JCY Overview

Business Overview
- Largest HDD manufacturer, and also unit production for base plates, top cover assembly, APFA and antidisc. Disk media and PCBA are not manufacture by JCY
- Components used primarily for 3.5 and 2.5 inch HDD.
- Main customer Nidec, which help distribute direct.indirect to Western Digital and Seagate
- Western Digital own 26.8% and Seagate own 31.5% of the market share (how many units in world? )
- 3 years Capex = RM465.5mil
- Cost competitive due to benefits of priority relationship with customers, greater bulk discount, better credit terms and high quality production
-Long term strategic partnership with Western digital and start supplying base plate on 2006 and antidisc on 2008 to Seagate
- Started on 2009, Supply base plates to hitachi and Samsung
- Experienced Mgmt team


Org chart



Factors to further growth
- Growth of overall market
- Growth of Key customer share in market
- Expansion on products
- Population of netbook, external drive, facebook,

Company Strategy
- Build low cost, high quality and reliable product
- Expanding on strategic customer relationship and support
- Investing in capacity expansion
- Continuing improving on product efficiency and lowering cost
- focus on high value product (check section 7.3 & 7.4)

Risks





Risk Factors :

• Increase cost of stainless steel, aluminium , rise will cause lower operating margin

Share outstanding : 2,044, 860,000

Logistic Hub :
PJ - M'sia , Bangkok - Thailand

Received payment :
45-60 days

History :



Point out which facility more productivity

Harddisk trend :




Impact of Solid State Drive(SSD) :

In late 2008, oversupply NAND flash market and pricing per GB of Flash memory was decline 50% and the price is 18x of HDD


Key Components of HDD :



Components manufactured by JCY :
Base plates(*) , Top covers(*) , Actuator(**), antidisc

Compoents manufactured by EngTek :
Base plates, Actuator, Antidisc

Components manufactured by Notion :
Antidisc

(*) - Top supplier of the world
(**) - Top supplier on volume basis

Cost material :
Cost of aluminium can range 40-60% of production cost. That's included aluminium ingots, extruded bars, stainless steel and chemical. FCB, flexible flex circuits, chips and pivots