Jackin prospects good

PUBLISHED : Sunday, 11 July, 1999, 12:00am
UPDATED : Sunday, 11 July, 1999, 12:00am

JACKIN International is an information technology group which manufactures and sells blank and content-based information storage media products, including CD-Roms, video-CDs and CD-lens cleaners.

OSK Asia Securities recommends Jackin as a buy, saying it is still undervalued.

The brokerage said a 60.7 per cent recovery in its operating profit for last year indicated the group had successfully recovered from a setback in 1997.

'As an information technology-related company with close ties to giants such as Microsoft and IBM, its present share price is undervalued even after its recent rise,' OSK said.

Prospects in the industry 'over the next few years' remained good and the group was exploring opportunities through strategic expansion.

OSK said blank floppy discs remained the main contributor to the company's turnover and it planned to relocate its floppy disc production facilities to Macau to enhance operational efficiency.

The issue of $3.9 million in convertible bonds last year had helped improve Jackin's financial position.

Suzanne Harrison