JAKS Resources' 3Q earnings jump over twofold

by **Cals** Tue 17 Nov 2015, 18:19

JAKS Resources' 3Q earnings jump over twofold

By Ahmad Naqib Idris / theedgemarkets.com | November 17, 2015 : 6:00 PM MYT

KUALA LUMPUR (Nov 17): [size=16]JAKS Resources Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 0.65) had more than doubled (up 113%) its net profit to RM5.91 million for the third quarter ended Sept 30, 2015 (3QFY15), from RM2.78 million in 3QFY14, mainly on contribution from its construction orderbook and billings from property development.

The improved performance was on the back of a 21% jump in revenue to RM114.15 million, from RM93.78 million a year earlier, its filing on Bursa Malaysia today showed.

JAKS said the strong topline performance for the quarter was mainly contributed by revenues from its property development division (RM47.4 million) and its construction division (RM45.9 million).

Meanwhile, its trading division generated RM20.8 million in revenue.

For the nine-month period ended Sept 30 (9MFY15), net profit soared 73% to RM12.25 million, from RM7.06 million in the previous year; while its latest quarterly revenue inched up 4% to RM314.25 million, from RM301.77 million.

“The management is pleased with the performance in the nine-month period. The stronger results were attributed to steady construction progress of our projects within the construction and property development divisions.

“Our on-going construction projects include several sewerage, water and road infrastructure projects,” said JAKS chief executive officer (CEO) Andy Ang Lam Poah in a media statement.

He said the company will continue to tender for new domestic construction projects to build up its construction orderbook, eyeing contracts for infrastructure-related works and also opportunities to participate in the replacement programme for water piping in Malaysia.

Meanwhile, the commencement of the engineering, procurement and construction (EPC) for the Vietnam power plant will allow the group to strengthen its platform in the infrastructure construction sector, to pursue similar projects in the region, said Ang.

To recap, the group secured the US$454.5 million (RM1.99 billion) EPC contract from JAKS Hai Duong Power Company Ltd, the operating company for the joint venture between JAKS and China Power Engineering Consulting Group Co Ltd (CPECC).

JAKS closed unchanged at RM1.16 today, for a market capitalisation of RM512.88 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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