Coming result will not be good due to a lot of cancelled orders from WD and seagate. The share price of both these company have fallen by more then 50% in last 6 months. Be careful Jcy share price will fall further after result announce next week.

careful, WD orders drop alot lately due to weak global HDD demand. earnings will be hit hard.

Obvious it will be approved. Company provide employment for about 15k workers in malaysia. Do you think malaysia govt will not approve? Company have factories in thailand and china as well. Why should they keep producing in malaysia if got no benefit or incentive to stay. Malaysia govt want to encourage private investment in econony not discourage it.

The next quarter profit will be more then this quarter with 4.5 sen dividend!! They are talking to a ssd component maker to buyout!

After results announced, even rm1+ will look cheap.

3+ sen dividend with big profit for this Q. Will gap up after result announcement!

Yes. at current prices, there is very good profit to be made on the share price. I cannot explain any better then bankertan analysis.

If coming Q4 profit not 100m, you can hold me responsible.

Unbelievable. each time earnings start to drop, some unexpected event/s will occur to make the earnings sky rocket. Last time got thai flood, then this year weakening ringgit/strong USD
and now China/WD deal. Honest's claim is confirmed. The coming quarter result will increase by a staggering 200%+ from last quarter to over 100m profit with 2.5 sen
dividend. Flood time earnings replaying again. Lets see if share price will cross RM1 again.

Stay away from this counter for at least the next 3 quarters. Earnings will continue to slide into losses. Price will be in the rm .40 range in next few months.

Insider contact. Also md tan shi leng is disposing soon as well. He let his fellow md Peter lim dispose all first before he unload his 7m shares. the next 3 quarters earnings will be very bad that is why all the directors disposing. Anyone still holding after result is announce be prepared to lose alot.

Last warning. Sell before the result announce in 2 weeks or you will regret. Profit a lot less then last quarter and price will fall sharply after announced.

I already warn coming earnings will not be good. Price heading back to .50 range.

dear all, coming quarter earnings dropped. directors preparing to sell. throw before the heavy selling start.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4806029

Becareful the MA rumour is untrue. Do not be burn by the banks.

Next few quarter earnings will be bad. Be careful and protect capital first.

profit will drop a lot next quarter then losses for a few quarters. Funds selling back to market now. price starting long downtrend now. Advice stay away from this counter.

Result will only be slightly better. No catalysts to sustain price up. Earnings will start falling from following quarter as sales unsustainable. Be careful.

dont be greedy. Heavy fund selling is coming. Sales and earning cannot be sustained and will go into back into losses soon.

under 35m and maybe less a new higher mininum wage coming soon.

owner bluffing lah just like the many stories in the press right now about MA and capex etc. my advice is ignore everything company say and look at profit performance and sales.

coming quarter profit between 55m to 59m. see if Iam right in a few weeks.

Becareful coming results is ok but not much improvement from last Q so will not make price up much. The Q after coming Q profit will drop. Many the fund bought in recently are trading this counter and will start to exit before/after the coming result is announced in May as following Q profit will drop. Also the the institution recently issue reports/target prices are the one already collect low price and then issue report to distribute back to market at higher price. Be vigilant price can drop very quickly.

next quarter 75m+ profit with 2 sen div!

Announcement coming. It may go higher then IPO price. Watch carefully.

should be 45m-50m. more if the usd keeps going up.

super profit coming quarter with increase in dividend. very good year ahead!

results will be out next friday.

Results should be out this Friday or early next week. sage, good analysis.

Do not worry, you will not regret.

It's a no brainer. The price has been severely oversold since the last q result as market fear the earnings will keep sliding into losses again which will be proven wrong. This caused price to drop from .76 to about .69. Then you had the media exagerated worker unrest factory fire which did not cause any financial impact as announced by company. This caused price to go down further from .69 to about .66. Then you recently had the global market fear which affected every counter in every stock market globally. This caused the price to drop even further from .66 to a new yearly low of .53. Global fears are now subsiding with US economic recovery. The company's 2 largest customers seagate and wd are both US based companies. Anyone buying now is buying into the start of the rebound. I have been collecting more since last Thursday.

more then that for sure with dividend also. You mark my words the ones got scared and sold off recently will regret once price shoots up again. Many funds waiting on sideline for October to pass because this is traditionally a fearful month in US. As we get closer to end October you will see buying increasing and price increase will accelerate.

Reliable source. When results announced in few weeks you can find out how reliable.

