JCY

JCY's 2 main customers are Western Digital (WDC) and Seagate Technology (STX) and both WDC STX share prices surged almost 100% due to the revenue and profit of this 2 giants have improved significantly for the past 2 quarters.

We are still in the early stage of the HDD bull run.

JCY's last Q report has given the guidance ahead:

(1)Company from loss became profit even with only 50% utilized on their operation, imagine if the demand of HDD and SSD spike due to Data Center and AI injected by Microsoft, Nvidia, Google, Amazon etc of RM56 Billion, and JCY ramp up their production to 90% to 95%, the revenue and PAT will increase 300-400%.

(2)Seagate and Western Digital both already give the indication that HDD and SSD prices will go up by 10%.

(3)Many Data Centers are still in the early stage for setting up and definitely will use a lot of HDD and SSD.

(4)JCY boss already mentioned that the 2H2024 result will be better than 1H2024 in their last Q report.

The IPO of JCY in 2010 was RM1.60 with market cap RM3 billion and the 2024 HDD/SSD bull run will definitely bring back the glory days of JCY, I will wait for TP RM2.50.