Friday 29 Mar 2024
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KUALA LUMPUR (Nov 29): Jaks Resources Bhd has reported a net loss of RM2.78 million for the third quarter ended Sept 30, 2018 (3QFY18), its first loss-making quarter after a year and a half, compared with a net profit of RM9.65 million a year ago.

The company attributed that loss mainly to the performance of its property development and investment division which recorded a loss before tax of RM17.8 million, versus a profit before tax of RM1 million previously.

“The difference was mainly due to RM18.1 million liquidated and ascertained damages (LAD) reversal in the preceding year's third quarter as the amount was reclassified to contingent liability pending the finalisation of the account settlement,” said Jaks Resources in a filing today.

Quarterly revenue fell 10.86% to RM125.16 million from RM140.4 million previously.

For the cumulative nine months ended Sept 30, 2018, Jaks Resources’ net profit rose 44.98% to RM27.8 million or 5.25 sen a share from RM19.18 million or 4.16 sen a share last year. Revenue was up 10.2% to RM513.69 million from RM466.13 million.

Going forward, Jaks Resources said the construction division is expected to perform satisfactorily in 2018 despite the challenging outlook for the local construction division.

“The progress of the construction for the Vietnam power plant is proceeding as scheduled,” said Jaks Resources, adding that the Vietnam plant’s engineering, procurement and construction (EPC) construction works is expected to meet the project schedule in the coming quarters.

Additionally, the company said the performance of the Property Development and Investment division had been affected by the high operating cost, depreciation charge and financing expenses at the EVOLVE Mall, much lower recognition of sales revenue from the property development as most of the units have been taken up coupled with the LAD charges.

While the EVOLVE Mall will continue to face challenges in improving its rental yield with the oversupply of retail space in the Klang Valley, Jaks Resources said the group is working towards further reducing the operating costs and to improve the performance of this division.

Shares of Jaks Resources closed six sen or 9.45% lower at 57.5 sen today, for a market capitalisation of RM313.92 million. Over the past year, the stock has fallen by 61.41%.

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