A5. UNUSUAL ITEMS AFFECTING THE ASSETS, LIABILITIES, EQUITY, NET INCOME OR CASHFLOW
During the quarter ended 30 September 2020, the Group conducted an impairment assessment by comparing the net carrying value of the properties, plants and equipment and land use rights of the Group with the expected discounted future cash flow generated by the the assets. As a result, the Group recognised a reversal of impairment of RM34.6 million.
Reversal of impairment is an non cash event. It may seen as if the QR not so good without the reversal. But hey, reversal means the assets will generate positive value.. buy into the future right?
I only believe in volume and fund flows. result good or bad, I have confirmed the big boys have been accumulating the tickets and the momentum is aggresive. don't seem like a passive one.
Hmm... the results doesnt look good. Impairment writeback aside, the operations looks dismal. The initial Kenanga report clearly was overly bullish. Also with or without the Forex adjustment, this quarter is an operating LOSS. No wonder the ESOS and other Insiders kept selling during this period.
KUALA LUMPUR: hard disc drive (HDD) components maker JCY International Bhd turned a profit in the last quarter ended Sept 30 on higher shipment volume and a reversal of certain impairments.
Net profit for the quarter stood at RM14.1mil that lifted its full year earnings to RM25.6mil.
Revenue was up at RM301mil.
"The higher revenue in the reporting quarter compared to previous year corresponding period was due mainly to higher shipment quantity," the company said.
"The Group also recorded a slightly higher revenue for the reporting financial year compared to previous financial year due to better products mix, despite having an isolated significant impact of shipment reduction in 3rd financial quarter due to the global pandemic of COVID-19," it added.
JCY, in its outlook for FY2, said the HDD market is expected to remain relatively stable even if large cloud operators may not be embarking on major capacity expansion due to uncertainties in business demand.
"With the expected gradual reduction in global TAM to below 70 million per quarter in the near future, major HDD producers may possibly embark upon a rationalisation of their supply chain, which in turn will affect HDD component suppliers," it said.
"JCY will deploy its resources to accommodate likely changes in the market," it added.
I already mentioned JCY CEO said hard time is over previously, it mean JCY will have good qtr result which was announced yesterday. I am going to earn alot today.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
rocky_88
1,034 posts
Posted by rocky_88 > 2020-11-26 17:19 | Report Abuse
gd TA wait for QR