JurTech   

JurTech

Jurtech is aggressively revamping itself  in moving up the value chain and diversifying its businesses.

Who knows, in another 1 ~ 2 years, it may becomes Foxconn (HongHai) of Singapore.

 

Don't pick up tech couters. Aim property and blue chips if STI rebound.

www.henryhts.multiply.com

 

NOTICE IS HEREBY GIVEN THAT the Share Transfer Books and the Register of Members of the Company will be closed on 12 December 2007 for purpose of preparing dividend warrants.

Duly completed registrable transfers received by the Company's Share Registrar, Messrs KCK CorpServe Pte. Ltd. at 333 North Bridge Road #08-00 KH Kea Building Singapore 188721 up to 5.00 p.m. on 11 December 2007 will be registered to determine shareholders' entitlement to the proposed dividend. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 11 December 2007 will be entitled to the proposed interim dividend.

The interim dividend of 1.0 cent per ordinary share, tax exempt under the Singapore one-tier corporate tax system, will be paid on 24 December 2007.

 

OCBC - Jurong Tech: Sequential recovery in 3Q07

3Q07 results show sequential recovery. Jurong Technology Limited (JTL) posted a softer set of 3Q07 results, with revenue down 15.2% YoY at S$239.9m and earnings down 28.5% at S$13.3m. However JTL saw strong sequential improvements with revenue up 22.4% QoQ while earnings fell 3.2%, the PATMI decline was due to a high base effect from an exceptional gain of S$3.8m in the previous quarter. Excluding this item, net profit would have grown 31.7% QoQ. Management attributed the improvement to higher sales of handset PCBA and modules as its major customer introduced new handset models. Its wireless accessories segment, especially its battery packs, also recorded healthy shipment volumes with continued strong orders from new and existing customers.

Efforts to diversify customer base paying off. In addition, management noted its efforts in customer diversification are also progressing smoothly as it started volume production of ULC (Ultra Low Cost) GSM modules and related products like WLL (Wireless Local Loop) phones and ULC mobile phones. Among customers added for this segment include Brightstar, Huawei, Philips and Sangfei. Wireless business now contributes around 83.4% of total revenue, versus 82.4% in 3Q06 and 80.7% in 2Q07. JTL also added a new customer (Asus) to make PC motherboards at its new Brazil factory, sending its PC peripheral revenue up 134.2% YoY and 18.3% QoQ to S$13.9m.

Change at the helm. At the same time, JTL announced a change at the helm, with the appointment of Cheang Chee Ming as its President and CEO, while outgoing Lee Lok Fui will assume the new position of Executive Chairman to ensure a smooth transition. Given that Cheang was the MD of subsidiary i-Sirius Pte Ltd, and hence no stranger to JTL's operations, we do not expect the leadership change to have any adverse impact. Meanwhile, JTL also announced a 3-for-10 rights issue at S$0.37 each to raise a gross proceed of S$51.8m, which it will use to expand its existing and new businesses.

Pares FY07 estimates further. Nevertheless, we need to pare our FY07 estimates as 9M07 revenue of S$654.2m (down 21.3%) and S$40.1m earnings (down 23.8%) only met 57.8% and 60% of our FY07 numbers respectively. This in turn reduces our fair value from S$0.83 to S$0.665, still based on 6x blended FY07/08 PER. Given the limited upside, we retain our HOLD rating.

 

Jurong Technologies Posts 3Q07 Net Profit Of S$13.3 Million; Expects Stronger 4Q07 On Higher Sales Of ODM products

o Revenue and net profit rose sequentially by 21.9% and 31.7%, respectively, backed by higher orders for handset PCBA and modules, as well as maiden contribution from new ULC GSM modules.

o Appointment of new CEO and President to drive new initiatives in opening up new revenue streams, breaking into new markets and driving greater vertical integration.

o Expects stronger 4Q07 in line with stronger seasonal demand and continued volume ramp of new ULC GSM modules and related products.

