KUALA LUMPUR (May 9): Jaks Resources Bhd announced today a 60.4% jump in its net profit for the first quarter ended March 31, 2019 (1QFY19) to RM28.62 million, from RM17.84 million a year ago, mainly on higher contribution from its Vietnam engineering, procurement and construction (EPC) works.

Quarterly revenue grew 41.7% to RM297.80 million, from RM210.20 million in 1QFY18, the group said in a stock exchange filing.

The Vietnam EPC construction work contributed revenue of RM255.8 million, compared with RM93 million achieved in the corresponding quarter last year. 

The higher progress billings and profit recognised there helped lift profit before tax for its construction division to RM58.3 million, from RM27.1 million previously.

The group’s property development & investment division, meanwhile, recorded a slightly lower loss before tax of RM14.5 million, compared with a loss before tax of RM14.8 million in 1QFY18.

Jaks said the group expects the current financial year to continue to be challenging.

It expects the local construction division’s outlook to remain challenging, but said the overall performance of the division should perform satisfactorily in 2019, with contribution from the Vietnam EPC contract.

“The performance of the property development and investment division will remain challenging due to the key issues of price 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 and ascertained charges. As for our investment property, EVOLVE Mall, the cost saving initiatives and new leasing strategies taken have had some positive impact,” it said.

Shares of Jaks rose four sen or 5.5% today to 77 sen at market close, valuing the group at RM450.18 million.