KUALA LUMPUR (Jan 5): JCY International Bhd shares were actively traded on Thursday after the company said it was likely to record a surge in earnings for the quarter ended Dec 31, 2011.
At 9.30am, JCY gained four sen to RM1.22 with 12.6 million shares done.
JCY said on Wednesday said that to cater for the increase in the component demands from the company’s major customers, it had allocated RM300 million over the next 24 months period to expand its facilities in Malaysia, Thailand and China.
CIMB Research in a note Thursday said JCY’s profit guidance for the December quarter was even better than our already-above-consensus estimate.
The research house JCY’s positive earnings momentum would continue for at least the next 2-3 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 6x CY13 P/E. Maintain Trading Buy,” it said.
At 9.30am, JCY gained four sen to RM1.22 with 12.6 million shares done.
JCY said on Wednesday said that to cater for the increase in the component demands from the company’s major customers, it had allocated RM300 million over the next 24 months period to expand its facilities in Malaysia, Thailand and China.
CIMB Research in a note Thursday said JCY’s profit guidance for the December quarter was even better than our already-above-consensus estimate.
The research house JCY’s positive earnings momentum would continue for at least the next 2-3 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 6x CY13 P/E. Maintain Trading Buy,” it said.
