KUALA LUMPUR (June 1): Total waste management outfit JAG Bhd posted a net profit of RM1.54 million for the first quarter ended March 31, 2020 (1QFY20) versus a net loss of RM6.19 million a year earlier, on higher revenue recorded by the manufacturing division and the sales of high purity precious metals.
Revenue for the quarter rose 46.3% to RM37.39 million from RM25.55 million previously. Earnings per share was 0.08 sen versus loss per share 0.41 sen earlier.
In a statement, JAG executive director Datuk Ng Meow Giak said while it has been leveraging strong commodity prices, the group has also continued its efforts to optimse efficiency of its production process.
“To this end, we have invested RM3.6 million in capital expenditure, which is expected to double our maximum carbonation treatment capacity when it is fully operational in June 2020.
“With this, we foresee an increase in capacity, which will drive up revenue for our e-waste management division,” said Ng.
Ng said JAG kicked off the 2020 financial year on a positive note, with a marked improvement in its financial results.
“This was despite the implementation of the movement control order (MCO) on March 18 which halted our operations at the tail-end of the quarter under review."
Ng said the group has formed a crisis task-force responsible for monitoring and implementing strict safety work procedures that fully complies with the regulations set by the National Security Council (NSC) as it allows the group to operate safely and be prepared for similar situations in future.
He said JAG also remains cautiously optimistic of its outlook for the year as the Malaysian government has identified the electrical and electronics (E&E) industry as an essential sector during the MCO, reaffirming its importance to the economic eco-system.
“On the whole, the outlook for the (E&E) industry in Malaysia is encouraging on the back of the acceleration in technology.
“In fact, we believe the E&E industry, which we are dependent on for raw materials, will play a critical role in terms of structural reforms to reduce vulnerabilities in the country due to the immense opportunities in areas such as remote working, virtual learning and e-commerce.
“Although the year will be challenging, we believe we will be able to turn in a positive year, as the supply from current contracts are still being honoured by suppliers,” said Ng.
He added that JAG has a sufficient cash level of RM46 million as of March 31, which can be realised gradually to improve cash position.
At 12.21pm, JAG shares rose 15.38% or one sen to 7.5 sen, valuing the group at RM136.39 million.
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