The ones sold off recently have made a very big mistake. Source tells me the coming quarter profit is going to exceed last quarter and will continue to increase for the next 12 to 18 months. The cloud and enterprise hdd components the company produce have a 70% higher margin then consumer hdd component. The selling prices have already started increasing by about 30% for some components.

Yes. price should be .90+ after next few quarter results is announced. The only reason price is so low now is because of global sell off and market thinks earning will deteriorate which will be proven wrong when the few quarter results are announced.

Jefferies' Top IT Pick Is Western Digital, Sees Loser In IBM
John Seward, Benzinga Staff Writer
October 10, 2014 1:40 PM


Amid an aging infrastructure of business computing assets and the rise of so-called Big Data, an analyst launched coverage of computer hardware companies with a raft of mostly upbeat recommendations.

Western Digital Corp (NASDAQ: WDC [FREE Stock Trend Analysis]) got a "top pick" rating from Jeffries' James Kisner, who awarded International Business Machines Corp. (NYSE: IBM) with his only Underperform rating in the group.

With expanding use of cloud computing, Western Digital has top market share of commodity-style hard drives that are key components in the technology according to Kisner, who hung a $124 target on the company.

Although flash technologies are increasingly replacing traditional hard drives, Kisner said the cost advantages of Western's traditional magnetic media will persist far into the future.

Moreover, with nearly half Western Digital's revenue tied to the market for personal computers, Kisner said the sector should soon stabilize, with projections of a 2 percent growth rate in PC shipments for 2015, versus a 1 percent decline in the current year and a 7 percent drop in 2013.

As for old Big Blue, Kisner said much of its recent EPS growth has been driven by stock buybacks.

IBM is "in a period of transition" as the software business shifts to subscription models from licensing and as the adoption of cloud computing eats into IBM's more traditional outsourcing of computing services.

Kisner also cautioned about IBM's increasing reliance on vendor financing for its sales as well as trouble converting its earnings to free cash flow.

Citing scenarios broadly similar to Western Digital's outlook, other companies launched with Outperform ratings by Kisner include Seagate Technology PLC with a target of $70, EMC Corp. with a target of $37 and Nimble Storage Inc. with a target of $33.

http://www.benzinga.com/analyst-ratings/analyst-color/14/10/4914362/jefferies-top-it-pick-is-western-digital-sees-loser-in-i

Severely oversold and current global weakness is opportunity to take position.
Stock has dropped over 30% from .76 since laster quarter result announced on historical market
expectation earnings will deterioate (which will not be true). Seagate and Western Digital (both JCY largest customers) are now duopoly and the same consolidation is taking place amongst HHD component supplier like JCy leading to increasing average selling prices (ASP) and better earnings growth. The slight drop in last quarter result was due to traditional year end
finacial reporting period in US where both WD and Seagate stop taking inventory to clean up balance sheet leading up to financial year results announcement each year. Expect JCY earnings to grow each quarter on increasing ASP's as it monopolizes the global HDD component market. The wild swings from profits to losses each year will no longer be seen. This will be proven from next quarter results announcement in november.

There is also a market misconception that JCY is part of the semi conductor/microchip industry which is incorrect. It does not make nor does it supply any of these products.Both HDD makers WD and Seagate earnings continue to grow and projected to keep growing due to growing enterprise and cloud demand for HDD.

dear all, be careful with your money. my source tell me the coming result will be less then previous quarter and price may drop after announce.

source tell me profit will be similar to the flood time. He also tell me Seagate last week give all the order from Beyonic to JCY because Seagate do not want to be drag in the Beyonic court case and only JCY have capacity to meet the orders. The price should be flying next week.

http://www.bloomberg.com/news/2013-11-11/shaw-s-beyonics-claims-ex-ceo-bribed-to-divert-business.html

The capex of 50m is for the entire year and not just for the next quarter. Also it is not for new equipment but to automate existing equipment to reduce labour cost which will only improve the profit margin further from next quarter. Their orders/shipments have already started increasing significantly from WD and Seagate but will also will only be realised from next quarter. There will will be good surprises from next quarter, just a question of how good.

http://www.freemalaysiatoday.com/category/business/2014/02/21/jcy-to-spend-rm50m-on-automation/


JCY to spend RM50m on automation
The Malaysian Reserve | February 21, 2014
By Tanu Pandey

KUALA LUMPUR: Hard disk drive manufacturer JCY International Bhd will spend about RM50 million as capital expenditure this year mainly on automation of equipment.
“The digital data storage market is only going to grow. We are quite comfortable we will be having decent earnings this year,” executive director Wong Khing Kheng told reporters yesterday in Kuala Lumpur.

