to hold up to 49% in Osotspa Insurance Public Company Limited
(OI). We understand from management that all parties will sign the agreement
for the deal within 1-2 weeks, with Tune Ins acquiring a 49% stake in OI. Its
another partner will acquire 25% of OI, with the 26% interest remaining in the
hands of the existing shareholders. The 49% stake will cost Tune Ins about
US$10m.

New catalyst No. 1
Entry into Middle East
On 20 Jan 14, Tune Ins entered into a joint venture agreement with Cozmo
Travel LLC (CT) to distribute travel insurance products. Subsequently, the JV
company was registered with the Department of Economic Development of
Dubai on 12 Mar 14. Tune Ins has a 49% stake in the company with the
remaining 51% held by Cozmo. As stated in an article that appeared in The
Edge over the weekend, the above JV will also give Tune Ins access to air
travellers not only in the Middle East but also Europe and even North Africa.
We understand that the key top management staff of the travel insurance unit
has been working closely with Cozmo to prepare for the commencement of the
JV in 2H14. As the booking of tickets in Dubai will still be done mainly through
agents, Tune Ins’s strategy in the Middle East is somewhat different as it will
focus on developing a system that could be placed in the agents’ offices for them
to purchase travel insurance for clients.
The above comes as a “bonus” for the company as it did not plan for the JV
when it launched its IPO last year. Tune Ins was referred to Cozmo by one of its
shareholders who likes the former's business model and capabilities in the
travel insurance business.
About Cozmo
The company was launched in Jan 10, offering customised travel solutions to
both independent and corporate travellers. Its services include travel planning,
ticketing services, hotel bookings, visa processing as well as organising
activities such as excursions and safaris.
Cozmo Travel kicked off its operations as a full-fledged IATA-certified
(International Air Transportation Association) travel agency on 26 May 10 in
Sharjah. It has a total of 12 branches operating out of the UAE. The company
also has outlets in Doha and Riyadh. Its operations have expanded to other
countries, including Saudi Arabia, Kuwait and Bahrain.

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pang72---no never heard about sarawak energy,,what so special about it??

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CIMB REPORT ON GLOVE SECTOR

No hand-wringing over gas price
hike
While we think that competition is intensifying, we believe that the
glovemakers can pass through to customers the 20% hike in natural
gas price announced last Friday. Hence, we maintain our earnings
forecasts and Neutral rating on the sector. Kossan remains our top
pick given its strong earnings growth and more attractive valuation.

continue----

FUNNY HA no wonder in the past few weeks CMSB price was going down slowly, so some big fishes were selling,,knowing the gas price hike was coming.. even RHB also did not take out any report to mention this...so we ikan kechil all got trap... CIMB is saying it won t affect cement players but affect to steel players only... so what RHB has to say in their LATE report tomorrow?? so just wait ha

GAS PRICE TODAY also affecting gloves sector

NO WONDER CMSB PRICE WAS GOING DOWN.. IT IS A CEMENT PLAYER..

CONTINUE-----manufacturing facilities could enhance pricing power but may be futile in the
current competitive environment, which is further exacerbated by cost risks.

SO MY QUESTION TO ALL CMSB FORUMERS HERE,,WILL THE GAS PRICE HIKE AFFECT CMSB BUSINESS??? CIMB IS SAYING NO.... IS CMSB A CEMENT PLAYER, I THINK YES... NO WONDER THE PRICE WAS DROPPING DOWN

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Gas price hike & M&A spillover -----CIMB REPORT TODAY


The latest sector developments appear more negative for the steel
companies than the cement ones. The 18-26% gas price hike is likely to
be neutral for the cement players but will be negative for the larger
steel mills. Ann Joo, the only steel stock under our coverage, faces
minimal cost and EPS risk from the higher gas price as it makes up less
than 1% of billet production cost, based on our estimates. Separately,
the M&As by Lafarge’s and Holcim’s parent companies may have
positive implications for domestic cement manufacturing strength and
efficiency but it does not change the competitive landscape. Maintain
Neutral on the sector and Hold on Lafarge and Ann Joo. ------continue

i think CIMB should jack up the target price for karex,,because RHB already given far forward already

RHB RESEARCH GIVEN 5.11,,,CIMB GIVEN 3.38,,,,CA today are issued by cimb,,judge youself if the mother can go more from today closing price??

