Jaks Resources posts six-fold rise in 2Q net profit on one-off land disposal gain

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KUALA LUMPUR (Aug 28): Jaks Resources Bhd’s second quarter net profit soared more than six times to RM12.74 million from RM1.98 million a year earlier, thanks to a RM5.8 million gain from sale of land in Subang Jaya and higher progress billings from its engineering, procurement and construction (EPC) contract in Vietnam.

Earnings per share for the second quarter ended June 30, 2018  rose to 2.44 sen from 0.44 sen, the group said in a filing with Bursa Malaysia.

Quarterly revenue rose 4.32% to RM178.34 million from RM170.94 million previously.

Total net profit for the first two quarters jumped 221.11% to RM30.58 million from RM9.52 million in the previous corresponding period, while revenue increased 19.28% to RM388.53 million from RM325.73 million.

JAKS said it recognised revenue of RM156.5 million from the Vietnam EPC contract for the six-month period, resulting in a 28% year-on-year revenue increase for its key construction division at RM323.6 million.

The construction division posted a profit before tax of RM44.64 million in the January-June period, up 64% from RM27.19 million a year ago.

The group’s property development and investment division, however, registered a higher loss before tax of RM25 million for the six months, from RM23.9 million previously.  

Shares of JAKS closed down one sen or 1.03% at 96.5 sen, today with 6.43 million shares traded, giving the group a market capitalisation of RM526.84 million.