SINGAPORE, 12 November 2007 ? Jurong Technologies Industrial Corpn. Ltd (?Jurong Technologies? or ?the Group?) announced today its results for the July- September 2007 quarter (?3Q07?), which reflected gradual recovery in orders from its major customer and incremental contributions from new customers. It also expects a sequentially stronger 4Q07 on the back of seasonal demand and rising orders for its new Ultra Low Cost (?ULC?) GSM modules and related products.

The Group recorded net profit attributable to shareholders of S$13.3 million in 3Q07 compared to S$13.9 million in 3Q06 while revenue declined to S$239.9 million from S$282.8 million, respectively. Sequentially, the Group?s revenue rose 21.9% compared to S$196.0 million in 2Q07 while net profit rose 31.7% from S$10.1 million in 2Q07 (less one-time gain of S$3.8 million on disposal of investment).

The stronger sequential performance was backed by higher sales of handset PCBA and modules compared to 2Q07 as its major customer introduced new handset models. Its wireless accessories segment, in particular battery packs, also recorded healthy shipment volumes with continued strong orders from new and existing customers.

The Group?s efforts in customer diversification are also progressing smoothly as it commenced volume production of ULC GSM modules and related products, such as Wireless Local Loop (?WLL?) phones and ULC mobile phones in 3Q07. It is also starting to see increasing contribution from its non-handset product segments with growing shipment volume for personal computer motherboards as a customer in Brazil continued to introduce new models.

The Group?s efforts in vertical integration have also taken off and it is now capable of providing integrated metal and precision plastic solutions, complementing its strength in EMS capabilities. This has allowed the Group to reduce outsourcing needs and move up the value chain as an Original Design Manufacturer (?ODM?).

?We are pleased with our much-improved financial performance of the last quarter compared to 2Q07 and are confident of building upon this progress by continuing to develop new products, seek new customers and break into new geographical markets. By forging new recurrent income streams, we will be able to reduce our reliance on our major customer and generate better returns for shareholders,? said Mr Lee Lok Fui, who announced he was stepping down as President and Chief Executive Officer of Jurong Technologies to assume the new position of Executive Chairman of the company.

?I feel that it is crucial that the company execute a smooth succession plan. I am confident that the incoming new President and CEO, Mr Cheang?s management capability and industry experience will put him in good stead to drive the various existing and new growth initiatives and bring this company to a higher level of growth,? said Mr Lee.

Changes to key management

The Company concurrently announces the appointment of Mr Cheang Chee Ming as President and CEO of the Company, replacing Mr Lee. Commenting on his appointment, Mr Cheang said, ?I am excited at the opportunity to lead Jurong Technologies during this phase of development. The Company has developed strong EMS and ODM capabilities, a global manufacturing footprint, and a rapidly growing customer base. I intend to grow upon these excellent foundations by developing a stronger suite of products and services for our customers while securing more global customers and developing new distribution channels.?

Mr Lee Ying Cheun, the current Non-Executive Chairman of the Company will relinquish his position and be appointed as the Non-Executive Vice Chairman and the lead Independent Director of the Company.

4Q07 Outlook

The Group expects its wireless communications business to continue benefiting from rising handset demand from emerging markets as well as the introduction of new highend products, such as smart phones, to mature markets. Its major handset customer has also guided for a sequentially stronger 4Q07 with the introduction of new handset models to capitalise on expected higher demand during the festive seasons.

?We are expecting higher orders for all our handset-related products and services, including handset PCBA, complete/partial box-builds, wireless modules as well as battery packs,? said Mr Cheang. ?The fastest growth will however come from our new ULC GSM modules and related products, such as ULC mobile phones and WLL phones. We have already secured several new customers for this segment, including several global wireless products distributors and handset makers in various regions, such as Latin America, and are expecting strong volume ramp to meet their demand.?

In the non-handset segment, the Group expects contributions from the consumer electronics segment to increase with higher orders for digital TV solutions and Bluetooth solutions while volume for PC motherboards is expected to increase with the launch of several new models. The Group is also expecting to commence pilot production for new contract wins from the automotive and medical industry in 4Q07 with volume production expected from 1Q08 onwards.