JCY is optimistic its shipments will increase in line with improving demand for hard disk drive.
The company now has factories in Malaysia, China and Thailand and its shipments are mostly sent to the US to customers like Western Digital and Seagate.

sage/andrew that is correct.


http://nexttrade.blogspot.com.au/2014/02/jcy-brighter-prospect-ahead.html


We can see that top-line, bottom-line & profit margin are all rising. More importantly, the 4-Q PBT & NP margins are both positive. All these positives were present in 2011 when JCY had a sharp rally from RM0.40 to RM1.60. The same may happen today.

JCY is poised to enter into its next upleg. The share price has just breached the line connecting the reaction highs (B-B1) at RM0.72-0.73. Its immediate resistance will be the horizontal line at RM0.90 and beyond that, we have resistance at RM1.00 (psychological level), RM1.05 & RM1.40.

Not only china market open up but demand for cloud service infrastructure also exploding. Cloud service provider data centres use HDD for storage because SSD is still 10 x more expensive. Very good times ahead for JCY.

http://www.eweek.com/cloud/ibm-invests-1.2b-in-cloud-infrastructure.html


IBM Invests $1.2B in Cloud Infrastructure


By Darryl K. Taft | Posted 2014-01-16 Email this article Email Print this article Print



IBM announced a $1.2 billion investment in its cloud infrastructure, targeting 40 data centers in 13 countries. IBM has pledged to commit $1.2 billion to significantly expand its global cloud footprint, beefing up its SoftLayer infrastructure and other components.

Big Blue said the investment includes a network of cloud centers designed to bring clients greater flexibility, transparency and control over how they manage their data, run their business and deploy their IT operations locally in the cloud.

In 2014, IBM plans to deliver cloud services from 40 data centers worldwide in 13 countries and five continents globally, including North America, South America, Europe, Asia and Australia. Among the newest IBM cloud centers to launch are Washington, D.C., Hong Kong, London, Toronto, Japan, India, China, Canada, Mexico and Dallas.

This global expansion is aimed at accelerating into new markets based on growing client demand for high value cloud. With this news, IBM now plans to have four or more data centers in all major geographies including Europe, Latin America, Asia and the Americas with plans to expand in the Middle East and Africa in 2015.

http://www.ft.com/intl/cms/s/0/1ffe5fac-7779-11e3-807e-00144feabdc0.html#axzz2szKC8V8b



Last updated: January 7, 2014 6:51 pm
China ends ban on foreign game consoles

By Tom Mitchell in Beijing
The Xbox One console is displayed on the final day of the E3 Electronic Entertainment Expo, in Los Angeles, California©AFP

Microsoft, Nintendo and Sony have finally gained the chance to enter China’s multibillion-dollar video game market, after the Chinese authorities lifted a 14-year ban on the sale of foreign-made consoles.

When it implemented the ban in 2000, the Chinese government had cited concerns about harmful effects that violent video games might have on the country’s youth. But the relaxation of the measure, which was formalised on Tuesday, will allow foreign-invested enterprises to ship their products into the country from factories in Shanghai’s new free trade zone.


Despite the restrictions, Microsoft’s Xbox, Nintendo’s Wii, and Sony’s PlayStation consoles became available to buyers in China, as many units were smuggled into the country. In 2012, Lenovo unveiled its own home entertainment console, which it marketed as a family exercise device or “sports machine” to circumvent the equipment import ban – the device was initially priced at more than $600, twice the cost of a comparable Xbox.

The ban also failed to dent the rapid rise of PC, internet and mobile gaming in China. Tencent, China’s most valuable internet company, now makes more than half of its $6.9bn annual revenues from gaming.

Together, these activities feed a total Chinese games market estimated to be worth $14bn annually.

Most of the world’s most popular consoles are already made in China – by contract manufacturers, for export. Such operations offer another potential source of leakage into the market.

However, the requirement that overseas manufacturers must base factories in the Shanghai free-trade zone means they cannot simply redirect their current output to China’s domestic market, and take advantage of existing economies of scale.

In September, Microsoft said it would establish a $240m joint venture with BesTV, an arm of the state-owned Shanghai Media Group. The two companies intend to produce “family games and related services”. BesTV’s Shanghai-traded shares rose more than 8 per cent on Tuesday.

Nevertheless, analysts noted that the Chinese State Council had said the ban’s suspension was “temporary” and consoles manufactured in the zone would be subject to “content examinations by cultural departments” – both factors that could dissuade foreign investors from risking their capital there.

“China’s game console market is virgin territory,” said Zhang Yi, head of iiMedia research. “But lifting the ban is like ice melting – it won’t happen overnight. There are still many obstacles. The most important one is approval from cultural departments.”

