A SLOWDOWN in demand from international clients following uncertainty surrounding the US tariff policy announced in early April has taken a toll on JAG Bhd’s financial performance for its 1Q FY2025 ended March 31, 2025.
For the quarter under review, the ACE Market-listed total waste management company incurred a net loss of -RM6.43 mil from a net profit of RM3.01 mil in the same period last year. Its revenue dwindled 12% year-on-year (yoy) to RM46.47 mil (1Q FY2024: RM52.75 mil).
Amid the lack of clarity, customers took a more cautious approach to procurement which resulted in delayed orders during the period, according to JAG’s executive director Datuk Ng Meow Giak.
Nevertheless, the group views this as a temporary, one-off impact given market sentiment is already showing signs of stabilisation with semiconductor clients resuming typical procurement patterns.
“While 1Q FY2025 was impacted by external headwinds, we remain confident in our ability to deliver a strong rebound,” opined Ng.
“Management guidance for FY2025 remains strong and intact, and we expect the remaining quarters of the year to return to profitability.
“The long-term outlook for the industries we serve, particularly semiconductors and electronics, remain robust. We are focused on building the operational resilience and business agility needed to fully capitalise on these opportunities.”
As it is, JAG’s Total Waste Management (TWM) segment has continued to show strength and agility.
“We are broadening our revenue streams within TWM, including entry into the oil & gas (O&G) space and tapping into specialised services such as the disposal of scheduled waste, an area that requires licensed handling and technical expertise,” projected Ng.
The TWM segment remains the group’s primary growth engine. In addition to streamlining operations and refocusing on high-value activities, JAG is enhancing productivity through processing efficiencies, expansion of service scope and diversification into industries with long-term potential.
“As we enter this next phase of growth, we are also taking steps to enhance shareholder value,” envisages Ng.
“Given the strong fundamentals of our core business and the growth trajectory ahead, we are in the process of formalising a dividend policy. This reflects our confidence in the group’s performance outlook and our commitment to delivering long-term value to our shareholders.”
At the close of today’s (June 4) market trading, JAG was up 1 sen or 4.44% to 23.5 sen with 3.17 million shares traded, thus valuing the company at RM 177 mil. – June 4, 2025
