Jaks Resources Q1 net profit jumps over seven-fold

PETALING JAYA: Jaks Resources Bhd's net profit jumped more than seven-times to RM7.54 million in the first quarter (Q1) ended March 31, 2017, from RM1.07 million in the same period last year, on the back of higher revenue.
Revenue increased 26% to RM154.8 million, compared with RM122.8 million in the previous corresponding quarter, contributed mainly by its construction division.
In a statement today, Jaks said the group's construction division recorded revenue of RM120.2 million in Q1FY17, compared with RM79.6 million a year ago, an increase of 51%. It said the increase was due to recognition of RM62.3 million Vietnam IPP EPC 2 construction revenue.
The group said its property development division contributed RM32.7 million to the group's revenue.
On prospects, its CEO Andy Ang Lam Poah said the group is optimistic that it will perform satisfactorily, backed by the strong outstanding construction order book.
He said the US$454.5 million EPC Contract 2 for Vietnam IPP has progressed according to schedule and he anticipates 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," he added.
The group's construction order book currently stands at RM2.6 billion, while its property development division has unbilled sales of RM197.6 million as at March 31, 2017.