JCY stated that it is likely to record a surge in earnings for the quarter ended Dec 31, 2011. Based on current available information, the group was likely to record an increase in net profit for the financial quarter ended Dec 31, 2011 of approximately 1900% compared with a year ago when profit was rm7.5 million.
For the quarter ended Dec 31, 2011, it expected net profit to be an increase of 460% compared with the quarter ended Sept 30, 2011’s net profit of rm26.4 million.
It cited the surge in earnings to an increase in selling prices caused by component shortages arising from the Oct 2011 floods in Thailand , effecting product mix, appreciating US dollar against the ringgit and continuous efficient cost management.
To cater for the increase in the component demands from the company’s major customers, the board of directors has approved a capex budget of approximately rm300 million over the next 24 months period, for expansion of its facilities in Malaysia , Thailand and China .
It also said barring any unforeseen factors, the company expects to be able to increase its global market share of HDD mechanical component industry over the next 24 months.
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