JCY International Berhad: Fiscal 2FQ24 Financial Results

in Malaysian Ringgits (RM) thousand	2Q23	2Q24	6 mo. 23	6 mo. 24
Revenue	104,618	147,146	215,861	273,858
*Growth*		41%		*27%*
Net income (loss)	(25,917)	5,346	(57,354)	3,185

JCY International Berhad, incorporated in Malaysia, published its financial results for fiscal quarter ended March 31, 2024.

The group’s activities are predominantly in the sector of trading, manufacturing and assembling of HDD components for Seagate, WD and Toshiba like cover, baseplate, actuator arm body, actuator pivot flex circuit assembly, etc, and also enclosure for SSD.

The geographical segments are based on the location of assets in, Malaysia, Thailand and others (mainly China and Singapore but which individually fall below the 10% threshold of a reportable segment).

The group recorded a revenue of RM147.1 million for 2FQ24, this represents an increment of 40.7% to 1FQ24. It recorded a net profit of RM5.3 million for 2FQ24, compared to net loss of RM25.3 million recorded in 1FQ24.

The improvement in results is driven by 2 main factors:
a) Revenue increasing driven by increasing demand for storage products, both HDD and SSD. Customers have started seeing some recovery in HDD demand and that is translating to more demand for the groups offerings. The firm is seeing this sustained increasing factory capacity utilisation throughout the whole quarter.
b) An improved group cost structure allowing to turn to profitability even at a much lower factory capacity utilization rate. It is a result of a continuous effort to drive factory yields and productivity. This process is evident as the company has reduced its gross loss consecutively Q/Q for the last 4 quarters.

Future prospect
The reported quarter total HDD storage market showed a 3% increase Q/Q in units shipped and 22% Q/Q total storage capacity shipped, increasing to 262EB. This is the 2nd straight quarter that the industry is seeing unit HDD shipment increase. The industry has also reported that inventory levels in the supply chain are back to normal levels. Based on current market trends and barring any unforeseen circumstances, the group expects the performance of 2FH24 to be better than 1FH24. The group is projecting that its factory capacity utilisation rate will increase as its customers improve their units shipped.