Stock Name: JCY
Company Name: JCY INTERNATIONAL BERHAD
JCY International Bhd's move to allocate RM300 million in capital expenditure (capex) to expand its facilities in
Malaysia, Thailand and China is positive in the long term, said OSK Research Sdn Bhd.
In a research note today, OSK said the move indicated the management's commitment and conviction to strengthen its position as a components maker.
"Nonetheless, we see the allocation as a fluid target in view of prevailing market conditions," it said.
It said JCY, which recently posted a strong first-quarter net profit of RM150 million, a 100 per cent increase year-on-year, emerged from the Thai floods relatively unscathed.
"The floods and the subsequent component shortfall have taken a toll on most of its competitors," it said. OSK said it would maintain a 'trading buy' on the stock with a higher fair
value of RM1.48, from RM1.30 previously. -- Bernama
Company Name: JCY INTERNATIONAL BERHAD
| Research House: OSK | Price Call: BUY | Target Price: 1.48 |
JCY International Bhd's move to allocate RM300 million in capital expenditure (capex) to expand its facilities in
Malaysia, Thailand and China is positive in the long term, said OSK Research Sdn Bhd.
In a research note today, OSK said the move indicated the management's commitment and conviction to strengthen its position as a components maker.
"Nonetheless, we see the allocation as a fluid target in view of prevailing market conditions," it said.
It said JCY, which recently posted a strong first-quarter net profit of RM150 million, a 100 per cent increase year-on-year, emerged from the Thai floods relatively unscathed.
"The floods and the subsequent component shortfall have taken a toll on most of its competitors," it said. OSK said it would maintain a 'trading buy' on the stock with a higher fair
value of RM1.48, from RM1.30 previously. -- Bernama
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