JAKS’ Vietnam JV lifts 1Q profit as construction, property investment showed mixed operational trends

PETALING JAYA (May 27): JAKS Resources Bhd started its financial year ending Dec 31, 2026 with higher contributions from its Vietnam power joint venture (JV) cushioning weaker results from property investment and construction-related activities.

For the first quarter ended March 31, 2026 (1QFY2026), the group’s Bursa filing indicated that its construction and property-related segments remained in the red but showed mixed operational trends. 

The construction division reported a smaller loss before tax of RM9.43 million versus RM10.18 million a year earlier, with modestly higher revenue of RM545,000 compared with RM515,000 in 1QFY2025. The improvement in segment loss was mainly due to lower costs during the period.

The property investment division, which owns Evolve Mall in Ara Damansara and Pacific Tower Business Hub in Petaling Jaya, posted revenue of RM3.32 million, slightly lower than RM3.53 million in the previous corresponding quarter. Loss before tax for this segment widened marginally to RM9.83 million from RM9.44 million, in tandem with the softer topline and higher utility expenses.

The power-energy division continued to gain traction. Segment revenue rose to RM5.44 million from RM4.75 million in 1QFY2025, while the division swung to a profit before tax of RM885,000 versus a small loss before tax of RM25,000 previously, mainly on the back of higher energy-related income. 

At the same time, the investment holding and others segment — which primarily captures the group’s share of profit from its Vietnam coal-fired power plant JV — delivered a profit before tax of RM30.61 million compared with RM30.26 million a year earlier.

Group-wide, JAKS’ revenue grew 6% year-on-year to RM9.31 million from RM8.80 million. Profit before tax climbed 15% to RM12.24 million from RM10.62 million, supported by lower operating costs and a higher share of profit from the Vietnam joint venture, which increased to RM33.20 million from RM32.53 million. 

Net profit came in at RM12.11 million, up from RM10.45 million in 1QFY2025, while profit attributable to shareholders rose to RM16.95 million from RM15.07 million. This translated into basic earnings per share of 0.65 sen, versus 0.58 sen previously.

As at March 31, JAKS’ total assets stood at RM2.33 billion, broadly unchanged from RM2.32 billion as at end-December 2025. Shareholders’ funds increased to RM1.59 billion from RM1.57 billion, lifting net assets per share to 61 sen from 60 sen. Total borrowings, including bank overdrafts, amounted to RM443.42 million, all of which are secured.

Looking ahead, JAKS said it remains cautious amid a softer construction outlook and competitive retail property market, but is banking on its power-energy division to drive future growth. 

Through its 51%-owned subsidiaries JAKS CP Solar One Sdn Bhd and JAKS CP Solar Two Sdn Bhd, the group is developing two 99.99MW large-scale solar (LSS) plants in Setiu, Terengganu, which are expected to contribute positively to revenue and earnings over the medium term. 

At the same time, it is exploring additional renewable energy opportunities via greenfield projects and strategic acquisitions.

The construction division will continue to pursue selective tenders and direct negotiations in niche segments, focusing on jobs that offer sustainable margins. 

On the investment side, JAKS plans to enhance occupancy and rental yields at Evolve Mall and Pacific Tower to stabilise recurring income. No dividend was declared for the quarter.

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