PETALING JAYA: JCY International Bhd
expects to generate RM250mil in incremental revenue from new customers by financial year 2028 (FY28).
“Although short-term cyclical pressures persist, JCY’s diversified portfolio, ongoing product qualifications and established manufacturing capabilities will provide a strong foundation for sustainable growth,” it said in its latest annual report.
With plants located mainly in Malaysia and Thailand, JCY has further strengthened its position as the preferred regional supplier for precision casting and machining solutions.
Maintaining its competitive edge, the group highlighted focus on horizontal growth and targeted diversification, with significant attention toward automotive and consumer products.
Since the beginning of FY25, the group has confirmed six new customers, and one more newly added in its most recent quarter.
JCY said the on-boarding and qualification process for new customers is typically progressive and spans one to two years, with the initial ramp-up of the first set of components before advancing to subsequent product sets.
“Production of parts currently under qualification is not expected to generate meaningful revenue until sometime in 2026, as this is contingent on the setup of our customers’ factories,” it explained.
JCY has invested RM23.5mil in product qualifications and ramp-up efforts, with RM8.2mil spent in the current reporting quarter.
“We expect this momentum to continue over the next six months,” it added.
Meanwhile, JCY has noted that some of the new customers are tied to non‑hard disk drive (HDD) product streams, reflecting the group’s diversification efforts beyond traditional HDD components.
“We are aggressively leveraging our precision engineering heritage to reduce cyclical dependency by expanding into non-HDD sectors,” it said.
Throughout FY25, JCY intensified engagements with new global partners, moving several projects from the negotiation to advanced technical qualification phase.
The group has modernised its facilities to provide solutions for adjacent industries, ensuring a more resilient and balanced revenue stream.
Across its regional operations, JCY pointed out Thailand’s robust infrastructure and proximity to key industry partners and customers was critical to the group’s strategy to ensure long-term growth.
“Our Thailand operations play a foundational role in the regional supply chain, ensuring we can respond with agility to customer requirements,” it explained.
The group said it is consolidating its facilities to support its move into high-end enterprise segments. By doing so, JCY will ensure seamless supply-chain scaling for its next-generation products.
Ahead of the expected seasonal HDD peak, JCY expects headwinds in its labour-intensive core operations requiring skilled precision manufacturing.
As the group expands into automotive and high-end HDD components, it noted exposure toward stringent quality standards.
Nevertheless, JCY said it is driving productivity through automation to reduce reliance on manual labour, while maintaining fair employment and social compliance.
JCY is also exposed to foreign currency fluctuations due to its international operations.
“Volatility in exchange rates between the local currencies and US dollar is expected to have a material impact on the group’s financial performance,” it said.
JCY currently employs natural hedging to partially mitigate foreign-exchange risk, complemented by financial hedging instruments.
JCY plunged into the red with a net loss of RM62.94mil in the financial year ended Sept 30, 2025, from a net profit of RM28.81mil in the previous year.
This was on the back of a dip in revenue to RM477.18mil from RM606.68mil.