The liberalisation also highlighted the piecemeal impact of Shanghai’s new trade zone, the establishment of which was originally likened by its proponents to the rise of special economic zones in the early 1980s under Deng Xiaoping to kick-start China’s reform and opening programme.

Some of the zone’s backers had held out hopes it would bring big-bang reforms ranging from an opening of the country’s closed capital account to relaxation of strict internet censorship.

Additional reporting by Wan Li
Related Topics

China trade,
China,
Microsoft Corp

it will go past RM1, just a matter of time. source tells me they are getting massive orders from Western Digital and Seagate due to China lifting ban on game consoles (Xbox, playstation, Wii etc). What do all the Game Consoles use for storage? you guessed it, HDD.

Speakup, current SSD price still 10 X the price of HDD making it a very expensive and unaffordable mass storage medium. if you can make and sell me a 1 terabyte SSD drive
for the same price as a 1 terabyte HDD drive, then I might agree with you.

1 Terabyte SSD
http://www.centrecom.com.au/samsung-840-evo-series-1tb-ssd
$726 USD

1 Terabyte HDD
http://www.amazon.com/Toshiba-Canvio-Basics-Portable-Drive/dp/B005J7YBRW/ref=sr_1_3?ie=UTF8&qid=1389314811&sr=8-3&keywords=1+TB+external+harddrive
$74 USD

http://online.barrons.com/article/SB50001424053111903320604579111701851969992.html


Why Seagate Will Beat the Flash Mob
Pacific Crest upgraded the maker of hard disk drives to Outperform.

Seagate Technology (STX: Nasdaq)
By Pacific Crest Securities ($44.70, Oct. 2, 2013)

We are upgrading Seagate Technology to Outperform from Sector Perform with a $53 price target, which is based on eight times our fiscal 2015 earnings-per-share estimate.

We believe investors are not appreciating the opportunities for hard-disk-drive (HDD) makers in the build out of cloud infrastructure, and that they are overly concerned about declining PC sales and the potential of HDDs losing market share to flash memory in the form of solid-state drives (SSDs). Enterprise drives constitute only 15% of Seagate's (ticker: STX) unit sales but 39% of its gross profit.

Also, a shift toward enterprise drives benefits margins; enterprise margins are 70% to 80% higher than PC drive margins. As HDD business models get weighted toward enterprise drives, margins could improve, in our view.
[image]

Our recent Asia trip and retail pricing checks suggest that HDD pricing continues to be stable.

We believe HDD vendors trade at an attractive valuation of greater than 13% free-cash-flow yield and have aggressive capital-allocation strategies.

We believe Western Digital (WDC) (rated at Sector Perform) also benefits from the positive trends in the HDD industry. However, we prefer Seagate due to Seagate's aggressive capital-allocation strategy and we also believe Western paid a significantly high premium for the Virident Systems acquisition (25 times to 30 times Virident's annual revenue).

Seagate has double-digit growth in enterprise/capacity drives and 35% of its enterprise revenue is from its top nine cloud- and Web-scale customers. Enterprise drives constitute only 15% of its net sales but about 39% of its gross profit, while PC-related sales constitute about 65% of units but only 40% of gross profit, per our estimates.

Also, margins from enterprise drives are 70% to 80% higher than PC margins. Therefore, a shift to enterprise/capacity drives should benefit margins for the HDD companies. As HDD models get weighted toward enterprise drives, margins could improve.

We believe the market is overly concerned about potential for share loss to flash. World-wide NAND capacity is less than 45 exabytes per year, and about 85% of that capacity is used for mobile devices, flash cards and USB drives. This means that only about 15% of NAND capacity, which is actually less than 1% of total drive capacity, competes with HDD applications. Due to increasing capital intensity, lower output from the same semiconductor fabrication plants, and declining benefits of shrinks, NAND vendors are being highly rational about adding new capacity, which means that the argument that NAND will replace HDDs sounds highly exaggerated. HDDs are more than 10 times cheaper than flash. And since flash and HDDs are following the same cost-decline curve, we believe the cost differential could continue.

Seagate has raised its dividend three times in the past two years, and has talked about raising the dividend by at least 10% every year. The company is targeting to buy back 30 million to 35 million shares in F2014. Also, our discussions with the company suggest that Seagate is committed to reducing its outstanding share count from 370 million in the last quarter to about 250 million by calendar 2014.