 

CITI

Better guidance from Moto - Motorola's better than expected guidance does not change our cautious fundamental view on suppliers like JTech and Hi-P. We recognize valuations are undemanding and appears tempting to turn positive but remains challenging to achieve a sustained recovery over the next 6-12 months.

Impact on Jurong Tech (JTIL.SI - S$0.69; 3M) ? The firm is the best proxy to Motorola's prospects given 85% of sales concentration. After a disappointing 1H07, 2H07 earnings should show stronger improvements. We anticipate new handset models to drive 20-25% qoq improvement, albeit from a low base, and profit to reach S$16.8m (+20% qoq) underpinned by new handset model introduction. Another key product includes ultra low-cost GSm module for a new customer; volume is expected to reach more than 2m units by end-FY07.

 

Motorola introduces nine new mobile phones

Motorola announced on last Thursday, the company would launch nine new mobile handsets this quarter.

Among them is a luxury version of the Razr2, the latest successor to its once top-selling model. The Razr2 V8 is being touted as a potential holiday gift with gold-plated accents, snakeskin texture, ultra-slim design and storage of up to 1,000 songs, among other features. It costs US$250 to US$300.The company said four of the seven new W-series phones the W160, W180, W213 and W377 feature FM radio, which requires headphones. Six of the handsets contain Motorola's proprietary CrystalTalk technology, which automatically adjusts audio for clear calls in noisy environments. The company also introduced the Moto U9, a lightweight phone and music player with clamshell design and stereo Bluetooth wireless technology, a two-megapixel camera with 8x zoom and multiple messaging capabilities.

News boosted Motorola?s share price. Motorola was losing market share in 1H07 affected by slower-than-expected market response to the launch of new flagship models. The stock is down 8% for the year but has started to rebound androse 9.3% to $18.53 in Sep 07.

 

Strongest PMI reading in 10 months. Thanks to an across-the-board recovery, overall and tech PMI rose to their highest readings this year. Overall PMI rose 2.2 points to 53.9, the highest reading since Nov 06?s 54.6, while the all-important tech PMI hit 53.9, the highest reading since Dec 06?s 55.4, with new export orders hitting a 40-month high of 60.2. And probably due to the stronger export orders, tech manufacturers added more workers in September, pulling the tech employment PMI to 53.5, the third straight month of positive reading, and the highest in nearly 1.5 years. The tech sector in Singapore certainly looks like it is on the road to recovery. Tech output is projected to expand 3.5- 4% yoy in 3Q07 vs. 1H07?s 1.5%. The latest PMI reading supports our view that the recovery in 3Q manufacturing will underpin 3Q GDP growth of 10% yoy or 9% qoq annualised.

 

Interesting .... New MOTORIZR Z6tv phone out on sell 05th October 2007 in US.

 

http://www.marketwatch.com/news/story/verizon-wireless-introduces-ultimate-consumer/story.aspx?guid=%7B064037D0%2D23E3%2D4E12%2DB3A2%2DAA9E10A26816%7D&dist=TQP_Mod_pressN

http://www.uberphones.com/2007/05/motorola/motorola_z6tv_leaked/

 

 

what is happening with this stock?  it just seems to go down and down further

 

Jus about its fair value for now but to increase its value, the business needs to improve to build shareholders and to-be shareholders confident. 

Show us what you have got JurTech.

 

According to the wave calculation, the first resistance price should be (0.96-0.65)*0.62+0.65=0.845 (theoretical calculation). Moreover, this counter price is still underestimated. I still hold this stock tightly. I will continue amass this counter.

 

Jurtech on the warpath for 0.75 initial resistance. 

 

Finished with the downtrend and now ranging between 0.68SGD - 0.71SGD.  Look set to reverse. Confirmation of a reverse trend needs to breach 0.75SGD.

