Posted by Tesla > 2021-01-20 09:49 | Report Abuse

Net profit in FY21E is expected to grow 3x to RM150.8m as the group takes on higher loading volume in 2H 2020 and into 2021.

Trading Buy with a FV of RM1.35 based on 18.7x FY21E PER, in line with its 3-year mean. The recent surge in web computing is just the beginning of a long-term secular demand for mass capacity storage with TAM estimated to rise from the current market size of US$12.5bil to US$24bil in 2025. We like JCY for being: (i) a close proxy to the massive upcycle in the HDD market due to data centre expansion (ii) able to enjoy higher order volume and ASP owing to supply chain consolidation and (iii) proactive in diversifying revenue stream by venturing into the automotive market.

Good news coming in this Q12021!