We believe consolidation in the HDD industry could lead to better margins for the remaining vendors. Both Seagate and Western Digital have been very vocal about maintaining margins, and they show no inclination of increasing their market share through aggressive pricing. We believe investors are not appreciating the opportunities for HDD vendors in the build-out of cloud infrastructure and are overly concerned about declining PC sales and the potential share loss to flash. Enterprise drives constitute only 15% of Seagate's unit sales but about 39% of its gross profit. Also, a shift toward enterprise drives benefits margins as enterprise margins are 70% to 80% higher than PC margins. As HDD models get weighted toward enterprise drives, margins should improve, in our view.

-- Monika Garg
-- Kevin Chen

http://www.wkrb13.com/markets/240279/western-digital-corp-stock-rating-upgraded-by-citigroup-inc-wdc/


Western Digital Corp.’s “Positive” Rating Reaffirmed at Stifel Nicolaus (WDC)

Posted by Joseph Griffin on Dec 20th, 2013 // No Comments
Share on StockTwits

Western Digital Corp. logoWestern Digital Corp. (NYSE:WDC)‘s stock had its “positive” rating restated by equities research analysts at Stifel Nicolaus in a research note issued to investors on Friday, Analyst Ratings Network.com reports.

The analysts wrote, “We maintain our Buy rating on shares of Western Digital and increase our target price to $105 (was $82); our new target price reflects 12.3x P/E & ~7.1x EV/EBITDA and a ~10% FCF yield on our C2015 estimates. While investors should, in our view, continue to question the sustainability of a +130M/qtr HDD ship TAM into 1H2014 and expect focus on SSDs/Flash vs. HDDs (we continue to emphasize Flash capacity supply vs. HDDs), the underlying capacity demand and favorable cloud-driven mix shift impacts, coupled with the industry’s underlying financial model considerations (GM% consistency/upside potential vs. 27%-32% model, opex management, ROIC, FCF, and shareholder returns), we believe investor sentiment will remain positive on the HDD industry. We believe it is important to understand the transition in the HDD industry as storage capacity shifts from personal devices to the cloud, and thus shifts focus toward capacity shipped and the potential for HDD vendors to move into more of a cloud-driven solutions sales role over the long term.”

In other Western Digital Corp. news, Insider James Murphy sold 6,246 shares of the company’s stock on the open market in a transaction dated Friday, December 6th. The stock was sold at an average price of $78.72, for a total value of $491,685.12. Following the completion of the sale, the insider now directly owns 66,884 shares of the company’s stock, valued at approximately $5,265,108. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

A number of other analysts have also recently weighed in on WDC. Analysts at Needham & Company reiterated a “strong-buy” rating on shares of Western Digital Corp. in a research note to investors on Thursday. They now have a $100.00 price target on the stock, up previously from $81.00. Separately, analysts at JPMorgan Chase & Co. upgraded shares of Western Digital Corp. from a “neutral” rating to an “overweight” rating in a research note to investors on Tuesday. They now have a $100.00 price target on the stock, up previously from $56.00. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Western Digital Corp. in a research note to investors on Friday, December 13th. They now have a $83.00 price target on the stock. Seven equities research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. Western Digital Corp. currently has an average rating of “Buy” and an average target price of $81.07.

Shares of Western Digital Corp. (NYSE:WDC) opened at 82.10 on Friday. Western Digital Corp. has a 1-year low of $41.05 and a 1-year high of $84.70. The stock’s 50-day moving average is $75.53 and its 200-day moving average is $67.99. The company has a market cap of $19.402 billion and a price-to-earnings ratio of 20.91.

Western Digital Corp. (NYSE:WDC) last announced its earnings results on Thursday, October 24th. The company reported $2.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.05. The company had revenue of $3.80 billion for the quarter, compared to the consensus estimate of $3.78 billion. During the same quarter in the previous year, the company posted $2.36 earnings per share. The company’s revenue for the quarter was down 5.7% on a year-over-year basis. On average, analysts predict that Western Digital Corp. will post $8.08 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which is scheduled for Wednesday, January 15th. Stockholders of record on Friday, December 27th will be paid a dividend of 0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.46%. The ex-dividend date is Tuesday, December 24th. This is a boost from Western Digital Corp.’s previous quarterly dividend of $0.25.

Western Digital Corporation (NYSE:WDC) is a provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video.

The same research house (RHB) today release another TA report telling investor to liquidate. They desperate for price to remain low to collect. Buy/ hold and you will not regret.

I vested heavily already and will buy more if can get more fund. All the company director and IBs have been accumulating big amount. Fully confidence in this counter.

research house ask you to sell will you sell? Research house want to buy from you at low price. When they collect enough, they recommend you buy. Lol