 

my guess is correct , no use... Dow future index drops more than 100 points, tonight will another blood sea in the US.. tmr another round of sell down at Asia, walau..

I just bought CSC and FIberchem yesteraday, *(^&^$%@#@#$()*, hope all the best man... if STI drops to 2800, i will come out all my cash man... come on, come to 2800 !!!!! i am waiting !!!

 

jackjames,

Your guess is correct ! 

 

breaking 0.70 ??????

 

DBS Vickers - Jurong Tech Ind Corp

S$0.76 HOLD Price Target : S$ 0.78 (Prev S$ 0.90)

Excluding exceptional gains of S$3.8m from the divestment of investment and S$4m foreign exchange gain, net profit stood at S$6.2m, down 64% y-o-y and 52% q-o-q. This is much lower than our expectation of S$12m in net profit. The main culprits were: Lower sales. Revenue stood at S$196m, down 21% y-o-y and 10% q-o-q. The strong ramp in battery pack business and the recently acquired plastics & metal business was not sufficient to compensate for the slowdown in handset business from Motorola.

Exceptionally high operating costs. Administrative and other operating costs at S$23.3m were up 22% y-o-y despite lower sales. This was due to (a) movement of equipment for consolidation to achieve economies of scale and

(b) Higher development costs for the products to be launched under the ODM business. High interest expense. Interest expense at S$6.6m was up 167% y-o-y due to higher bank borrowings to finance capex, working capital and investments.

 

2Q07 results still muted.

For the interim, revenue fell 24.4% to S$414.3m, while earnings slipped 21.5% to S$26.7m, meeting 36.6% and 39.8% of our original FY07 estimates. JTL also declared an interim dividend of S$0.01/share, versus S$0.02 for the same period last year.

Sequential recovery from 3Q07. Going forward, JTL expects to see sequential recovery in both top and bottom line in 3Q07, driven by a 20- 30% pick-up in orders from its major handset customer for battery packs and complete box-build of new PDA and 3G phones. JTL revealed that it will also commence the production of battery packs for a new customer soon, but we believe the main boost will come in 4Q07. JTL also expects positive contribution of 5-10% of 4Q07 revenue to come from ULC (ultra-low cost) GSM modules, handsets and WLL (wireless local loop) phones.

Execution risk remains. As such, JTL said 2H07 performance should be better than that of 1H07. But we believe that execution risk remains; we remain unimpressed by the new phones from its major customer; JTL is still untested in the ULC arena and could face a long learning curve; potential impact from sub-prime worries in the US on overall consumer sentiment and major customer?s sale. Due to the poorer operating matrix, we have also cut our FY07 and FY08 earnings estimates by 13.1% and 17.6%, respectively. This means our fair value will ease from S$0.90 to S$0.83, even as we push out to 6x blended FY07/08 PER versus 6x FY07 previously.Jurong Technology Limited (JTL) posted a pretty muted set of 2Q07 results as expected, with revenue down 21.4% YoY and 10.2% QoQ at S$196.0m, in line with our forecast of S$196.8m, as its business was still affected by a ?delay in major customer?s execution plan?. No surprises here as that handset maker contributes around 60-70% of JTL?s revenue. Although net profit dropped 20.6% to S$13.9m, it was up 8.7% QoQ, and also ahead of our forecast of S$10.5m. However, we note that the earnings were boosted by an one-off investment gain of S$3.8m and a forex gain of S$4.0m. Excluding these gains, profit from its core operations actually fell 34.9% YoY and 20.9% QoQ to S$11.7m.

 

2358 GMT [Dow Jones] STOCK CALL: Macquarie downgrades Jurong Technologies
(J09.SG) to Underperform from Outperform, cuts target price to S$0.70 from
S$1.25 after lowering FY07 earnings forecast 9% to reflect loss of market
share by key customer Motorola. Says while contract electronics
manufacturer has been diversifying its revenue base, its non-handset,
non-Motorola revenue still only makes up about 30% of total sales. Stock
off 5% at S$0.76 yesterday. (FKH)