PETALING JAYA: Jaks Resources Bhd’s net profit for the first quarter ended March 31 surged 60.4% to RM28.62 million from RM17.84 million a year ago, driven by higher progress billings and profit recognised from the Vietnam engineering, procurement and construction (EPC) works.
In a filing with Bursa Malaysia, the group said its construction division’s pre-tax profit more than doubled to RM58.3 million from RM27.09 million.
The property development and investment division’s pre-tax loss narrowed to RM14.48 million from RM14.84 million.
Jaks’ first-quarter revenue rose 41.7% to RM297.8 million from RM210.2 million a year ago.
During the quarter, the Vietnam EPC construction work contributed revenue of RM255.8 million compared with RM93 million a year ago.
Jaks said the construction works for Vietnam EPC is expected to meet its schedule in the current year and is expected to contribute positively to the group.
Although the local construction division’s outlook remain challenging, the overall performance of the construction division is expected to perform satisfactorily this year with the contribution from the Vietnam EPC contract.
However, the performance of the property development and investment division will remain challenging due to the key issues of affordability and the overhang in the property market.
“Delivery of some of the developed properties are delayed and this division would be affected by the liquidated ascertained damages charges. As for our investment property, Evolve Mall, the cost saving initiatives and new leasing strategies taken have had some positive impact,” it said.