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http://klse.i3investor.com/servlets/ptres/22369.jsp



Downgrade on limited upside for now. Since we initiated coverage in mid-Nov 2013, Datasonic’s share price has surged >200% from a low of MYR1.29 (ex-bonus). Given the limited upside to our current FV of MYR4.08, which is based on a 25.0x CY15 P/E, we are taking the opportunity to downgrade our call to NEUTRAL. Still, we do not discount the possibility of revisiting our forecasts should m anagement secure new initiatives outside the existing MyKad and passport space. In particular, we are looking forward to more developments on the electronic medical and health record systems front, as well as the intelligent transport information system that the group is currently developing.--- TAKEN FROM ABOVE RHB LINK


PLEASE READ THE RHB CONTENTS IN THE ABOVE LINK..FROM HERE WE CAN UNDERSTAND THAT RHB HAD PUT A NEUTRAL RATING ON THE STOCK TO COOL OFF OVER SPECULATION ON THIS STOCK.. SO NOW IT IS A TIME WAITING FACTOR ON THIS STOCK.. MYCARD AND PASSPORT NEWS IS ALREADY PRICED IN IF NOT MISTAKEN...NOW IN ORDER TO BE RERATED AGAIN ABOVE NEUTRAL,,,RHB IS WAITING FOR SOME OTHER NEWS FROM THIS COUNTER.. PLEASE READ ABOVE.. SO I THINK THIS NEWS HAS A WAITING TIME IN IT, SO IN THE MEAN TIME THE STOCK WILL CONSOLIDATE...FOR TIME BEING IT IS BETTER FOR THIS STOCK TO TRADE BELOW 4.08... 3.50 TO 4,, IS A NICE RANGE...IF IT GO BELOW 3.50 WOW A BUYING OPPORTUNITY LOL

2767max ----ok fren looks like you have confident....it s good sign...any date given so far for the bonus,,share split for this CMSB counter?? usually if a counter has a bonus issue, it will move upwards.. but maybe mega sales ha

so this is a riddle,, so which stock it can be ??

PLEASE CAN SOMEBODY PLEASE EXPLAIN TO ME,,IS THIS CORRECTION ON THIS COUNTER, OR GOING DOWN DUE TO SOME BAD NEWS???? IF BAD NEWS PLEASE GIVE ME THE LINKS..PLEASE ANY EXPERT ON CMSB HERE??? THANKS

DEAR MEMBERS I BOUGHT 1,700 UNITS OF KAREX MOTHER SHARE AT 3.18 FEW WEEKS AGO...SO NOW WHAT DO I GET??? IS IT CA OR WARRANTS??? IS IT FREE OR I HAVE TO PAY?? CAN SOMEBODY EXPERTS ON CA AND WARRANTS PLSE EXPLAIN TO ME ??? THANK YOU VERY MUCH

http://www.smh.com.au/business/markets/wall-street-crash-even-worse-than-1987-is-coming-says-marc-faber-20140411-36gok.html

http://www.smh.com.au/business/markets/wall-street-crash-even-worse-than-1987-is-coming-says-marc-faber-20140411-36gok.html

http://www.smh.com.au/business/markets/wall-street-crash-even-worse-than-1987-is-coming-says-marc-faber-20140411-36gok.html

http://finance.yahoo.com/blogs/talking-numbers/the-correction-is-on--here-s-how-bad-it-s-going-to-get-212313355.html

http://finance.yahoo.com/blogs/talking-numbers/the-correction-is-on--here-s-how-bad-it-s-going-to-get-212313355.html

http://finance.yahoo.com/blogs/talking-numbers/the-correction-is-on--here-s-how-bad-it-s-going-to-get-212313355.html