JCY sees surge in earnings, approves RM300m capex

Pursuant to Paragraph 9.03 of Listing Requirements and Paragraph 4.1 of the Corporate Disclosure Guidance issued by Bursa Malaysia Securities Berhad, the Board of Directors of JCY International Berhad (“JCY” or “the Company”) wishes to inform the shareholders and potential investors that, having assessed the curently available information, the Group is likely to record an increase in net profit for the financial quarter ended 31 December 2011 of approximately 1,900% compared with the corresponding period in the previous financial year (period ended 31 December 2010, Net profit: RM7.5million) or 460% compared with the immediate preceding quarter (period ended 30 September 2011, Net profit: RM26.4million) due to the following reasons:-

1. Increase in Average Selling Prices caused by component shortages arising from the October 2011 floods in Thailand;
2. Effective product mix;
3. Appreciating US Dollar against RM; and
4. 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 capital expenditure budget of approximately RM300 million over the next 24 months period, for expansion of its facilities in Malaysia, Thailand and China.

Barring any unforeseen factors, the Company expects to be able to increase its global market share of the HDD mechanical component industry over the next 24 months.

MAS-Airasia warrant exchange gets SC nod

The Securities Commission (SC) has approved the proposed warrants exchange exercise between Malaysian Airline System Bhd (MAS) and Airasia Bhd. In a filing to Bursa Malaysia today, MAS said the SC approved the warrant exchange exercise under Section 212 (5) of the Capital Market and Services Act 2007 of Malaysia. The approval is subject to the condition that the company must comply with the relevant requirements pertaining to the implementation of the proposal as stipulated under the SC’s Equity Guidelines. — Bernama

Priceworth unit apptd logging contractor in Solomon Islands

KUALA LUMPUR (Jan 4): Priceworth International Bhd’s unit has been appointed a contractor to carry out logging on Kolombangara Island, in the western province of Solomon Islands.

Priceworth said on Wednesday, its unit, Ligreen (SI) Ltd had sealed a logging management and TECHNOLOGY agreement with Success Company Ltd to undertake the logging at a concession site measuring 1,053 ha.

“The licensee and contractor shall jointly market the logs harvested from the concession area. In consideration of the logging activities to be carried out by the contractor, the contractor shall receive 55% of the declared sales contract from the licensee,” it said.

Priceworth said the upside from the contract was that the group would have access additional source of logs for the group’s business involving the manufacturing and sale of timber products and logs.- The Edge

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