CIMB Research ups JCY target price to RM1.54
Date:
2012-01-05
Firm:
CIMB
Stock:
Price Target:
1.54
Price Call:
TRADING BUY
Last Price:
0.705
Upside/Downside:
+0.835 (118.44%)
KUALA LUMPUR (Jan 5): CIMB Research has raised its target price for JCY International Bhd to RM1.54 and has a trading buy on the hard disk drive maker.
It said on Thursday that JCY issued a positive profit guidance for the December quarter that was even better than its already-above-consensus estimate.
'We believe that the positive earnings momentum will continue for at least the next two to three quarters and should catalyse a rerating of the stock.
'The favourable impact of a higher ASP, better product mix and stronger US$ prompts us to revise our above-industry forecasts again for FY12-14. This raises our target price to RM1.54, still based on 6.0 times CY13 P/E. Maintain Trading Buy,' it said.
It said on Thursday that JCY issued a positive profit guidance for the December quarter that was even better than its already-above-consensus estimate.
'We believe that the positive earnings momentum will continue for at least the next two to three quarters and should catalyse a rerating of the stock.
'The favourable impact of a higher ASP, better product mix and stronger US$ prompts us to revise our above-industry forecasts again for FY12-14. This raises our target price to RM1.54, still based on 6.0 times CY13 P/E. Maintain Trading Buy,' it said.
Discussions
2 people like this. Showing 31 of 31 comments
The Card is openned so everyone go and buy....beware of ular as mentioned in the news media, OSK and CIMB of the good profits and TP.
2012-01-06 01:01
Oh..TP RM1.54 but alot of fishy things going on and why 75% of the profit goes to CEPEX. Investment of Fixed Assets(Machineries) and mark up invoices and siphon off the $$$$. Why they continue to invest in Capital Expd and isn't the present fixed assets generates a high profits. Time to distribute the portion of the profits to shareholders ler. This is logic...rewards the shareholders and warrant holders.
Anyone bother to read about FASIMILES....the so called cargos airways ...at one time more the RM10++ now is a worthless company. Investors get burned and go to HOLLAND.
2012-01-07 02:34
IT company not good for long term la....just hit and run....easy make money one...
2012-01-07 03:03
ADAM, its easy on word, its hard on action XD...
Stephen Lee, indeed, there are something fishy going on with JCY, that is my opinion, i cant say 100%... but the TP price as predicted by researcher, 1.54 is possible in this case
2012-01-07 09:53
No doubt the IPO price was RM1.60 and it fell down to less than 30 sen and last year with a net loss of RM2.6+ millions and now 7000% profit gain due to appreciation of US$ and profit of HDD. HDD issue is just a temporary issue when most of the HD Co recover from the flood in Bangkok Ayuthia Area. Henceforth, China factories are lossing money and there will be fierce competitions with China's HD player. JCY price range below RM1.54 is a fair play but there are other counters where we can go for a better play.
2012-01-07 17:15
JCY [5161] - Considered here as the most favorable counter as they are the least affected by the flood, which had enabled them to gain a steep advantage over their opponent, ENG, not a x2 or x3 advantage, but might hit up to x4 or above since ENG need to come back from the destruction, which is hampering their production. With the latest action taken by JCY to approve the 300 million capital expenditure to bulk up further, I would see it as a critical wise decision into taking advantage of the whole market, and a step to penetrate deeper in the market. Consider JCY approving 300 million capital expenditure to meet the demand, I would personally think that this might not be a 1 year affair after all.
Bone's TP: RM1.40
2012-01-09 00:58
Keith:Why too many considers? Aiya..it may bring you to HOLLAND as there are so many beautiful and virgin counters to play with. Go and read GANASI comments about JCY please.
2012-01-09 11:24
I believe it will be another round. start collecting slowly when it is low (near RM1.00). Trade at your own risk!
2012-01-09 12:29
Today beautiful & virgin counter play of CAN-ONE, KHSB & KPS.....can made more money but buy on your own risk ler.
2012-01-09 22:40
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starwood
tp rm 1.60-1.80.
2012-01-05 21:54