KUALA LUMPUR (Feb 23): Jentayu Sustainables Bhd (formerly known as Ipmuda Bhd) returned to the black with a net profit of RM59.93 million for its second quarter ended Dec 31, 2021 (2QFY22), compared to a net loss of RM1.96 million a year prior, backed by a disposal gain on investment properties.

Its earnings per share (EPS) for the quarter stood at 59.07 sen compared to a loss per share of 2.66 sen, its filing revealed.

Its quarterly revenue leaped 448% to RM34.28 million from RM6.25 million in the same quarter last year, supported by revenue contribution from its renewable energy (RE) segment from the Coara Marang project in Terengganu.

For the six-month period ended Dec 31, 2021 (1HFY22), Jentayu Sustainables reported a net profit of RM57.29 million from a net loss of RM6.04 million while its revenue grew by 225.82% to RM40.4 million from RM12.4 million.

EPS for the first half of FY22 stood at 56.46 sen from a loss per share of 8.27 sen.

On its prospects, Jentayu Sustainables said that the slow recovery of the Malaysian economy poses a challenge to its trading business segment. It said it has taken aggressive measures to evolve from a building materials supplier to a sustainable high-performing organisation involved in key growth sectors namely, RE and healthcare.

These measures include the disposal of non-core assets such as land and properties to reduce its gearing by settling various loans, acquiring a specialist hospital as well as improving the efficiency of its trading unit.

“Moving forward, the group will embark on its path of becoming a clean energy solutions provider entailing the ownership, operation, design, development and maintenance of solar and small hydro plants, among others,” the filing concluded.

Jentayu Sustainables closed two sen or 3.6% higher at 58 sen, valuing the group at RM144.77 million. It is trading at 3.67 times earnings based on Bloomberg data.