Jaks Resources 1Q net profit surges 600% to RM7.5 mil

KUALA LUMPUR (May 24): Jaks Resources Bhd net profit for the first quarter ended March 31, 2017 surged 600% to RM7.5 million from RM1.07 million a year earlier, driven mainly by its construction division, especially its Vietnam EPC construction work.

Revenue for the quarter jumped to RM154.79 million from RM122.81 million a year earlier, while earnings per share increased to 1.72 sen from 0.24 sen a year earlier.

In a statement today, Jaks said contribution to the group’s revenue was mainly derived from construction progress from both its construction works and property development projects.

On its prospects, Jaks’ chief executive officer, Andy Ang Lam Poah said the company was optimistic it would perform satisfactorily, backed by the strong outstanding construction order book.

“The US$454.5 million EPC Contract 2 for Vietnam IPP has progressed according to schedule and we anticipate the construction work for the Vietnam IPP will contribute significantly to the Group’s earnings for next few years.

“We will continue to pursue various road, water, power and sewerage infrastructure tenders domestically and in Vietnam to grow our construction order book.

Ang said Jaks’ construction order book currently stands at RM2.6 billion, anchored by the EPC Contract 2 for the 25-year power plant concession in Vietnam (contract value US$454.5 million or approximately RM1.89 billion) and the contract award for Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) contract value RM508.5 million).

“In addition, the property development division has unbilled sales of RM197.6 million as at March 31, 2017,”said Ang. — theedgemarkets.com

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